For auto and home insurance companies, trust flows from the relationship between carrier and customer. It's easier for policyholders to believe in their most trusted insurance company if the insurer puts its faith in its policyholders.
That's a big part of USAA's success. Founded in 1922 by military officers, USAA provides insurance and other financial services to more than 13 million U.S. military members. Current and former military, their spouses and their children are eligible to purchase USAA auto and home insurance.
And that is a big part of why USAA captured first place for this year's IBD Most Trusted Financial Companies, as well as capturing top honors in both the auto insurance and home insurance categories of the trust survey. The rankings are based on how customers rated their trust in USAA and 73 other financial companies.
USAA Is No. 1 Most Trusted Insurance Company For Auto And Home
With a niche of veterans who have honorably served and their families, USAA has a built-in advantage over competitors that market their auto and homeowner insurance products to a broader base of consumers. Insurers rely on information submitted by their customers — and hope that their policyholders act responsibly to minimize claims. When both parties share a bond, everyone tends to come out ahead.
- See The Full List Of The IBD Most Trusted Financial Companies
- Learn How The Most Trusted Financial Companies Survey Was Conducted
- Read Our Full Special Report On Most Trusted Financial Companies
David Long, a real estate agent in Plano, Texas, typifies the loyalty that USAA breeds. The septuagenarian has been a USAA customer for over 50 years.
Soon after Long joined ROTC in college in 1970, he purchased auto insurance from USAA. He later got a USAA homeowner policy when he bought his first house.
"Even though I was only in the Air Force for four years, USAA (employees) sometimes still refer to me as Captain Long," he said with a laugh. "I like that."
On the few occasions when he's filed a claim, Long credits USAA's responsive service. When a severe hailstorm ruined his roof about five years ago, he recalls that USAA quickly sent a claims adjuster to inspect the damage. After Long chose a roofer, USAA returned to confer with the roofing company and settled the claim to Long's satisfaction.
Erie, AAA, State Farm Also Rank Highly
Homes and automobiles are two of the biggest purchases consumers make. So it's important to know you can trust the companies behind that insurance.
Investor's Business Daily conducted a survey with polling partner TechnoMetrica Market Intelligence to find out which are the Most Trusted Financial Companies. Analysis of the IBD survey revealed which are the best auto and home insurance companies based on trust ratings by their own customers across five critical trust components: data privacy and security, quality of products and services, ethical business practices and values, fair prices and fees, and customer service.
We recognize the 25 Most Trusted Financial Companies overall and the top three in each business category.
In terms of trust, USAA was No. 1 on all five trust components in both the auto and home insurance categories, trouncing the firms that placed second and third. In home insurance, Erie Indemnity's Erie Insurance placed second, followed by State Farm.
Ten home insurers were included in the survey. Others home insurers were: American Family Insurance, Farmers, Liberty Mutual, Allstate, Travelers Insurance, Progressive and Nationwide.
3 Most Trusted Home Insurers
| Company | Overall Trust Rating | Privacy | Quality | Ethics | Price | Customer Service |
|---|---|---|---|---|---|---|
| USAA | 90.1 | 93.9 | 92.3 | 91.5 | 82.3 | 88.7 |
| Erie Insurance | 84.2 | 86.6 | 87.7 | 83.6 | 75.2 | 86.2 |
| State Farm Insurance | 78.1 | 82.3 | 83.6 | 78.8 | 65.7 | 77.6 |
3 Most Trusted Auto Insurers
In auto insurance, Auto Club Exchange (AAA) was second, followed by State Farm.
| Company | Overall Trust Rating | Privacy | Quality | Ethics | Price | Customer Service |
|---|---|---|---|---|---|---|
| USAA | 91.1 | 93.0 | 95.3 | 91.6 | 84.1 | 89.7 |
| Auto Club Exchange (AAA insurance) | 83.3 | 86.0 | 87.4 | 88.0 | 68.3 | 84.2 |
| State Farm Insurance | 77.7 | 83.1 | 82.1 | 79.8 | 61.3 | 78.9 |
Other auto insurers included in the survey were: Liberty Mutual, Farmers, Nationwide, American Family, Geico (a subsidiary of Berkshire Hathaway, Travelers, Progressive and Allstate.
Long receives solicitations from other insurers bidding for his business. But he ignores them.
"USAA's service has been so good that even if they're no longer the cheapest, I'd stay with them," he said.
USAA refers to its policyholders as members. As a member-owned association, the company returns part of its profits to members.
USAA Is No. 1 On All Five Trust Components
"I like the dividends they return to us," Long said. By aligning the interests of both policyholders and the company, everyone works together.
To maintain a high level of trust, USAA continues to innovate. As more of its rivals roll out reward programs for drivers who adopt safe habits, for instance, USAA seeks to keep pace.
"We always strive to listen to members' needs and respond accordingly so their level of trust never wavers," said Randy Termeer, senior vice president of auto insurance at San Antonio, Texas-based USAA. "As an example, our members' driving habits and behaviors have changed over the course of the pandemic and many have looked for ways to save money. In response, we accelerated the launch of our behavior-based telematics program SafePilot in the majority of states, and announced our intention to acquire Noblr to offer usage-based insurance to them."
Long says that while he hasn't tried SafePilot yet, his son (also a USAA customer) enrolled in the program and likes it. Through SafePilot, policyholders can reduce their auto insurance premium by downloading the app. It automatically shows how well they drive and, if they drive more safely, they can qualify for premium discounts.
