USAA closed 51% of home insurance claims without making a payment in 2025

This is interesting because it doesn't fit with my own experiences dealing with USAA home or auto insurance claims. During 2025 we had contacted them twice to file claims and in both cases the claims were paid according to the existing policy coverage level with zero hassle. Our initial contacts were by telephone and almost all of the paperwork was managed thru their online portal with follow-up phone calls to insure that everything was in order. Their claims reps arrived as scheduled, evaluated covered damages, and submitted documentation to support our claims.

In one case dealing with our house, I discovered a calculation error in my favor and submitted the corrected documentation to them. After examining that data they agreed and modified the claim to correct that error.

With the exception of the adjuster visits, all contacts with USAA were managed over the telephone or thru texts and emails. They are efficient and easy to reach.

I can see where USAA's statements that the numbers are off. From the article:

>In a statement, USAA said the association’s data is misleading because it lacks context about why a claim may be closed without payment. Those factors could include claims that were later reopened, claims covered under separate policies or multiple claims from a single event that are consolidated into one case.

Note that there are four different USAA insurance companies. Your military rank and how you got referred for membership will determine which one you join (listed highest/best to lowest):

United Services Automobile Association - Officers and senior NCOs

USAA Casualty Insurance Company - Enlisted (E-1 to E-7) and children of the above

USAA General Indemnity Company - National Guard, Reserve

Garrison Property and Casualty - Extended family of the above

I can't get past the article's paywall to view the 51% rate, but I expect your claim process experience will vary based on which company is insuring you.

I have noticed that the quality of service has declined over the past 5 years or so (which lines up with Peacock's being CEO). It sometimes takes 2 or 3 calls to answer a question with my policies these days, as they now have high turnover in the call center.

There are lots of small insurers at least.

Multiple resources on the internet put the startup costs at $500K or less. That's not much more than fast food or other high touch retail startups by comparison.

There are certainly a few steps on the learning curve but it's mostly high school and undergraduate math that is needed. That puts it out of reach for some but the field is pretty flat once you get there, is my perspective having considered and opted against getting into it.

In other words, there's no moat in insurance.

Wise economically.

For things you can cover, external insurance will be more expensive than self-insurance because you aren't paying for random CEOs. (Unless you've captured some and are tending to them)

State Farm is slightly more expensive than others.

From a policy standpoint, this works out really well for them as the bottom feeders aren't their customers, so they have fewer claims.