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Why does USAA advertise so much?

7,114 Views | 62 Replies | Last: 2 yr ago by Stat Monitor Repairman
Stat Monitor Repairman
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Between TV, radio, youtube I probably see a USAA ad at least once a day, probably more.

Seems like they have been aggressively advertising for a long time now.

Does this seem unusual to anyone else?

-Its got a closed pool of potential customers.

-What person eligible for USAA would not already know about USAA?

It seems off to me. Maybe someone knows.
hbc07
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AG
Well, it got you talking about them.
Trucker 96
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SMM48
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AG
They are "advertising" to institutional clients, and current, and qualifying clients.

Their USAA Nasdaq 100 portfolio inside many pension plans.

Pension plans don't use funds or etfs.
deadbq03
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AG
Also, there are thousands of new enlistees every month. In many cases, they're not the brightest tools in the shed. Sometimes you have to pound your feet to make sure they know what's gonna be on the test... or in this case, keep hammering them with ads.
SMM48
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AG


Also. Usaa doesn't do a great job of clarifying who is eligible.

But more people are eligible that what they realize.

Parent served military. Their spouse and children are eligible. That makes their children's spouse eligible. Who then makes their grandchildren eligible. Etc etc.

With the largest class of wealth retired or nearing retirement, they are advertising to the future generation of wealth transfer.
Stat Monitor Repairman
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USAA is the 31st largest bank in the US in total assets.
azul_rain
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USAA sucks



i have accounts with them
you may all go to hell and i will go to Texas
Stat Monitor Repairman
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hedge said:

USAA sucks



i have accounts with them
Yeah me too. Thats what got me wondering why these mfers are spending so much on advertising and have the same rates as every other bank. Are they making so much money they dont know what to do with it?

Is that the deal?

deadbq03
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They used to have great rates. Not so much anymore.

I only use them for banking now... and honestly the only reason I haven't bothered to change is because direct deposits clear day early. Not a huge financial perk, but it's fun being the first peon in my office to know when a bonus is coming.
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Carlo4
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TombstoneTex
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third coast.. said:

Yra, I switched most everything away from them except for banking. I still have auto insurance there as well because last I checked rates I was still coming out ahead. Their customer service has always been great and their auto claims process has been top notch. What I hate is the pitch you get whenever you call them.
I rarely hear anyone saying they're coming out ahead on auto insurance with USAA. May work for you just surprising! I saved a ton when I moved away from them... was using goosehead to shop my home insurance and was also able to save a ton by switching away from USAA auto.
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RockOn
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Seems weird that that the one banking reg that would most apply to them is the one they goofed on the worst.

OCC Assesses $85 Million Civil Money Penalty Against USAA
https://occ.gov/news-issuances/news-releases/2020/nr-occ-2020-135.html

Quote:

The OCC took this action based on the bank's failure to implement and maintain an effective compliance risk management program and an effective information technology risk governance program. These deficiencies resulted in violations of law, including but not limited to violations of the Military Lending Act and the Servicemembers Civil Relief Act. The bank is in the process of remediating these violations pursuant to the requirements of the January 2019 Consent Order the bank entered into with the OCC.

JSKolache
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Why? Because their competitors are:

Flo from Progressive
Jake from state farm
Geico lizard
Mayhem from Allstate
Wacky stories guy from Farmers

These companies EACH spend billions annually in ads - they are alllll overcharging customers....
azul_rain
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Mayhem is the best followed by the Gekko
you may all go to hell and i will go to Texas
Stat Monitor Repairman
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Yep. Its wild to think about.

All for a product that you are forced to buy in order to live a first world lifestyle.

All backed by the same small group of companies in the reinsurance market.
Agswinning
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JSKolache said:

Why? Because their competitors are:

Flo from Progressive
Jake from state farm
Geico lizard
Mayhem from Allstate
Wacky stories guy from Farmers

These companies EACH spend billions annually in ads - they are alllll overcharging customers....



This 1000%

They are trying to keep what little market share that they have
Teslag
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AG
Switched to Navy Federal and they've been fantastic
kb2001
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FunkyKO said:



Also. Usaa doesn't do a great job of clarifying who is eligible.

But more people are eligible that what they realize.

Parent served military. Their spouse and children are eligible. That makes their children's spouse eligible. Who then makes their grandchildren eligible. Etc etc.

With the largest class of wealth retired or nearing retirement, they are advertising to the future generation of wealth transfer.
They have greatly expanded their membership qualifications over the last decade and let more and more people in. Prices have gone up accordingly, but the quality of service is still fantastic.
Deputy Travis Junior
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FunkyKO said:

They are "advertising" to institutional clients, and current, and qualifying clients.

Their USAA Nasdaq 100 portfolio inside many pension plans.

Pension plans don't use funds or etfs.


In pretty sure that they sold their asset management subsidiary a year or two ago.
SMM48
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AG
they may have, but the name is still on it.

I see it in deferred compensation plan. haven't changed the name....yet.
Deputy Travis Junior
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Interesting. It looks like Victory Capital is running that thing now. So USAA is probably getting referral bonuses or something?

https://investor.vcm.com/products/mutual-funds/mutual-funds-list/usaa-nasdaq-100-index-fund

aggiepaintrain
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AG
Try to have a claim processed with USAA, you will never EVER have insurance with them..

I use Progressive and pay $3600 per year for 4 drivers 2 of which are 17 and 19
all full coverage, Flo for the win!
FJB
Noble07
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I got rid of USAA b/c they force you to keep a pretty low deductible. That and the fact that Progressive gives a discount if I pay cash upfront for the auto coverage.
jtraggie99
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aggiepaintrain said:

Try to have a claim processed with USAA, you will never EVER have insurance with them..

I use Progressive and pay $3600 per year for 4 drivers 2 of which are 17 and 19
all full coverage, Flo for the win!
That's never been the case for me. I'm 44 and have never used anyone else besides USAA for home and auto (I do all of my banking there as well). Their rates have creeped up on me, but every time I have had a claim, it has been completely issue free, quick and painless.
ccatag
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JSKolache said:

Why? Because their competitors are:

Flo from Progressive
Jake from state farm
Geico lizard
Mayhem from Allstate
Wacky stories guy from Farmers

These companies EACH spend billions annually in ads - they are alllll overcharging customers....


You forgot Limu Emu at Liberty Mutual
JSKolache
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ccatag said:

JSKolache said:

Why? Because their competitors are:

Flo from Progressive
Jake from state farm
Geico lizard
Mayhem from Allstate
Wacky stories guy from Farmers

These companies EACH spend billions annually in ads - they are alllll overcharging customers....


You forgot Limu Emu at Liberty Mutual
& Doug.
YouBet
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Insurance is a commodity. Shop it.

You might be surprised at how much you can save simply using a broker who does this for you.
strbrst777
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I'm a veteran and eligible.
I will NEVER do biz with USAA. Unreasonably low payment on my diminished value claim....less than one-fourth of the $5000 hit I took on the trade just weeks after repairs totaling $13,000 and change were completed. Slow and arrogant. I sent the check back but finally accepted rather than fight. Ok on the repairs and rental car.

Let's suppose that I run a red light and T-bone your car causing major damage. My insurance company will pay for repairs and rental car; you know that. Let's say that your car loses value in the amount of $7,500 because it was damaged in a collision. Will you make a claim with my insurance company for loss of value? If not, why not?
Wyoties
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My few experiences with claims have been remarkable. Friend and I even joke if you're having a bad day just call USAA to lift you up.

Because of that I've never shopped around, but learning our rates have crept well above what they probably should, considering hardly any claims over last +10 years, so may make the switch if attractive enough and good reputation.
SteveBott
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Had two clients pass I the last six months. One was looking at using my service. It's a process. USAA needs to fill their new customer pipeline like the rest of their competitors.
OKC~Ag
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it is interesting to question why USAA even needs to advertise...

I am pretty sure they are rolling in their money...aside from millions of $$ revenue from insurance, USAA invented that scheme of depositing a check electronically with your phone... Now all the financial institution that has same electronic deposit feature likely pay some $$ to USAA...

I know that 30 years ago or so, USAA opened their services to NCO and enlisted, effectively increasing the pool of potential customers.

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