I’ve been with USAA for 35 years and had never filed a claim until a minor one two years ago. Here’s what happened:
Claim payout: $507.60 (filed 10/6/23)
Premium increases because of the claim:
11/24/23: $322.06 added to my premium because of the claim.
11/25/24: $373.83 added to my premium because of the claim.
2025: Who knows?
Why would I file a claim if I’m just going to pay it back—and then some—through higher premiums? It feels like USAA benefits more from hiking premiums than from the claims themselves. This isn’t the company I trusted years ago, and I think it’s time to look for other options.
tasha said:
Why even bother filing a claim for just $500?
Homeowners insurance makes it sound great—you pay $16 a year to cover small electronics like your laptop. But then, if you file a claim, they’ll charge you more over the next few years than the laptop was worth. What’s the point of the extra coverage if you can’t use it?
@Kit
If you have specific items like electronics, you should look into a Personal Articles Policy. The deductible is smaller, it’s not linked to your homeowner’s policy, and it usually costs less.
Suki said: @Kit
If you have specific items like electronics, you should look into a Personal Articles Policy. The deductible is smaller, it’s not linked to your homeowner’s policy, and it usually costs less.
Keep in mind, though, it still gets reported on your CLUE report, which can label you as higher risk.
Firth said: @Wei
Some companies in certain areas don’t rate personal article claims the same way as homeowners claims.
My wife lost her wedding ring, and we filed a claim under a personal articles policy. Later, when we shopped for homeowners insurance, it caused our rates to go up because they counted that claim against us.
It’s tough to learn the hard way, but most people will tell you not to file small claims. The payout amount doesn’t matter much—it’s the act of filing that impacts your future rates and insurability.
Camden said:
It’s tough to learn the hard way, but most people will tell you not to file small claims. The payout amount doesn’t matter much—it’s the act of filing that impacts your future rates and insurability.
I’ve always thought of insurance as something for big losses, not small stuff.
When you file a claim, you change your stats. Statistically, you’re now a higher risk, so you get charged more. I just had this exact conversation with a teenager who thought insurance was only about getting paid for accidents.
Skylar said:
Why would you file a claim for such a small amount? Insurance is for big, unexpected losses.
This is the point. Insurance is for the things you can’t afford to fix on your own, not a $250 dent in your car. Filing for small claims just makes you look like a higher risk.
Most carriers are raising rates right now, but filing a claim just makes it worse. Only use insurance for big stuff or claims over several thousand dollars.
I got tricked into filing a small claim years ago. USAA called me to ask about a power outage and offered $500 for spoiled food. Not knowing better, I accepted. It’s been a nightmare ever since—higher premiums, trouble getting quotes from other companies, and it’s still on my record. It’s like they set you up to fail.