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Amica vs USAA

The economics of the car insurance may seem a little impenetrable, but the standard, core business plan of an auto insurer is reasonably simple. An insurance company quantifies and manages the probabilities of automotive risk. In this context risk equates to a car accident. Insurers have reams of data about the frequency of vehicular accidents and the resulting personal and property damage. So, their business model tries to match up expected revenues, or premiums, from policy holders against expected expenses, or payouts for claims. The difference between these two is the difference between a profit or a loss. So you can see how the pricing of car insurance is partially a science and partially an art.

According to recent statistics, about 7 million car accidents occur annually in the United States. These accidents result in approximately 40,000 crash related deaths and $4.5 million serious injuries in 2018. The annual cost of of this mayhem is estimated at roughly $1 trillion per year.

The potential financial impact of a car accident on an individual or family can be enormous. That’s part of the reason why virtually every state mandates drivers to carry car insurance on their vehicles. Most car insurance providers encourage drivers to be safe motorists by offering them good rates for their coverage but there is coverage to be had for all drivers. Insurance premiums don’t come at a single price for all consumers. Do your due diligence when you are looking for auto insurance. Shop around and get price quotes and you’ll some yourself some money.

Age tier USAA avg. annual premium Amica avg. annual premium
Teens $2,864 $5,366
20s $1,261 $1,631
30s $963 $1,631
40s $957 $1,151
50s $889 $1,105
60s $845 $1,066

Some Information on Amica

Headquartered in Lincoln, Rhode Island, this New England firm is the oldest mutual insurer of cars in the United States.  It was founded in Providence in 1907 by entrepreneur A.T. Vigeron as the Automobile Mutual Insurance Company of America.  It bears noting that mutual entities are owned by their policy holders and many believe that this status permits better alignment of corporate and customer interests by allowing management to take a longer view of company operations.

 The company also provides personal liability coverage and marine insurance to customers, provides auto coverage in selected states, has assets of over $5 billion and over a million and a half in-force policies.

Mutual companies are owned by their policyholders as opposed to stockholders like in a publicly traded company. They are better able to keep the long-term financial well-being of both company and policyholder in the forefront, as opposed to succumbing to near-term, but sometimes short-sighted, profitability concerns. Check and see if Amica’s process stack up well against their competitors.

Discount Type Amica USAA
Low Mileage Discount up to 10% Varies
Daytime Running Lights Discount -- Varies
Claims Free Renewal Discount Varies --
Defensive Driver Discount Varies Varies
Good Student Discount up to 10% Varies
Anti-lock Brake Discount up to 5% Varies
E-billing Discount Varies --
Provider Switch Discount Varies --
Paid in full discount Varies --
Prepay Discount Varies --
Passive Restraint Discount up to 40% up to 15%
Loyalty Discount Varies Varies
Accident Forgiveness -- Varies
Vehicle Storage Discount -- up to 60%
Student Away at School Discount up to 10% up to 20%
Anti-Theft Device Discount up to 25% up to 20%
Military Discount -- up to 15%
Multiple Policy Discount up to 10% up to 9%
Good Driver Discount Varies up to 10%
Preferred payment discount Varies --
Home Owner Discount Varies --
Electronic Stability Control Varies --
Driving training discount Varies Varies
Paperless documents discount Varies --
New Car Discount -- Varies
Multiple Vehicle Discount up to 25% up to 13%
teenSMART Discount -- Varies
Family Discount Varies up to 10%

Is Amica Right For You?

Amica prides itself on its financial strength and its customer service. They offer a broad range of car insurance coverages, so you should do your homework to ascertain what financial protections you want your policy to contain. See if you are eligible for special price reductions. Some insurance carriers issue discounts for things like insuring multiple cars, being a good student, and even paying your premiums upfront. Explore all options so you don’t inadvertently leave money on the table.

Get free price quotes from Amica and compare them to others. It can pay off with cheaper prices.

Next, Let’s Look at USAA

The United States Automobile Association, or USAA for short, is a unique entity among the players in the auto insurance field. It neither a publicly traded corporation nor a mutual company. Rather, it is an inter-insurance exchange. This means that the firm’s policy holders actually insure each other, and profits are distributed to the its members.

It’s important to know that USAA only markets its products to members of the armed forces and their families. It provides all types of insurance and a full range of banking and investment services to its members. USAA got its humble start in 1922 when a group of Army officers who banded together to jointly spread the risk of insuring each other’s cars. They had been denied coverage of their own in the nascent auto industry. The firm has grown tremendously since then and is included in Fortunes list of the top 100 companies in the country.

USAA has recently reported annual that they have almost 34,000 around the world, employ 34,000 people and have annual revenues of $31 billion. The connection of American service men and women to USAA isn’t only as customers. The form reports that nearly 25% of its workforce are either spouses of active military personnel or are veterans themselves.

Will USAA be cheaper?

As mentioned, USAA is an auto insurance option only if you are affiliated with the United States armed forces as an active member, family member or veteran. If you fall into that category, you should definitely give them a look. But be advised: many insurance companies give discounts to service members. It will still be worth your while to compare USAA’s car insurance prices to other carriers. Ask for free price quotes from USAA and compare them to their competitors. Be savvy about the way you get your car insurance.

Amica vs USAA – Which Is the Insurer for Me?

If you’re not in the armed services, a family member of a serviceman or a veteran, then USAA is probably not a viable option. Remember: the armed services are their customer base for USAA. But if you fall into that category you should by all means still compare their prices to Amica. The complexities of insurance pricing are such that it’s hard to say for sure who can give you the best deal. Keeping insurance providers competing for business helps all consumers get better pricing. Look, car insurance can cost a lot of money. Smart shoppers do their due diligence and save.

The Bottom Line for Car Insurance Savings

The General.com web tool gives you a streamlined way to get free price quotes from multiple carriers. And all it takes is a few clicks of our onscreen buttons. You can use these head to head price quotes to see for yourself how to save money on your car insurance. Let General help you save money.

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