We have been members in USAA and insured with them for over 14 years. A tornado 'totalled' our 2003 33' 5th wheel RV on May 10, 2008. The RV was 'fully' insured with USAA and we carried a $500.00 comprehensive deductible. The policy clearly states USAA's definition of 'Actual cash value' for a total loss as follows:
"the amount that it would cost, at the time of loss, to buy a comparable vehicle. As applied to your covered auto, a comparable vehicle is one of the same make, model, model year, body stype, and options with substantially similar mileage and physical condition."
(NO BRAINER!)
After speaking with a USAA rep, we got online, googled up some comparable RV's. We were able to locate only two for sale nationwide at the time of our loss. The one in California had already been sold (for over $25,000) by the time we called. The other RV is located in Arizona and after 3 separate phone conversations with that dealer, we were able to deal down to a price of $23,500.
To me, that IS the fair market value of our RV. We would like to be reimbursed for that amount and since we live in Missouri, apply that amount towards a newer model available locally. USAA, however, had other ideas regarding the 'fair market value'. According to them, using CCC Valuescope, our RV should only be worth around $13,000. Coincidently, (I'm sure) our remaining loan amount (at USAA) is slightly over (you guessed it) $13,000!!
USAA claimed they had located some comparables for our RV and provided us a list of examples. When we researched the RV's they used for comparison, we found each one to be at least 5 feet shorter than ours and they also contained fewer options than our RV.
After considerable negotiations and pleading our case with various adjusters and supervisors at USAA, they finalized their evaluation of our RV to be $17,746, which is still way below what it will take to replace our exact RV. That would, in effect, turn our $500 deductible into a $5,754 deductible. Then, too, we would be out several hundred dollars worth of travel expense to go pick up the replacement RV.
In our opinion, USAA insurance isn't worth the paper it's written on.
We have cancelled our remaining auto policies with USAA. We are currently instigating other financial options that will allow us to pay off the existing loans for other auto's or motorcycles we currently have with USAA. And we will find another credit card company to accept the balance of our USAA card. In the future, USAA will not recieve any of our banking, credit card, or insurance business. Furthermore, even if we live to be 100, we will never pass on an opportunity to provide negative word-of-mouth for USAA accordingly.
When the chips are down, good insurance companies shine. USAA does not shine. They only strive to cheat people for the almighty buck.
Jim
Neosho, Missouri
U.S.A.
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