USAA - Target Market

Target Market

USAA's mission statement indicates its focus is to serve its niche market, which consists of members of the U.S. military and their immediate families. To that end, the Association has always marketed directly to members of the U.S. military. USAA membership is offered to officers and enlisted personnel, including those on active duty, those in the National Guard and Reserve, Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS) and all those who have served in the aforementioned categories and who have retired or have been discharged honorably. Children of USAA members are also eligible to purchase USAA's P&C insurance products, and former members of USAA are allowed to resume membership at any time (without an age limit).

Eligibility can be determined using its website; however, the site does not contain a comprehensive statement of eligibility. USAA has, in the past, published a list of other eligible persons including special agents of the FBI and Secret Service, agents of the various military investigative services (NCIS, OSI, CI and CID), U.S. Foreign Service Officers, and officers from a variety of other smaller agencies. Recently, USAA has been sharpening its focus on members of the military. So, people working for certain non-military agencies that were accommodated in the past may find that they are no longer eligible.

Historically, only U.S. military officers (among certain other federally sworn officers) were eligible to join USAA, with descendants of USAA members able to purchase insurance from USAA-CIC. It did not matter if one was an active duty or retired officer; one could join at any time. In 1973, membership was opened to members of the National Guard and Reserves, and in 1996, eligibility was expanded to enlisted members of the armed services. As the number of persons who have served on active duty in an enlisted status in the U.S. Armed Forces is quite large, USAA chose to limit the establishment of eligibility to those who were currently on active duty or who had recently separated. The same time limit on establishment of eligibility was then applied to military officers. As USAA's capacity for taking on new members expanded, eligibility criteria relaxed. In 2008, USAA expanded membership eligibility to all military personnel and retirees, and all veterans who separated after 1996. In November 2009, USAA expanded eligibility requirements to offer coverage to anyone who has ever served honorably in the US Military.

Auto and property insurance and some banking services require that the customer meet membership eligibility criteria. USAA investment products as well as deposit-only banking services are available to non-members.

Of the top ten automobile insurance competitors, USAA is the only provider that restricts service to members of the United States military and their immediate families.