USAA Cuts Auto Insurance Rates by 5 Percent in California; California is the Latest State to Receive Rate Cuts from USAA

SAN ANTONIO--Aug. 9, 2006--USAA is cutting auto insurance rates by an average of 5 percent in California, saving policy holders more than $32 million in annual premiums. More than 318,000 USAA policy holders will save an average of 8 percent, or more than $100 on their annual premiums.

This initiative is part of USAA's efforts over the past year to lower auto and homeowner insurance rates in selected states throughout the country by over $480 million. Last week, USAA announced homeowner insurance rate cuts of up to 27 percent, or 22 percent on average, in California.

"California is the latest in a series of states where we've been able to cut rates for our members," said Joe Wehrle, president of USAA Property and Casualty Insurance Group. "Particularly in California, where drivers are paying over $3 for a gallon of gas, USAA's auto rate cuts will come as good news."

The new lower pricing is available to all USAA members living in California and to those who qualify for USAA membership -- including current military members and their families. USAA is able to offer competitive prices and reduce rates -- and pass those savings on to members -- as a result of improvements in productivity on the company's part.

The new rating plan will also comply with newly adopted Department of Insurance regulations.

Insurance premium reductions will vary by location and may not be available to all policy holders or applicants. Average premium reductions assume no change in insured individuals, property, coverages, or benefits. Premiums will change at renewal.

    By The Numbers

$100:    Average annual 
         savings

5%:      Statewide average 
         USAA auto rate 
         reduction

318,000: USAA members eligible 
         for rate cuts in 
         California

USAA, a diversified financial services company, is the leading provider of competitively priced insurance, investments, and banking products to members of the U.S. military and their families. The company's 5 million members around the world rely on the convenience and accessibility of USAA's financial products, backed by industry-leading service. For more information about USAA's products and services, or to learn more about membership, visit usaa.com.

USAA means United Services Automobile Association and its affiliates. The term "member" refers to current USAA customers who are eligible for property and casualty insurance, and their dependents who are current USAA customers. The term does not include secondary joint account holders. Use of the term "member" does not convey any legal rights, eligibility rights for USAA property and casualty insurance, or ownership rights in United Services Automobile Association.