USAA CUTS AUTO INSURANCE RATES BY 12 PERCENT IN TEXAS; REDUCTIONS ATTRIBUTED TO LEGISLATIVE REFORM AND OPERATING EFFICIENCIES

SAN ANTONIO--(BUSINESS WIRE)--Nov. 11, 2004--In December, USAA will reduce auto insurance rates by an average of 12 percent for its Texas members. The reduction follows a February 2004 rate cut of 4.5 percent. USAA is the fifth largest auto insurer in Texas with more than 390,000 auto policy holders. Henry Viccellio, president of USAA Property and Casualty Insurance Group, attributes the lower rates to:

-- USAA's operating costs that are lower than industry average,

-- Senate Bill 14, which encourages a more competitive insurance market.

Viccellio commends Insurance Commissioner Jose Montemayor, along with members of the state administration and elected officials for their work to implement Senate Bill 14. The legislature passed Senate Bill 14 last year. Elements of the law are now taking effect.