USAA was a great company for officers since everone knows we don't lie cheat or steal nor tolerate anyone who does....when they allowed enlisted and warrant officers and other undesirables the rates naturally went up for everyone
USAA started out as an insurance company for officers only, because they had difficulty getting auto insurance. Through the years other military personnel were added, for example warrant offices were members during the Vietnam war. Eventually, all active military and then finally anyone who was ever in the military.
I have been a member for over 30 years and have found USAA to be a first class operation, including the few claims that I have made for car accidents and house damage. Take a look at any large company board. They are composed of company executives who generally have experience in the industry or have a very large stake in the company.
If you have problems with the company you can do what most people would, and that is take your business elsewhere.
I agree with your assessment of USAA completely. When I first got USAA insurance in January 1968, I was still a warrant officer candidate with more than 6 months to go to graduate and get appointment. (I was getting E-5 pay at the time.) I have never had reason to regret having coverage through USAA.