Technically, it only should transfer to immediate family. Last year Geico started gouging me, so I had my grandfather (WW2 USAF vet) sign up for the cheapest possible USAA policy ($30/year). As soon as he was all signed up, my dad signed up for the same. And since it passes down, I was then able to sign up as the descendant of another USAA member and have my cars, renter's, and firearms through USAA. Thanks Grandpa!