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USAA Underpaid Customers Class Action Lawsuit Details

Consumer Class Actions

USAA Underpaid Customers Class Action Lawsuit Details

USAA Was Charged With A Class Action Lawsuit Due To Underpaying Customers

The United Services Automobile Association (USAA), a car insurance company, was charged with a class action lawsuit due to allegations that the company short-changed its customers.

The Class Action Lawsuit

Jahazel Black, the lead plaintiff, filed the class action lawsuit against USAA in April 2021 at a Georgia federal court.

The lead plaintiff attests that the company unfairly paid its customers when paying for totaled vehicles.

He argues that USAA should be responsible for shouldering title transfer fees and sales tax according to their policy contract. However, he contends that the company has failed to do this.

The class action lawsuit aims to represent over 5,000 individuals residing in Georgia who have bought an insurance policy with USAA. The insurance policy should have been purchased from 2015. Individuals should have used their care replacement policy to claim for totaled vehicles.

It seeks to require the company to pay out compensation amounting to a $5 million settlement for damages caused by the company.

Plaintiff Allegations

The lead plaintiff contends that when a vehicle is totally destroyed, the car insurance provider should be responsible for paying for a replacement vehicle.

According to insurance regulations, the complainant maintains that the insurance providers should also pay for the license fees and sales taxes incurred from purchasing the replacement.

However, the lead plaintiff claims that the company did not follow this regulation. He insists that the USAA did not cover the license plate transfer and the replacement vehicle’s motor vehicle tax.

Jahazel Black believes that USAA has violated its own policy contract since it did not appropriately pay customers for their Car Replacement Assistance coverage.

He argues that USAA short-changed policy owners by not paying for the license plate transfer fees and TAVT. He adds that the company also breached Georgia federal laws from their actions.

Related Lawsuit

A similar class action lawsuit was filed against USAA in 2019. The lead plaintiff, Lester Spielman, also claims that the company did not correctly reimburse him for his total loss claims.

He declares that he has bought the auto physical damage coverage from the company. This policy covers collisions. The policy also states that the total actual cash value will be paid out if the vehicle was totally destroyed.

However, the lead plaintiff asserts that when his covered car was totally damaged from a collision in 2017, the company did not pay the registration fee, sales tax, and vehicle title fee.

He argues that the actual cash value should include all expenses incurred to replace the damaged vehicle, including fees and taxes.

Editor’s Note on USAA Underpaid Customers Class Action Lawsuit Details:

This article is published to inform you of the latest class action lawsuit filed against USAA Casualty Insurance Co due to allegations that they have underpaid customers.

Case Name & No.: Jahazel Black v. USAA Casualty Insurance Co., 1:21-cv-01363, U.S District Court of Georgia
Products/Services: Insurance policy for totaled vehicles
Allegations: The company did not pay for all fees and taxes when replacing totaled vehicles, which violates its policy
Status: Pending

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