LAWSUITS NEWS & LEGAL INFORMATION
$39M Settlement Reached in USAA Auto Insurance Class Action Lawsuit
This is a settlement for the Bad Faith Insurance lawsuit.
Santa Clara, CA: A $39 million settlement has been agreed between class members and The United Services Automobile Association in a bad faith insurance lawsuit alleging the insurer breached the terms of auto insurance policies by failing to fully pay members for sales tax in the purchase of a comparable vehicle after their vehicles were written off in an accident.
According to the terms of the settlement class members will receive 100 percent of the value of their claims plus eight percent for claims of prejudgment interest. The claims are estimated to total $34 million, according to court documents. The five lead plaintiffs will receive a total of $46,000 in incentive payments.
The suit was filed in 2013, by Chantal Bastian, who was a policy holder with Garrison Property and Casualty Insurance Co. She brought the suit against Garrison and three other USAA-affiliated auto insurance companies over their sales-tax compensation and later agreed to add four named plaintiffs who were insured by the other companies.
The complaint alleged Bastian reported to Garrison that a tree fell on her covered vehicle. She subsequently received a letter from the insurer confirming that the vehicles was determined to be a total write off and broke down the payments the insurer would provide, minus the deductible, including the total vehicle cost, the title fee and a license plate fee. However, the insurer used that money to pay off her car loan and gave her the remainder.
Allegedly, Garrison sent a market valuation report with the letter to that detailed how it reached its financial decision, which included a calculation for the sales tax on a comparable vehicle. However, Bastian purchased a cheaper replacement car and received tax compensation based on its value, according to court documents.
The case is Bastian et al. v. United Services Automobile Association et al., case number 3:13-cv-1454, in the U.S. District Court for the Middle District of Florida, Jacksonville Division.
Published on Apr-27-17
According to the terms of the settlement class members will receive 100 percent of the value of their claims plus eight percent for claims of prejudgment interest. The claims are estimated to total $34 million, according to court documents. The five lead plaintiffs will receive a total of $46,000 in incentive payments.
The suit was filed in 2013, by Chantal Bastian, who was a policy holder with Garrison Property and Casualty Insurance Co. She brought the suit against Garrison and three other USAA-affiliated auto insurance companies over their sales-tax compensation and later agreed to add four named plaintiffs who were insured by the other companies.
The complaint alleged Bastian reported to Garrison that a tree fell on her covered vehicle. She subsequently received a letter from the insurer confirming that the vehicles was determined to be a total write off and broke down the payments the insurer would provide, minus the deductible, including the total vehicle cost, the title fee and a license plate fee. However, the insurer used that money to pay off her car loan and gave her the remainder.
Allegedly, Garrison sent a market valuation report with the letter to that detailed how it reached its financial decision, which included a calculation for the sales tax on a comparable vehicle. However, Bastian purchased a cheaper replacement car and received tax compensation based on its value, according to court documents.
The case is Bastian et al. v. United Services Automobile Association et al., case number 3:13-cv-1454, in the U.S. District Court for the Middle District of Florida, Jacksonville Division.
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READER COMMENTS
Marie
on
Anyway, I told Ussa everything, the fact the front end shifted and rim bend, and right front damaged, ussa didn’t turn in everything well they quote 5600 in actuality 16k
Was told the supplemented quote from their own list was approved.
My issue is that usaa knew it was damaged more then they stated they even added more mileage then it actually had tryin*bto decrease the value by thousands, (they never fixed that) they were to,d it would be over a month to get to the car by the collision company due to a shortage in parts and getting them there, so a few days after the rental company emailed me demanding money or car or legal action, so I got on the phone with USAA hours went by,nothing, I called again, got them to pay for anothe4 week, and again they had to be contacted to pay the rental, this in July, ugust 3 just called USAA was told it’s no5 tomorrow yet hmm. Ok then another person got on the line belittled me to a extent, stated this is how it works we get a quote from our adjuster you take to a repair shop if they give a second quote we look if it’s more then it should be we don’t pay, therefore you will end up paying the rental bill.
I’m like wait a minute you all from the get go knew you were wrong putting wrong info in, then making me sweat and get threatening emails about charges because yo7 all didn’t pay, I was told from Omar the second quote was approved that my rental is mine till I get the car back.
I don’t know what game this company is playing but do know they aren’t right
Marie
on
Anyway, I told Ussa everything, the fact the front end shifted and rim bend, and right front damaged, ussa didn’t turn in everything well they quote 5600 in actuality 16k
Was told the supplemented quote from their own list was approved.
My issue is that usaa knew it was damaged more then they stated they even added more mileage then it actually had tryin*bto decrease the value by thousands, (they never fixed that) they were to,d it would be over a month to get to the car by the collision company due to a shortage in parts and getting them there, so a few days after the rental company emailed me demanding money or car or legal action, so I got on the phone with USAA hours went by,nothing, I called again, got them to pay for anothe4 week, and again they had to be contacted to pay the rental, this in July, ugust 3 just called USAA was told it’s no5 tomorrow yet hmm. Ok then another person got on the line belittled me to a extent, stated this is how it works we get a quote from our adjuster you take to a repair shop if they give a second quote we look if it’s more then it should be we don’t pay, therefore you will end up paying the rental bill.
I’m like wait a minute you all from the get go knew you were wrong putting wrong info in, then making me sweat and get threatening emails about charges because yo7 all didn’t pay, I was told from Omar the second quote was approved that my rental is mine till I get the car back.
I don’t know what game this company is playing but do know they aren’t right
Catherine Hamon
on
To date the vehicle only has 74,000 miles and is UNFIXABLE.
This after paying $9,000. And spending more than that for repairs shortly afterwards.
Vehicle was sold with RECALLED parts CHRYSLER VOIDED my Warranty without telling me?
No matter how much proof or Complaints they just ignore.
Vehicle can go on Fire
Replaced COMPUTER-
Catalytic converter
Brakes- 3x no BRAKES while driving
ELECTRICAL system goes crazy
Goes out of gear
Dials go crazy
GAS FUMES INTOXICATING IN THE VEHICLE
Can't use defog, heat or A/C
Had to change 4 tires
Starter
Muffler 2x
SERPENTINE belt MELTED
Undercarriage has whole from Rust
Vehicle comes up as FLOOD VEHICLE Failed INSPECTION nearly every year
Engine light always on
Large EVAP LEAKS
Small EVAP LEAKS
Changed gas cap.....
I am disabled since 1993
This was supposed to be mommy van
Van sitting in parking lot
Barely put 50,000 miles and it cost me more then price of van and UNFIXABLE .
Has every RECALLED problem on NHTSA website and they just lie.
Now trapped with no transportation in upstate N.Y.
It is disgraceful and deplorable!
Letha Tasby
on