A car insurance company has been short-changing its Georgia customers when paying out for totaled vehicles, a new class action lawsuit claims.
United Services Automobile Association (USAA) was obligated to cover sales tax and title transfer fees under its policies, but didn’t, Plaintiff Jahazel Black alleges in a class action lawsuit filed Monday in a Georgia district court.
Black is seeking more than $5 million for more than 20,000 Georgia insurance policyholders covered by USAA since 2015 who made claims for totaled vehicles with its care replacement policy.
The lawsuit says that under Georgia insurance regulations, car insurance providers are meant to cover the price of buying a vehicle similar to the one that was destroyed and must cover all applicable taxes and license fees when a totaled car is replaced.
However, Black alleges USAA breached its contract by underpaying on its Car Replacement Assistance coverage by skimping on paying the Georgia motor vehicle tax and license plate transfer fees.
“USAA breached its Policy with Plaintiff and violated Georgia law by failing to pay all the TAVT and license plate transfer fees due on Plaintiff’s total loss claim,” the lawsuit states.
Black is asking a judge to decide whether USAA was required under its policy to pay TAVT and license plate transfer fees based on the requirements of Georgia law. He also asked a judge to clarify how to calculate payments on total loss claims.
Black is suing under breach of contract and seeking a jury trial, certification of the Class, damages, costs, fees and interest.
This is not the first class action lawsuit USAA has faced over a similar issue.
In 2019, California Plaintiff Lester Spielman filed a car insurance class action lawsuit against USAA claiming the insurance company systematically underpaid him and potentially tens of thousands of other policyholders.
Meanwhile, certain USAA car insurance policyholders and health care providers in Washington may be able to benefit from a new class action lawsuit settlement. Click here for more information.
Do you trust your insurance provider to pay out the correct amount when you have a crash? Let us know in the comments!
Black is represented by Christopher B. Hall and Gordon Van Remmen of Hall & Lampros LLP, W. Thomas Lacy of Lindsey & Lacy PC, Scott Edelsberg and Christopher Gold of Edelsberg Law PA and Andrew J. Shamis of Shamis & Gentile PA.
The USAA Sales Tax Class Action Lawsuit is Jahazel Black v. USAA Casualty Insurance Co., Case No. 1:21-cv-01363, in the U.S. District Court for the Northern District of Georgia.
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4 thoughts onUSAA Short-Changed Customers With Totaled Cars, Class Action Lawsuit Alleges
My car was totaled in august and after being sent to a recommended “body shop” aka caliper collision , and not a mechanic my car showed faults I spoke with USAA and they explained to me that those were expected issues with my car that they weren’t responsible for after having a mechanic view my vehicle stated that my engine block was broken and was due to my accident which ussa denied
I am currently trying to get what my truck is worth. All USAA did was run the VIN and pulled up what it came out with from the factory. I have lowered my truck myself, had it custom painted, had the interior customized added 20″ wheels and tires hard tonneau cover. Custom stereo. The person who hit my truck was insured by USAA
Does this suit go back to 2013? I totaled a car in stop and go traffic. The whole experience was unnerving. I live in Pennsylvania does that matter?
I want to be added to this law suite. USAA total lost my Bentley Continental GT. I was not happy with my settlement.