USAA class action lawsuit overview:
- Who: The United Services Automobile Association (USAA) is facing a class action lawsuit related to its handling of automobile personal injury protection and medical payment claims.
- Why: USAA is accused of delegating its claims to a third party company’s computer program that improperly reduces or denies USAA claims.
- Where: USAA’s counsel petitioned to have the case removed from Clark County, Washington, court and moved to the U.S. District Court for the Western District of Washington at Tacoma.
The United Services Automobile Association (USAA) is facing a class action lawsuit claiming that it uses a third party company that improperly reduces or denies claims related to automobile personal injury protection and medical payments.
USAA is accused of using third-party Auto Injury Solutions as part of a multi-faceted USAA claims scheme to implement a computer program called Medical Bill Audit (MBA) for denying claims.
“The MBA process is designed, largely through automated computer processes, to categorically and systematically, without human input, eliminate, abate and/or reduce the amount USAA pays for its insured’s health care expenses based upon its treatment of various codes,” the USAA lawsuit says.
USAA customers claim insurance adjusters never look at denied claims
The USAA lawsuit plaintiffs Caryn Jennings and Tricia Harder are both Washington residents who had automobile accidents and are part of a class stating that USAA did not investigate their claims and instead used Auto Injury Solutions’ computer model to deny or reduce claims.
USAA has used the program to avoid having a USAA insurance adjustor review the claim or conduct an investigation into the validity of those claims, the USAA class action says.
A September class action lawsuit claims USAA did not properly protect the personal information of clients, resulting in the USAA data breach.
Have you had a personal injury or medical claim denied by USAA? Let us know in the comments.
The defendants are represented by Kimberly A. Reppart and Kara A. Tredway of Forsberg and Umlauf P.S.
The plaintiffs are represented by Jason T. Dennett and Cecily C. Jordan of Tousley Brain Stephens PLLC along with Franklin D. Azar, Dezarae LaCrue, Michael D. Murphy, Timothy L. Foster and Brian Hanlin of Franklin D. Azar and Associates P.C.
The USAA class action lawsuit is Jennings, et al. v. USAA Casualty Insurance Company, et al., Case No. 3:23-cv-06171, in the U.S. District Court for the Western District of Washington at Tacoma.
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151 thoughts onUSAA class action alleges company uses third party to unfairly reject, underpay claims
I am looking for assistance. I have had major issues with USAA including my auto claim from January as well as my auto policy. According to the BBB, USAA has violated several criminal and civil rights. And I am looking for some way to get some sort of justice:
On 1/9/26, I was taking my daughter to college (from NM to AZ). In the middle of nowhere (20 miles from the nearest, itty bitty town), I hit a patch of ice, slid into the ditch, hit a tree and boulder. USAA dispatched the only tow truck/repair shop to my location (from that itty bitty town) to be wrenched out. When I was pulled out, we tried to drive away but my Chevy Traverse was unable to drive. So this tow truck, towed me to their shop. I spoke to a USAA representative what was going on but she didn’t provide any direction as to what I was supposed to do. This again was the ONLY repair shop available. The closest town was about 100 miles away from us. This gentleman worked overnight to get the parts and fix my Chevy so I could finish taking my daughter to college and get home (I was still about a half a day away from either direction). The shop didn’t fix all the repairs, only what was necessary to finish my trip and get home. I paid $1710 out of pocket for that. I also had to pay for a hotel out of pocket. But I was denied the reimbursement of them both. I was denied the hotel because it was ‘out of their scope’ and I was denied the repair bill because ‘the shop was not a USAA approved shop’. (but there was no other shop around and I tried telling them that, but they basically told me I was out of luck). Then it took them 2 months to get an appointment for an estimation on the remaining repairs. Once I got that estimation it took another month to get an appointment set up for the repairs (3/23/26). But then when I took my Chevy into the shop to be repaired, they ‘found more damages’ pushing it over the limit and therefore deeming it a total loss. I asked if they could just do the initial repairs and not the extra stuff they found and they said it has to be all or none. So I tried to reject the repairs and get my Chevy back and they denied that option. So I asked them to hold off on pushing the Total Loss through a week; so I could pay off my loan (because I couldn’t afford GAP insurance) and get a salvage title. They said they would but then they still pushed it through, and the next day when I tried to pay off my loan, the lienholder denied it because they received the Total Loss from USAA. I was escalated all the way up to the CEO of claims only to be told ‘oh well, there is nothing we can do’. So I lost my Chevy and had to get a personal loan to pay off that vehicle as well as buy a cheap junk Ford F150.
Then after this, I went into my policy. I took my Nissan Versa out of ‘storage’ because I was going to be forced to drive that vehicle to and from work even though it was not up to par to drive (thus why it was in storage in the first place). I got the email confirmation that the Nissan was taken out of storage. I then removed the Chevy (that they totaled) from my Policy, got the email confirmation. I added the Ford F150, got the email confirmation. I then made changes to my policy for both the Ford F150 and Nissan Versa. I received a quoted amount of $167/month (total for both of them), the first month $154. I clicked accept. I received an email saying congratulations on your changes made (it listed all the changes to the policy but did not list the price that I had agreed to). Then when my bill was sent to me, I was charged $294! I called them up asking why, and I was told they had to prorate the remaining policy of the Chevy (that they totaled out and I didn’t have!). I disagreed and argued with them but was told that nothing could be done. I was then given my next bill for $257! I called them up and they told me they don’t have any record of the quoted amount. I told them I was not paying a penny more than what I agreed to and if they don’t fix it, then I was switching! I got escalated up to the CEO of Auto Policies (completely different CEO) only to be told, they can drop it down to $203 but not what I was quoted for. So I called up the cancelation department on 06/10/26 and cancelled my policy immediately. The Cancelation Representative said I qualified for other discounts that would have dropped it down even further, but the CEOs never mentioned any of it. I told that representative that it was too late. I was done fighting with USAA over everything and I was done being scammed to pay them all more! I was given the confirmation that my policy was cancelled. Then I get a bill on 06/19/26 for a $56 cancellation policy probate plus late fee (because I didn’t pay it by 06/12/26, even though I was never told about the charge until 6/19).
I had also been a member with USAA for almost 10 years, and never received any loyal member discounts or anything like that. When I added my pet insurance a few years back, they increased my policy and then applied the ‘bundle and save’ discount to bring it back down to the original amount (so I never truly got any discounts with that either). And this doesn’t even include the fact that about 4 years ago, my husband was involved in a hit and run, flipping his vehicle on its side with my 4 year old (at that time) daughter. The insurance didn’t even contact me in regards to the medical aspect for my daughter! They simply processed the claim of losing that vehicle behind the scenes! I don’t even know if the claim amount on that one was even accurate, as we were not involved in that process at all.
I recently got in a accident involving a deer. My range rover has $9000 in damage and they told they were going to total my car. This suv was in perfect condition before the accident. When I first contacted them one of the first things he said would I accept it if they totaled my suv. Im a 30 year member. Eldon
Please add me to the class action lawsuit because my 2020 Dodge Charger was stolen twice. The first time they gave me a total lost letter but never proceeded to processing my check and I had gap insurance. Then my car was stolen off the dealership lot and USAA refused to go after the dealership on my behalf. I was a member of USAA and auto insurance policy holder since 2010. I took a 20k hit on the car because I had no choice but to trade it in. This was during the height of the COVID-19 pandemic. USAA has screwed over several military, military family members and veterans. USAA is not a for anyone in the military community. I hope a law firm contacts me.
I am looking for legal counsel, please message me with suggestions for legal representation regarding legal malpractice, bad faith insurance practices, perjury, & insurance fraud. If I make enough noise, maybe someone will listen.
I am exploring civil claims arising from catastrophic injury to my minor child, including loss of consortium, negligent infliction of emotional distress, and consequential economic damages, as well as legal malpractice against prior counsel and insurance bad faith by USAA arising from improper attribution of fault despite contrary evidence.
My daughter, redacted, suffered a catastrophic and ultimately permanent injury, the traumatic amputation of her dominant right arm, as a result of a crash involving a Polaris side-by-side vehicle. At the time of the incident, all three girls involved were thirteen years old, and the vehicle was being operated on public roadways, where such operation by minors is prohibited.
Randy Siers, the owner of the vehicle, did not obtain my permission, nor did I have any knowledge that my daughter was riding in a Polaris side-by-side vehicle, without required safety equipment or helmets, and being operated on public roads. My daughter was not authorized to participate in this activity under any circumstances.
Evidence demonstrates that the vehicle was operated by (redacted) , not by (redacted) as initially and falsely reported. Further evidence shows that Randy Siers had removed required safety equipment from the vehicle prior to the crash. Additionally, (redacted)s parent, Kit Basma, was aware that (redacted) was driving the vehicle at the time of the incident and failed to disclose this fact to law enforcement or insurers.
As a direct result of the crash, my daughter suffered a severe internal traumatic injury to her right arm, in which bone and muscle were violently forced through the skin, resulting in massive tissue damage. She required emergency life-flight transport to Scottish Rite Children’s Hospital. The nature of the injury allowed bacterial and fungal infections to develop within the wound, which ultimately necessitated amputation of her right arm.
My daughter underwent numerous surgeries, including repeated skin graft procedures utilizing tissue harvested from her right thigh, as well as extensive reconstructive and plastic surgeries to manage the amputation site and related complications. At the time of the injury, she was actively training for gymnastics competition, and the loss of her dominant arm was devastating, permanently altering her athletic trajectory, daily functioning, and quality of life.
Both my daughter and I were required to enter therapy as a result of the trauma, and both of us continue to experience residual trauma and PTSD symptoms related to the incident, compounded by the ongoing financial, emotional, and legal stressors that followed.
Despite repeated requests, my former attorney, Mark Mitchell, failed and refused to conduct a meaningful investigation into the identity of the actual driver, failed to pursue liability arising from illegal operation by minors, operation on public roadways, vehicle modification, and safety violations, and failed to challenge demonstrably false statements made to law enforcement and insurance carriers. Meaningful investigation occurred only after I threatened to terminate representation, by which point irreparable harm had already occurred, including the solidification of incorrect liability narratives within insurance records.
Although a settlement of approximately (redacted) was ultimately obtained on behalf of my daughter, counsel collected approximately 31 percent of the recovery and thereafter failed to assist with or protect against the significant downstream consequences of the injury. These consequences included insurance determinations that wrongfully assigned fault to me, resulting in financial harm, loss of employment, severe emotional distress, and long-term economic instability.
I believe the USAA’s conduct constitutes bad faith, including but not limited to misrepresentation of liability, failure to conduct a reasonable and adequate investigation, reliance on known false statements, and unfair claims practices. Despite possessing documentation directly contradicting their conclusions, USAA has refused to correct its records, which continue to inaccurately reflect fault.
Further, during my attempts to correct these inaccuracies, employees of USAA’s litigation team were openly hostile, including yelling at me, dismissing my documentation, and ignoring repeated requests for correction. I have been effectively stonewalled despite comprehensive written proof.
I further believe that my former attorney’s acts and omissions directly and proximately enabled the insurer’s misconduct, by failing to investigate, failing to identify the correct tortfeasor, failing to challenge false reporting, and failing to protect my legal and financial interests once the settlement concluded.
I possess extensive documentation supporting all of the above facts, including communications, records, medical documentation, and evidence demonstrating both insurer misconduct and attorney negligence.
Please add me. I have been a USAA member since 2004. Several accidents, several issues, unfair practices. I was charged for stacked UM coverage without knowledge & even when I only had I vehicle. Thank you.