Jon Styf  |  January 2, 2024

Category: Insurance
Close up of USAA signage on a building, representing the USAA class action lawsuit.
(Photo Credit: Tada Images/Shutterstock)

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.


Don’t Miss Out!

Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!


Read About More Class Action Lawsuits & Class Action Settlements:

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

135 thoughts onUSAA class action alleges company uses third party to unfairly reject, underpay claims

  1. Peter C. says:

    For the world I don’t understand how companies like USAA are licensed in the State of Pennsylvania and other states to sell their shoddy insurance products to unsuspecting people and cause so much harm. I guess we have to blame our detached, disinterested politicians which sit in state assembly’s with very little governing capability or interest. Millions of underinsured motorists on the road driving like maniacs and all of our law creating and law enforcing institutions AWOL.

  2. Peter C. says:

    Was t-boned at light controlled intersection,Jan.22/2024, by USAA insured driver in Upper ST.Clair,PA. USAA accepted responsibilty but refused repair. USAA made unilateral decision to total vehicle without ever looking at it. Insisted through COPARTS their partner in crime to take immediate possession of car. USAA undervalued my 2016 Toyota Camry by $ 5000. After big fight they came up by $ 2600. I wanted the car repaired, the cost was $ 10500, they refused. The salvage buy-out figure jumped to almost $ 4000 and I still wound up $ 3000 short after the settlement figure of $7500 which is still not paid for. USAA and COPARTS are conspiring to legally steal cars and in many cases they fix them up and sell them. A well thought out “legal” criminal enterprise. I am interested to join a class action suit against both USAA and COPARTS.

  3. Theodore M says:

    add me as well. USAA is refusing to put OEM parts on my vehicle and they Tell me after market parts have been safety crash tested. Yet they tell me they cant send any documents backing that statement up. the 3rd party they use for Estimate has not idea what they are looking at originally told me the damage was 6l when the shop I took it to that they recommended said it will be closer to 10-12k

  4. Joiy Holder says:

    Looking for a lawyer

    1. Jasmine says:

      Hit in the back as I waited at stoplight. Got police report, pictures ect. Had to go to the Er and but couldn’t get any follow up treatment bc USAA quickly closed my claim.

  5. john j shelton says:

    Add me. My low mileage no accident vehicle hydroplaned then hit guardrails on the interstate. The body shop and USAA said it was totaled. Claims is purposely under valuing it by only using vehicles with diminished value when doing a market evaluation. On their most recent comparison the first 3 vehicles had 154,430, 135,823 and 132,321 miles. Mine had less than 88,000 actual miles. Also, most if not all, on their list had had accidents. They are pushing me to accept a payoff that is well below (thousands) the true market value.

  6. Necie Johnson says:

    In the State of Texas, USAA had denied $100K of UIM/UM coverage and I am their client. My expenses exceeded the limits and they still REFUSE to write that check. If there is a class action anything, I’d like to be a part of it! After 25 years, I’m SICK of them!!!!

  7. Jeffery Borders says:

    USAA has been denying my personal injury and property damage claim for 7 months now even with me having the police report showing that their customer is at fault for rear ending me

  8. Sheena Percival says:

    id like to see if my claim qualifies. went from 6k repair to copar emailing a title reassignment without even speaking to adjuster 1st to 8k in repairs estimate, same partnered shop, no work done, trying to total

  9. L says:

    Add me, currently dealing with them after being rear ended and I have uninsured.

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.