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.


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

  1. kanisha hunter says:

    please add me

  2. darryl johnson says:

    add me

  3. Lindsay says:

    My car has been in the shop for almost a year after a fender bender. USAA has not assisted at all with advocating for me. A USAA rep told the repair shop the car was paid off, which the shop tried to use as a bargaining chip.

    I think USAA also singles out dependents for different treatment than military officers.

    Can you add Idaho plaintiffs? I’d like to initiate or join a class action against USAA.

  4. Charles G says:

    We had 2 insurance total loss claims that we felt were grossly underpaid. We would love to sit down and explain the situation to someone.

  5. Cee Turner says:

    Please add me! “they” have low balled or held back property claims, creating such a deficit after the mortgage co held on to a part, that it took years to get the work completed, a car accident where I was reared ended and the airbag didn’t deploy, caused a concussion , and initially a broken tooth and an earthquake in my mouth that cost me $15k of just completed veneers and cracks in the rest of my teeth. Failure to pay cost me my smile and ability to chew.

  6. templeton says:

    USAA now just sucks. 30 year member and they low-balled me more than $2500 for an accident that was not my fault, (even after I went to their recommended shop). Cant wait to join any lawsuit against this now Geico-like company…..

  7. Beatrix says:

    Usaa underpaid me after I totaled my vehicle and was very rude.

    1. Elton Sipes says:

      Usaa would not settle my total vehicle loss claim according to my vehicles know value, then a several months later they sent money to my checking account without my permission, thr amount was only 20percent of what my vehicles value.

  8. Sonya d Thornton/ Gipson says:

    i still havent been paid been a member for 11 years still have the paperwok from the 3rd party pls addme

  9. Sonya d Thornton/ Gipson says:

    i still havent been paid been a member for 11 years

  10. Sonya d Thornton/ Gipson says:

    pls add me the hood of my honda pilot fell on my head and the latch went in my skull

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