USAA insurance total loss sales tax class action settlement

USAA agreed to a class action lawsuit settlement to resolve claims it failed to include sales tax in total loss payments to Ohio policyholders.

The settlement benefits Ohio USAA policyholders who submitted a total loss claim to United Services Automobile Association, USAA Casualty Insurance Co., USAA General Indemnity Co. and/or Garrison Property and Casualty Insurance Co. This includes class members who had CRA coverage and who retained a salvage title. 

Class periods for the USAA settlement vary depending on insurance company and claim type, as follows:

• For all policyholders:
  • Garrison: Sept. 16, 2005, to July 22, 2022
  • USAA CIC: Oct. 26, 2012, to July 22, 2022
  • USAA: Nov. 5, 2013, to July 22, 2022
  • USAA GIC: Feb. 21, 2014, to July 22, 2022
• For policyholders with CRA coverage:
  • Garrison: Feb. 21, 2014, to July 22, 2022
  • USAA CIC: Oct. 26, 2012, to July 22, 2022
  • USAA: Feb. 21, 2014, to July 22, 2022
  • USAA GIC: Feb. 21, 2014, to July 22, 2022
• For policyholders who retained a salvage title:
  • Garrison: Feb. 21, 2014, to July 22, 2022
  • USAA CIC: Oct. 26, 2012, to July 22, 2022
  • USAA: Feb. 21, 2014, to July 22, 2022
  • USAA GIC: Feb. 21, 2014, to July 22, 2022

USAA is an insurance company that offers automotive insurance and other insurance products. According to a class action lawsuit, USAA fails to pay Ohio policyholders sales tax on total loss claims.

Plaintiffs in the total loss class action lawsuit say that, under Ohio state law and policy terms, USAA must compensate policyholders for sales tax on the actual cash value of their total loss. By denying policyholders these funds, USAA allegedly caused financial injury.

USAA hasn’t admitted any wrongdoing but agreed to pay an undisclosed amount as part of a class action settlement to resolve these allegations.

Under the terms of the USAA settlement, class members can receive various levels of compensation based on their circumstances. 

All class members can receive reimbursement for the Ohio sales tax rate of 5.75% on the actual cash value of their total loss. This number will vary widely depending on the value of class members’ vehicles determined during the total loss claims process.

Class members who had CRA coverage for their policy can receive an additional 20% of the Ohio sales tax rate on top of their original 5.75% sales tax reimbursement. Class members can collect an additional $20 if they retained a salvage title for their total loss and were not compensated for the Ohio salvage title fee.

The deadline for exclusion and objection was Oct. 6, 2022. 

The final approval hearing for the USAA settlement is scheduled for Dec. 5, 2022.

In order to receive settlement benefits, class members must submit a valid claim form by Jan. 4, 2023.

Who’s Eligible

Ohio USAA policyholders who submitted a total loss claim to United Services Automobile Association, USAA Casualty Insurance Co., USAA General Indemnity Co. and/or Garrison Property and Casualty Insurance Co. This includes class members who had CRA coverage and who retained a salvage title. 

Class periods for the USAA settlement vary depending on insurance company and claim type.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

01/04/2023

Case Name

Final Hearing

12/05/2023

Settlement Website

TotalLossesTaxSettlement.com

Claims Administrator

Cavallaro v. USAA
c/o JND Legal Administration
PO Box 91349
Seattle, WA 98111
info@TotalLossesTaxSettlement.com
844-202-9487

Class Counsel

Andrew Shamis
SHAMIS & GENTILE PA

Scott Edelsberg
Christopher Gold
EDELSBERG LAW

Stuart Scott
Kevin Hulick
SPANGENBERG SHIBLEY & LIBER LLP

Edmund Normand
Jacob Phillips
NORMAND PLLC

Rachel Dapeer
DAPEER LAW

Defense Counsel

Rodger Eckelberry
BAKER & HOSTETLER LLP