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Consumers who insured a leased vehicle under a USAA Michigan auto insurance policy and did not receive the full payment for Michigan sales tax and/or vehicle regulatory fees after the company declared their vehicle a total loss may be eligible to submit a claim for a cash payment from a class action settlement.
United Services Automobile Association agreed to pay at least $647,263.74 to settle a class action lawsuit alleging it failed to pay the full amount of Michigan sales tax and vehicle regulatory fees to certain policyholders for totaled leased vehicles.
Who can file a claim for a USAA settlement payout?
Class members must meet the following criteria:
- They are or were insured by USAA under a Michigan automobile insurance policy which covered a leased vehicle under private-passenger physical damage coverage, including collision and physical damage other than collision.
- They made a first-party claim during the period from Jan. 27, 2015, through March 11, 2026, for a covered leased vehicle that USAA determined to be a total loss.
- They received a total loss payment from USAA for the value of the totaled vehicle that did not include the full amount of the applicable Michigan sales tax and vehicle regulatory fees.
How much are settlement payments?
- Sales tax: Class members can submit a claim to receive 6% sales tax on the value of the total loss vehicle minus the amount USAA already paid.
- Vehicle regulatory fees: Class members can submit a claim to receive a title transfer fee of $15 per vehicle and a vehicle registration fee of $8 per vehicle minus the amount for each fee USAA already paid.
How to claim a class action rebate
To receive a settlement payment, class members can file a claim online or print the PDF claim form to complete and mail to the settlement administrator. Class members with more than one qualifying insurance claim must submit a separate claim form for each claim.
Settlement administrator's mailing address: Marchek Settlement Administrator, c/o Rust Consulting Inc. - 8970, PO Box 2599, Faribault, MN 55021-9599
The claim deadline is Oct. 8, 2026.
Required claim information
- All class members must provide the Claimant ID from the settlement notice they received.
- They must also provide the Insurance claim number and date of loss.
- Legally authorized representatives submitting a claim on behalf of a class member must include supporting documentation, which may include estate documents, power of attorney or a death certificate.
Payout options
- Paper check mailed to the address provided
Settlement fund breakdown
The settlement fund will include:
- Settlement administration costs: To be determined
- Attorneys’ fees and expenses: Up to $174,761.21
- Service award to class representative: Up to $5,000
- Payments to approved claimants: Up to $647,263.74
Important dates
- Exclusion deadline: July 10, 2026
- Final approval hearing: Sept. 8, 2026
- Deadline to file a claim: Oct. 8, 2026
When is the USAA Michigan total loss settlement payout date?
The settlement administrator will issue payments to approved claimants after it completes claim processing and the court grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged USAA did not pay the full amount of Michigan sales tax and vehicle regulatory fees to policyholders who insured leased vehicles under Michigan auto insurance policies and whose vehicles USAA declared total losses.
USAA denied the allegations but agreed to settle to avoid the expense and uncertainty of continued litigation and a possible trial.
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