USAA $647K Total Loss Class Action Settlement

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 their vehicle was declared a total loss, may be eligible to submit a claim for a cash payment from a class action settlement.

United Services Automobile Association (USAA) has agreed to pay at least $647,263.74 to settle a class action lawsuit alleging that it failed to pay the full amount of Michigan sales tax and vehicle regulatory fees to certain policyholders whose leased vehicles were totaled.

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 was determined by USAA 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?

Class members can submit a claim receive the following benefits:

Sales tax: Class members can submit to receive 6% sales tax on the value of the total loss vehicle, minus the amount already paid by USAA.

Vehicle regulatory fees: Class members can submit 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 already paid by USAA.

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

• The Claimant ID from the settlement notice is required to submit a claim online or by mail.
• Insurance claim number and date of loss is required on claim form.
• 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 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?

Payments will be issued approved claimants after the court grants final approval of the settlement and claim processing is completed.

Why did this class action settlement happen?

The class action lawsuit alleged that 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 were declared total losses. USAA denied the allegations, however agreed to settle to avoid the expense and uncertainty of continued litigation, and a possible trial.

Sources

1. Official settlement website FAQ
2. Settlement notice
3. Claim form