$647,000 USAA Michigan auto insurance class action settlement

USAA has agreed to a $647,000 class action settlement to resolve claims it failed to pay full sales tax and regulatory fees on leased vehicles that were totaled and insured under a Michigan automobile insurance policy.

The USAA settlement benefits Michigan USAA policyholders who made a first-party claim between Jan. 27, 2015, and March 11, 2026, for a leased vehicle that USAA declared a total loss and whose payout did not include the full amount of applicable sales tax and vehicle regulatory fees.

According to a class action lawsuit, USAA failed to pay full sales tax and regulatory fees on leased vehicles that were determined to be total losses. Plaintiffs in the case say that USAA is required to pay these costs under Michigan law.

USAA is an insurance company that provides coverage for military members, veterans and their families. The company offers a variety of insurance policies, including auto insurance.

USAA has not admitted any wrongdoing but agreed to a $647,263.74 class action settlement to resolve the allegations.

Under the terms of the USAA auto insurance settlement, class members can receive payments for sales tax, title transfer fees and vehicle registration fees.

Class members can receive Michigan’s 6% sales tax on the value of their total loss vehicle as found in USAA records, to the extent this amount was not already paid by USAA.

Class members can also receive a title transfer fee of $15 per vehicle and a vehicle registration fee of $8 per vehicle, to the extent these fees were not already paid by USAA.

The deadline for exclusion and objection is July 10, 2026.

The final approval hearing for the USAA Michigan auto insurance settlement is scheduled for Sept. 8, 2026.

To receive settlement benefits, class members must submit a valid claim form by Oct. 8, 2026.

The USAA settlement benefits Michigan USAA policyholders who made a first-party claim between Jan.