The Arevalo v. USAA settlement was a $13,597,625 class action resolution covering Texas policyholders whose total loss vehicle payouts allegedly left out sales tax, title transfer fees, and other replacement costs. All claim, opt-out, and objection deadlines have passed. Payments went out on March 6, 2024. If you filed a valid claim but never received a check, you can still contact the settlement administrator or search state unclaimed property databases.
What the Case Was About
Plaintiffs alleged that USAA breached its auto policies by underpaying Texas insureds on total loss claims. When an insurer totals your vehicle, the actual cash value payout is supposed to include the taxes and fees you would pay to replace it. The lawsuit said USAA either omitted or underpaid three categories: sales tax on the replacement vehicle, sales tax on the optional Car Replacement Assistance (CRA) benefit, and transfer-related fees such as title, regulatory, inspection, and dealer fees.
The suit named United Services Automobile Association and three affiliates: USAA Casualty Insurance Company, USAA General Indemnity Company, and Garrison Property and Casualty Insurance Company.
Who Was Covered
The class was limited to Texas insureds who filed a first-party collision or comprehensive claim that resulted in a total loss payout based on actual cash value, insured by one of the four USAA entities during the relevant class period.
The class period depended on the entity and the type of underpayment:
- Sales tax and CRA sales tax claims: September 30, 2018 through May 30, 2023, across all four entities.
- Fee claims: August 25, 2016 through May 30, 2023 for USAA Casualty and Garrison; September 30, 2018 through May 30, 2023 for United Services and USAA General Indemnity.
One point of confusion worth clearing up: this settlement covers Texas only. Online references sometimes tie it to California because California has its own insurance rule addressing the same underpayment issue, but the Arevalo settlement provides no relief to policyholders outside Texas. A California insured with a similar dispute would need to file a complaint with the California Department of Insurance or pursue a separate claim.
How Much Class Members Received
Payments were individualized based on the original total loss claim, with three components:
- Fees: a flat $62.50 for each class member who submitted a valid, timely claim form.
- Sales tax: 6.25% of the adjusted value of the totaled vehicle, minus any sales tax USAA already included in the original payout.
- CRA sales tax: for class members who carried Car Replacement Assistance, an additional 20% of the sales tax amount, minus any CRA sales tax already paid.
Each payment was reduced by a proportional share of attorneys’ fees, litigation costs, and service awards to the class representatives. The total fund was capped at $13,597,625.
Deadlines and Current Status
Every deadline in this case is closed:
- Opt-out and objection deadline: September 27, 2023.
- Claim submission deadline: December 15, 2023.
- Final Approval Hearing: November 17, 2023. The court approved the settlement.
- Payments mailed: March 6, 2024.
Class members who did not opt out by September 27, 2023 released all legal claims against USAA related to underpayment of sales tax, CRA sales tax, and fees on their total loss payouts during the class period. That release binds you whether or not you submitted a claim form or cashed a check.
If You Filed a Claim but Never Got Paid
Start with the settlement administrator. Email info@texastotallossclassactionsettlement.com and, according to the settlement website, expect a response within three business days. Have your claim details ready, including the name on the policy and the total loss claim number if you can find it.
Settlement checks typically expire 90 to 180 days after issuance. Uncashed funds do not disappear. Under state unclaimed property laws, the administrator eventually turns them over to the state. Texas residents can search the Texas Comptroller’s unclaimed property database. If you have moved since your claim, check the unclaimed property database in your current state as well. There is generally no deadline to recover escheated funds once the state is holding them.