USAA agrees to pay $5 million to resolve class-action lawsuit over late fees for auto policies

USAA has reached a $5 million settlement in response to a class-action lawsuit filed by Maryland auto insurance clients. The lawsuit claimed that the San Antonio-based company had violated state laws by not providing adequate coverage for policyholders who were injured in accidents.

The lawsuit, filed in 2018, alleged that USAA did not pay out enough money to cover medical expenses and lost wages for policyholders who were injured in car accidents. The plaintiffs argued that USAA’s failure to provide sufficient compensation was a violation of Maryland state law.

Under the terms of the settlement, USAA has agreed to pay $5 million to resolve the claims made by the Maryland auto insurance customers. The settlement also includes provisions for changes in the way that USAA handles claims involving injuries to policyholders.

USAA has denied any wrongdoing and has stated that it settled the lawsuit to avoid the expense and uncertainty of ongoing litigation. The company maintains that it has always acted in accordance with Maryland state laws and regulations regarding auto insurance coverage.

The settlement is subject to court approval, and a final hearing is scheduled for later this year. If approved, eligible policyholders will receive compensation for their claims. USAA has also agreed to make changes to its claims handling practices to ensure that policyholders receive appropriate compensation for their injuries.

The lawsuit and subsequent settlement have drawn attention to the issue of auto insurance coverage in Maryland and raised questions about whether policyholders are adequately protected in the event of an accident. Some critics argue that insurance companies should do more to ensure that policyholders receive fair compensation for their injuries.

Overall, the settlement between USAA and the Maryland auto insurance customers highlights the importance of holding insurance companies accountable for providing adequate coverage to policyholders. By reaching a settlement in this case, USAA has taken a step towards addressing the concerns raised by the plaintiffs and has demonstrated a commitment to resolving disputes in a fair and equitable manner.