USAA is a major player in the car insurance market in Maryland and around the country. The idea behind this company is to offer insurance to people in the military that are serving or have served and their families. The company is based in San Antonio, Texas and all of their motor vehicle collision claims adjusters appear to be based there.
This carrier plays up its' military connection whenever possible, sponsoring, for example, the Army-Navy game every year. It is easy, based on the way they pitch it, for USAA to believe that it is some non-profit company that serves the military. USAA was the 11th most respected company in the country in 2017 according to a Harris Poll.
The reality is that they are an insurance company, and their owners receive a profit, bringing in over $20 billion in revenue. Their executives are paid like the Fortune 100 (36th) company they are. USAA's CEO made at least $5.28 million last year. Its employees do well too. In 2018, USAA employees were told they would receive a bonus of 16.2 percent of their annual salary.
What's the point of all of this information in the context of looking at USAA claims? A part of their sales pitch is that you can trust this insurance company because they are not a real for-profit company. But let's call a spade a spade: their CEO is making over $5 million a year.
This is a corporation fighting like any other to earn money. Battling in the trenches with them tells our car accident attorneys that they are like every other insurance company when it comes to trying to pay victims less than the full value of their claim.Settlement with USAA in Car Accident Cases
Our lawyers find it difficult to make blanket generalizations about how reasonable USAA is for settlement purposes. Some insurance companies you can expect to be fair; others you know will not be fair. USAA is a different animal. It is hard to predict in an individual case whether it will be reasonable because, in spite of its reliance on computer-based case evaluation software, values of claims seem to vary more widely by adjuster than most insurance companies.
USAA is more willing than some of the major insurance companies to dramatically increase their offers after a lawsuit has been filed. USAA is not the only insurance company that does this. But with this insurance company, if you don’t settle the case right after the lawsuit is filed, you are probably less likely to settle the case – if it settles at all – until the settlement conference right before trial.
We don’t know exactly why this is, but it is hard not to notice the obvious: its lawyers, as discussed below, are paid by the hour. But one thing is for sure: USAA does not like to take cases to trial. The last reported verdict involving USAA that we could find was in 2012. Our last Circuit Court case involving USAA was in 2007 (media article on that case).
This is not the only reason why case value increases after a lawsuit is filed. The value of all accident insurance claims increase as a trial date gets closer because insurers take a more critical look at their defense of the case. They see the real quality of the accident victim’s injury claim. More times than our lawyers can count, insurance companies will stipulate to liability before trial after spending over a year denying the claim was their driver’s fault.
- Tips on how to negotiate USAA
- NEW: Answers to common victim questions about resolving accident cases this insurance company
USAA, like many insurance companies, uses a computer-based program, Colossus, to assist in placing an amount of money on an accident claim to compensate the victim. It evaluates the victim’s medical records and bills and decides how much treatment it thinks was necessary for the crash and what the fair value is for (1) the medical treatment, (2) past or future wage loss and (3) the victim’s pain and suffering. This company, like most insurance companies, typically undervalues all of these categories before a lawsuit is filed.
- Review sample USAA settlements and verdicts
Among the major Maryland car insurers, this insurer is the only one that has eschewed the modern paradigm of having in-house counsel (at least in Maryland). Instead of having attorneys that are company employees defend car crash suits brought against its insureds, it hires a Maryland attorney in each case to defend individual tort suits.
Whatever the basis for this economic decision, USAA certainly spends more money - per suit filed - defending personal injury lawsuits than the other major insurance companies in Maryland. Do they consider litigation costs more than the other major insurance carriers with in-house counsel? Based on our experience, they probably do. This may be one of the reasons as we discuss above; this insurer is willing to pay more after suit is filed. These companies do not start paying their attorneys until after a plaintiff's lawsuit is answered.
In Maryland, it is frequently defended by Moore & Jackson (Towson), Law Offices of Frank Daly (Hunt Valley), Law Office of J. Thomas Caskey, Law Office of Jeffrey D. Raden (Silver Spring) and Myers, Rodbell & Rosenbaum (Riverdale/Gaithersburg). This is, by and large, a pretty good group of insurance defense lawyers.Is USAA a Good Insurance Company to Bring a Claim Against?
Our attorneys would not pick USAA as a model defendant by any stretch. This company has stubbornly defended many claims that we thought should have been settled sooner for a price at which we later arrived.
Nothing is gained by going through the litigation process for the sake of going through the litigation process. But, as mentioned above, USAA will sometimes surprise you by offering a reasonable value to settle the action out-of-court without the need for filing a lawsuit. It depends on the type of case, the jurisdiction, the adjuster handling the claim, and the nature of the injuries.
Based on our experience with this insurer and from looking at jury verdicts against it, it almost seems that this insurer is more likely to take a case to trial against its own insured making an uninsured or underinsured motorist claim than it is when a third party is making a claim against them.
Why would this be? In Maryland, plaintiffs are largely capped at the policy limits in uninsured motorist cases. If the auto insurance company takes a verdict more than the policy limits, it may be liable for the entire verdict. USAA, by the way, would strongly disagree with the assertion that it treats its own policyholder worse than those that make claims against their insureds. We are not saying it is a conspiracy against their insureds. But the decreased economic economic exposure in uninsuerd motorist cases might lead it down this path.Who Are Auto Injury Solutions?
Auto Injury Solutions is a third party adjuster that USAA used to outsource some of it claims review work. Most of their work for this carrier is with med pay or personal injury protection. But we just settled a case with them recently where they handled the bodily injury claim. There are not the worst third party adjusters by any stretch. Still, they are awful (if that makes sense).Our Lawyers Can Help You with Your Accident Claim Against USAA
Our law firm has handled hundreds of auto accident claims involving USAA in Maryland and has defeated it at trial many times (see below for a newspaper account of one of our victories against it). If you have been hurt, call us at 800-553-8082 or get a free on-line claim evaluation and consultation.
- Sample USAA PIP Application
- Valuing Traffic Accident Claims (how much is your case worth?)
- Handling Claims Without Counsel (tips for personal injury victims)
- Handling Your Property Damage Claim (tips for auto accident property damage claims)
- Sample Demand Letter (letter to insurance company for compensation by settlement)
- Personal Injury Frequently Asked Questions