JACKSONVILLE, Fla.--(BUSINESS WIRE)--USAA insurance companies agreed to pay an average of more than $450 in past-due sales tax to approximately 50,000 Florida auto policyholders who experienced total loss claims, based on plaintiffs' calculations in a class action lawsuit settlement.
The settlement provides for payments of up to approximately $34 million, plaintiffs' calculations show. Notice of the settlement will be sent to more than 70,000 policyholders. Plaintiffs calculate that approximately 70% of these policyholders (approximately 50,000) will recover funds under the settlement if they timely submit pre-filled-in claim forms. USAA also agreed to no longer condition the payment of sales tax on the policyholder first purchasing a replacement vehicle.
Each class member will receive an email and mailing from Settlement Administrator Dahl Administration explaining how to make a claim. Claims can be made by mail or at the website USAAFloridaAutoSalesTaxSettlement.com.
All 70,000 total loss policyholders can submit a claim asking USAA to review their file to determine whether there was sales tax underpayment, and in turn USAA will pay the policyholder 108% of any sales tax that should have been paid.
The 2013 lawsuit claims USAA improperly withheld sales tax from total loss payments to auto policyholders. Class members include present and former USAA Florida policyholders who held auto insurance with a USAA company and were paid by USAA under their policy for a total loss to their automobile between October 13, 2008 and October 15, 2016.
Policyholders will receive payment only if they make a timely claim. Approximately 30% of policyholders with total loss claims received all sales tax due from USAA as part of their total loss, and will receive no payment even if they make a claim.
Plaintiffs are represented by Atlanta law firm Hall & Lampros, LLP, (404-876-8100) and St. Augustine, Fla. firm Avolio & Hanlon, PC (904-794-7005). More information can be found at USAAFloridaAutoSalesTaxSettlement.com. The lawsuit is Chantal Bastian, et al. v. USAA, et al., 3:13-cv-01454-TJC, USDC Middle District of Florida.