Frequently Asked Questions

USAA’s records show that you are (or were) an enlisted servicemember who qualified under California’s “Good Driver” law and had auto insurance with collision coverage from USAA General Indemnity Company for a car in California after December 28, 2017.

The notice you received explains that the Court has allowed (or “certified”) a class action lawsuit that may affect you. You have legal rights and options that you may exercise before the Court holds a trial. The trial is to decide whether the claims made against USAA, on your behalf, are correct. Judge Robert S. Huie of the United States District Court for the Southern District of California is overseeing this case. The lawsuit is Coleman v. USAA, and the case number is No. 21-cv-217.

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This lawsuit is about whether USAA used unlawful business practices by failing to sell insureds, who qualified under California’s “Good Driver” law, an auto insurance policy from the USAA affiliate company offering the lowest rates for that coverage.

Plaintiffs claim that California law requires an insurance company to sell any insured, who qualifies as a “Good Driver,” an auto insurance policy from the company within its common ownership that offers the lowest rates for that coverage.

USAA is made up of four companies that provide auto insurance to current (and former) military servicemembers and their families. Plaintiffs claim that two of USAA’s companies used unlawful business practices that violated California’s “Good Driver” law: (1) United Services Automobile Association (“United Services”), and (2) USAA General Indemnity Company (“GIC”).

Plaintiffs allege that USAA insured current (and former) military servicemembers whose highest pay grade is (or was) E-6 or below through GIC only, but insured current (and former) military servicemembers whose highest pay grade is (or was) E-7 or above through United Services instead. Plaintiffs claim this violated California’s “Good Driver” law because United Services’ rates are lower than GIC’s rates.

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In a class action lawsuit, one or more people called “Class Representatives” (in this case Eileen-Gayle Coleman and Robert Castro) sue on behalf of other people who have similar claims. The group of people suing are a “Class,” “Class Members,” or “Plaintiffs.” The companies they sued (United Services and GIC) are the “Defendants.” In a class action, one court resolves the issues for everyone in the Class—except for those people who choose to exclude themselves from the Class.

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The Court decided that this lawsuit can be a class action and move toward a trial because it meets the requirements of Federal Rule of Civil Procedure 23, which governs class actions in federal courts. Specifically, the Court found that:

• There are around 197,000 potential Class Members who are current (or former) enlisted servicemembers who qualified under California’s “Good Driver” law and had a GIC auto insurance policy with collision coverage for a car in California after December 28, 2017.
• There are legal questions and facts that are common to these insureds.
• The claims of Eileen-Gayle Coleman and Robert Castro are typical of the claims of the rest of the Class.
• Coleman, Mr. Castro, and the lawyers representing the Class will fairly and adequately represent the Class’ interests.
• The common legal questions and facts are more important than any questions or facts that affect only individual Class Members.
• This class action will be more efficient than having many individual lawsuits.

More information about why the Court is allowing this lawsuit to be a class action is in the Court’s Order Certifying the Class, which is available on the “Court Documents” page of this website.

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In a class action lawsuit, a court may appoint a “class notice administrator” to notify the Class Members when the Court allows a case to move forward as a class action, when the Court enters a final judgment, or when the Parties settle the case. The Court has appointed EAG Gulf Coast LLC (formerly “Postlewaith & Netterville”) as the class notice administrator in this case. You can contact the class notice administrator by calling toll-free to 1-(844)-635-0800.

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In the lawsuit, the Plaintiffs complain that USAA engaged in an unlawful business practice that violated a California law requiring insurance companies to sell any insured who qualifies as a “Good Driver” an auto insurance policy from the company within its common ownership that offers the lowest rates for that coverage. Plaintiffs claim USAA issued auto insurance policies in California from United Services or GIC depending on the insured’s military pay grade. Plaintiffs claim this practice violated California’s “Good Driver” law because United Services’ rates are cheaper than GIC’s rates. You can read the Plaintiffs’ Class Action Complaint on the “Court Documents” page of this website.

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USAA denies that it did anything wrong, and says that its practices comply with California law. You can read USAA’s Answer to the Complaint on the “Court Documents” page of this website.

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The Court has not decided if USAA did anything wrong. By certifying this lawsuit as a class action and issuing this notice, the Court is not suggesting that the Plaintiffs will win or lose this case. The Plaintiffs must prove their claims at a trial that will be scheduled in the future.

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The Plaintiffs are asking for an injunction to stop USAA from charging different rates to “Good Drivers” in California based on their military pay grade. The Plaintiffs also want USAA to refund all overcharges related to the allegedly unlawful business practice to all Class Members, and pay all attorneys’ fees and costs from this lawsuit.

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No money or benefits are available now because the Court has not yet decided if USAA did anything wrong, and the two sides have not settled the case. There is no guarantee that Plaintiffs will receive any money or benefits ever. If they do, you will be notified about how to receive or ask for a share.

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You need to decide whether you are affected by this lawsuit.

The Court decided that all current (and former) enlisted servicemembers who qualified under California’s “Good Driver” law and had auto insurance with collision coverage from USAA General Indemnity Company for a car in California after December 28, 2017, are Class Members. Specifically, you are in the Class if you meet this definition:

All enlisted persons who (a) at any time on or after December 28, 2017, purchased or renewed an automobile insurance policy including collision coverage from GIC, (b) qualified as good drivers under California Insurance Code § 1861.025 according to USAA’s records, (c) were not offered a good driver discount from United Services, (d) paid more for that policy than they would have paid in United Services, and (e) at any time in which clauses (a) through (d) have been satisfied, garaged vehicles in the State of California.

A few people who meet this definition are excluded from the Class in Question 13 below.

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If you received this notice, USAA’s records indicate that you qualified as a “Good Driver” under California law. According to California Insurance Code § 1861.025, a “Good Driver” is a person who (a) has been licensed to drive for at least three consecutive years, (b) has no more than one point on their driving record within the last three years, and (c) has no felonies or misdemeanors on their driving record.

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Even if you qualify under the Class definition in Question 11 above, you may be excluded from the Class if you:

(a) are (or were) a director, officer, or employed in a management capacity at USAA or any of its affiliate companies.
(b) are an employee or immediate family member of the Plaintiffs’ attorneys listed in Question 19 below.
(c) are an attorney for the Defendants in this case, or an employee or immediate family member of Defendants’ attorneys.
(d) are a judge (or staff to the judge) assigned to this case.
(e) filed a lawsuit for the claims in this case, and that lawsuit is still pending or was dismissed with prejudice.
(f) request to be excluded by following the directions in Question 16 below.

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If you are still not sure if you are part of the Class, you can get more information by calling the class notice administrator toll-free at 1-(844)-635-0800, by calling or writing to the Plaintiffs’ attorneys using the contact information listed in Question 19 below.

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You don’t have to do anything now if you want to keep the possibility of getting money or benefits from this lawsuit. By doing nothing, you automatically stay in the Class. If you stay in the Class and Plaintiffs receive money or benefits through trial or settlement, you will be notified about how to receive or apply for a share. If you do nothing, you will not be able to sue (or continue to sue) the Defendants in another lawsuit for the same claims in this case, regardless if Plaintiffs win or lose. You will also be bound by all orders and judgments in this case.

If your mailing address changes, please let the class notice administrator know using the contact information in Question 19 below, so that you can be notified if there is judgment or settlement in this case in the future.

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If you don’t want to be a part of this lawsuit, you must exclude (or remove) yourself from the Class, which is also called “opting out.”

To ask to be excluded, you must mail a letter with: (a) your name; (b) your mailing address; (c) a statement that you want to be excluded from Coleman v. USAA; and (d) your signature. You must mail your letter, postmarked by July 25, 2024, to:

USAA Exclusions
P.O. Box 3637
Baton Rouge, LA 70821

You cannot exclude yourself by phone or email.

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If you exclude yourself, you won’t be legally bound by the judgments and orders in this case. This means you may be able to separately sue (or continue to sue) the Defendants for the claims in this case, but you’ll have to hire your own lawyer for that lawsuit and prove your claims separate from this case. If you already separately sued USAA for the same issues in this case and you want to continue that lawsuit, you need to ask to be excluded from the Class in this case by following the instructions in Question 16 above. If you exclude yourself so that you can start (or continue) your own lawsuit against the Defendants, talk to your lawyer soon, because your claims may be subject to a statute of limitations. However, because Plaintiffs are asking for an injunction, any changes to USAA’s practices resulting from this class action may still affect you even if you exclude yourself.

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No. If you exclude yourself, you won’t get to share in any money or benefits the Plaintiffs may receive through trial or settlement in this class action.

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The Court decided that the law firms of Consumer Watchdog of Los Angeles, CA; Mehri & Skalet, PLLC, of Washington, D.C.; and Mason LLP of Washington, D.C., are qualified to represent you and all Class Members in this case. Together, the law firms are called “Class Counsel.” They are experienced in handling similar cases. More information about these law firms and their lawyers, including how to contact them, is below:

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You don’t need to hire your own attorney because Class Counsel is working on your behalf. But if you want your own attorney, you may hire one at your expense. You can ask your lawyer to appear in Court for you if, for example, you do not want Class Counsel to speak for you.

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You won’t have to pay Class Counsels’ fees or costs. Class Counsel will be paid only if the Class receives money. If Class Counsel receives money or benefits for the Class through trial or settlement, they may ask the Court to award them fees and costs. If the Court grants Class Counsels’ request, the fees and costs will be either (a) deducted from any money received for the Class, or (b) paid separately by the Defendants.

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If the Parties do not settle the case and the Court does not later dismiss the case, Class Counsel will have to prove the Plaintiffs’ claims at a trial. The Court has not yet scheduled a trial date, but it will schedule a trial in the future, which will be posted on this website. If you would like to receive updates about this case, register here.

Any trial will take place in the U.S. District Court for the Southern District of California at the Edward J. Schwartz U.S. Courthouse, 221 W. Broadway, Courtroom 3B, San Diego, CA 92101. During the trial, a jury or the judge will hear evidence and decide who is right about the claims in this lawsuit. There is no guarantee that the Plaintiffs will win, or that they will get any money or benefits for the Class.

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No. You do not need to attend any trial in this case. Class Counsel will present the case for the Plaintiffs, and the Defendants will present any defenses. You or your lawyer are welcome to come at your own expense.

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If the Plaintiffs receive money or benefits through trial or a settlement, you will be notified about how to participate. We do not know how long this will take.

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You may speak to one of the lawyers by using the contact information in Question 19 above, or by calling the class notice administrator toll-free at 1-(844)-635-0800. Please do not contact the Court, the Judge, or USAA.

More information is also available within the filings on the “Court Documents” page of this website.

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