USAA Michigan Total Loss Settlement: Who Gets Paid, and by When
Michigan charges 6 % sales tax plus title and registration fees when a vehicle changes hands. A class action alleges USAA left those out of the payout when it declared a leased vehicle a total loss — so the check covered the car but not what it costs to replace it.
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Reviewed by Leonard Goldberg, Editor · Last updated
What the lawsuit says
The court-authorised settlement website states the allegation plainly: USAA „did not pay the full amount of Michigan Sales Tax and/or Vehicle Regulatory Fees to people who insured their leased vehicle under a Michigan auto policy issued by USAA and whose vehicle was declared to be a total loss.“ In Michigan that is 6 % sales tax on the vehicle’s value, a $15 title transfer fee and an $8 registration fee. On a $20,000 vehicle the tax alone is $1,200 — the gap between a payout that covers the car and one that covers replacing it. USAA denies it did anything wrong and maintains it complied with Michigan law and its policies; it agreed to settle to avoid the cost and uncertainty of continued litigation.
Case Details
Marchek v. United Services Automobile Association, Case No. 1:21-cv-00087, U.S. District Court for the Western District of Michigan (filed 27 January 2021; an appeal ran at the Sixth Circuit as No. 23-1908). Administration by Rust Consulting, Marchek Settlement Administrator, P.O. Box 2599, Faribault, MN 55021-9599, telephone 800-598-3078. Official site: MarchekSettlement.com.
Where the case stands
Who is in the class
The settlement class, quoted from the court-authorised website, is people who had a leased vehicle insured under a Michigan auto insurance policy issued by USAA, whose vehicle was totaled in an auto accident, who submitted a claim under their comprehensive or collision coverage from January 27, 2015 through March 11, 2026, and who did not receive the full payment of Michigan Sales Tax and Vehicle Regulatory Fees.
Two words in there do most of the work. Leased: an owned vehicle is a different tax situation under Michigan law and is not in this class. Totaled in an auto accident: a vehicle written off after theft, flood or fire is outside the definition as written.
What a claim is worth
USAA will pay up to $647,263.74 in total claim payments. That is a small fund, which usually means a narrow class rather than small individual cheques: at 6 % of vehicle value, a single $25,000 vehicle carries $1,500 in tax alone.
Class counsel will ask the court for fees and expenses of up to $174,761.20 and a service award of up to $5,000 for the class representative. If approved, USAA pays those separately and apart from the payments to class members — they do not come out of the $647,263.74.
How this case got here
- 1
January 27, 2015 — the class period opens
The class reaches back six years before the complaint, which is Michigan’s limitation period for a written contract claim. An insurance policy is a contract, and that is what sets the date.
- 2
January 27, 2021 — the complaint is filed
Marchek v. United Services Automobile Association is filed in the U.S. District Court for the Western District of Michigan as case 1:21-cv-00087.
- 3
2023 — the case goes to the Sixth Circuit
An appeal runs at the U.S. Court of Appeals for the Sixth Circuit under No. 23-1908. Appeals are the usual reason a case like this takes five years rather than two.
- 4
March 11, 2026 — the class period closes
Claims filed after this date are outside the class. The end date is normally fixed when the parties reach agreement in principle.
- 5
July 10, 2026 — opt-out and objection deadlines (passed)
Both dates have gone by. Anyone who did not opt out is bound by the settlement whether or not they file a claim.
- 6
October 8, 2026 — the claim deadline; hearing September 8, 2026
The Final Approval Hearing comes first, on September 8, 2026 at 10 a.m. Eastern, but claims stay open until October 8, 2026. Filing a claim is the only way to get a payment.
How to tell the real settlement from an imitation
Settlement notices attract imitators, and a total-loss case is attractive to them because the recipients have already had a bad month. Three things separate the real process from the rest.
The real site is MarchekSettlement.com, run by Rust Consulting
Court-appointed administrators do not use lookalike domains and do not text. If a page asks for your bank login or a fee to „release“ your payment, it is not this settlement. The administrator’s published number is 800-598-3078.
Nobody has to pay to file
A claim form was enclosed with the notice, and filing costs nothing. No court-approved administrator charges a filing fee, and none needs a payment from you before sending money.
The class is narrow — and that is a checkable fact
Leased vehicle, Michigan USAA policy, totaled in an accident, claim between January 27, 2015 and March 11, 2026. Anyone telling you that everyone with USAA insurance qualifies is either guessing or selling something. Your own claim paperwork settles it.
Questions people actually ask
My car was owned, not leased. Am I in this?
No. The class as written covers leased vehicles only. Michigan treats the tax on a lease differently from the tax on a purchase, and the settlement follows that line. Owned-vehicle total-loss claims have been the subject of separate cases against other insurers.
How much will I get?
The full amount of Michigan sales tax and vehicle regulatory fees that USAA did not already pay you — 6 % of the vehicle’s value, plus a $15 title transfer fee and an $8 registration fee. It depends on your vehicle, so no honest source can give you a single number. The settlement website says the same: individual payments are not known yet.
I missed the July 10 opt-out date. Does that matter?
Only if you wanted to sue USAA separately over these claims — that option is gone. It does not affect your claim: you can still file until October 8, 2026, and being in the class is what makes you eligible in the first place.
When would money actually arrive?
Not before the Final Approval Hearing on September 8, 2026, and only if the court approves the settlement and that approval becomes final. If anyone appeals, payment can be delayed by months. Any site promising a payment date before then is guessing.
Do I need my old paperwork?
It helps. The administrator works from USAA’s own claim records, so a claim number or the date of loss makes matching straightforward. If you no longer have anything, the notice you received carries an identifier — and the administrator’s line is 800-598-3078.
Why is the fund only $647,263.74?
Because the class is narrow: leased vehicles only, one state, one insurer, and only where the tax and fees were not already paid. A small fund is not the same as a small payment — the tax on a single $25,000 vehicle is $1,500.
Does this mean USAA broke the law?
No, and the settlement does not say so. USAA denies any wrongdoing and maintains it complied with Michigan law and its policies; it agreed to settle to avoid the cost, delay and uncertainty of continued litigation. A settlement resolves a dispute; it is not a finding against anyone.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.