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The California suit alleged that USAA’s subsidiaries offered lower-quality insurance while charging higher base rates for auto insurance than USAA itself. (Credit: Tada Images/Adobe Stock)Insurer USAA has defeated a California class action suit accusing them of discriminating against enlisted military personnel and veterans. The class action, which has been pending for four years, claimed the carrier relegated enlisted members to USAA General Indemnity Co., one of the insurer’s subsidiaries.
The class action alleged that the subsidiary offered lower-quality insurance while charging higher base rates for auto coverage than USAA itself. However, current and former military officers were able to purchase policies with the main carrier, United States Automobile Association (USAA).
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