Car Replacement Assistance...?? Well.. not really.


Dear fellow members,

                                    I am an OIF veteran and have been with USAA for 14 years. Recently my vehicle was stolen while on a weekend vacation. While the claims experience with USAA started out well, it has currently taken an unfortunate turn. When I originally purchased my vehicle, I purchased GAP insurance along with it. (GAP insurance covers ANY negative equity that is left in the vehicle after the primary insurance company pays the current cash market value for the vehicle) I also elected to have Car Replacement Assistance (CRA pays 20% of the actual cash value of the vehicle) along with my comprehensive coverage. (Thank God.. or at least I thought so at the time) When USAA called me with the market value of my car, I noticed that it was higher than what was on the notification letter that was sent to me a day prior. When I asked the claims representative why it was so much higher, she told me that they had applied my Car Replacement Assistance to the loan company's payout because I still had negative equity in the vehicle.. Why would they do this when I already had GAP insurance that would have covered ANY negative equity over the actual cash value of the vehicle?? I was under the assumption (just like everyone else I'm sure) that CRA would be paid to the customer to REPLACE THEIR VEHICLE. She then replied that USAA is legally obligated to pay the lienholder first.. My concern is not about who gets paid first, it is about the misleading and deceitful way USAA is offering CRA. If a customer has their own GAP insurance then why are you applying the proceeds of my car replacement coverage to the loan???? It makes ZERO sense!  By applying my CRA to the loan they are totally ignoring the fact that I have GAP insurance and are deliberately lessening the obligation of the GAP insurance company. Why even call it Car Replacement Assistance when the only people you are assisting are the folks at the GAP insurance company!! I was then notified that I have to return my rental vehicle by 8/31/16. So this is it... I'm out of my rental vehicle without the means to replace my stolen one. I thought that I was covered but I see that USAA is no different from the competitors it claims to be better than. Fellow members and veterans I am just posting this so that you are aware that CRA and USAA will not cover you.. even if you do have GAP insurance. I feel hoodwinked and deceived at this situation and I intend to take it as high as I can for a resolution for all of us. I just closed my USAA Amex card and after 14 years, I am considering State Farm insurance and United Bank for my banking and insurance business.




Thank you for participating in the Member Community, even though we wish it was under happier circumstances. Based on your comments about an on-going claims matter, I have contacted our business experts at USAA and asked that they contact you personally to see how they can help bring this matter to a resolution.

When can I expect a call? I have not received any contact  from USAA since last Thursday and my claim is still open...



Your request for a callback has been submitted to the appropriate area. While I can't guarantee the specialist will be able to make contact today, we will reach out as soon as possible.

OK.. So indirectly I learned from my conversation with a claims manager today that maybe I have not been paying the insurance and CRA coverage for my vehicle long enough before it was stolen for me to receive my CRA payout.. So basically I should have waited longer than 7 months for my vehicle to be stolen... SITUATIONS LIKE THESE ARE OUT OF MY CONTROL!!! So mind you, this is not an argument about paying the CRA in the first place.. it is about paying the CRA TO ME! USAA is paying the SAME AMOUNT regardless of who gets it! So why are you INTENTIONALLY GIVING IT TO THE LOAN COMPANY AND WITHHOLDING IT FROM ME PERSONALLY??? How petty is this??? You are not losing anything by giving us the proceeds of our coverage but you are INTENTIONALLY giving it to the loan company AS A BONUS!!!!!!????? My GAP insurance makes sure that the loan company gets paid ALL OF THE MONEY I OWE OVER THE CASH VALUE OF MY VEHICLE! YOU ARE GIVING THEM A BONUS WITH MY FAMILY'S MONEY!!!!! You're giving our money to the loan company on purpose because we did not have our policy long enough???? It costs you NOTHING MORE to give us the proceeds of our coverage!!! Pettiness!! You are not fooling anyone and the fact that all your reps do is talk about the invisible policy and guidelines all the time actually proves my statements as fact! Why are your "policies and guidelines" not clearly spelled out BEFORE your customer purchases CRA??? What do you have to say for yourselves to disprove my argument?

That's terrible Reviledone83. I hope that USAA can see the error of there ways and resolve your loss to a gain so you can have a vehicle to drive. Take care and God bless.

I am going thru the same thing. My car was totaled 2013 Nissan Murano 11 months old. When I bought the car I got extended warranty and a service warranty so I knew my loan would be upside down so I purchased gap insurance at the dealership. When I added the car to USAA I got car replacement so if anything happened I would at least have a down payment. Instead of that happening they gave the money to the lien holder I had to turn my rental in 3 days later. So I am left with NO down payment, NO car, and a gap insurance policy for NOTHING. All i got from USAA was "sorry"



I have located your claim and will be working with your claims specialist to gain a better understanding of what's going on.  I will request a second set of eyes review your claim as well and ask that they reach out to you within a business (or sooner). 


Same exact thing here. I have been with USAA for nearly if not over 20 years now and to date have never had any real complaints. Thirteen months ago, we got our daughter a used car. Unfortunately she was in an accident earlier this week and they (USAA) decided to total it out. Included in the car loan, we also purchased GAP insurance. Well like you, I see that the amount offered for payout was higher than the retail value of the car. The total loss representative went over it with me and confirmed that the 20% Car Replacement Assistance was included in the amount he told me. I asked "So will the CRA check be a separate check than the payout to the lein holder, or how does that work." The Total Loss Rep explained that they added the 20% to the payout and it will all be paid to the lein holder and any residual would be paid to us. Well like you, I asked the same questions and pretty much got the same response. I even had them transfer me to the policy representatives. We went through my policy and the addendums word for word. And no where in the documentation provided to me does it state that in the event of a loss, the 20% would be included in the amount paid to the lein holder and you get the remainder, regardless if you have GAP coverage or not. 


I have to say, I am VERY disappointed in USAA. Like you, I completely agree that their explanation or the CRA is COMPLETELY misleading. I do not recall seeing this when I originally selected the option, but if you click on the  question mark next to the dropdown for the covereage that states "Help me choose", there it states that the 20% would be paid to the lein holder / bank to payoff the loan and any residual would be paid to you. So unless you are/were contemplating the decision, one would probably never click on the "Help me choose" link. I completely agree with you that their advertised (description) is completely misleading. It states "Car Replacement Assistance (Opens Pop-up Layer)

If your vehicle is declared a total loss, we'll pay you an additional". It does not state that they would pay an additional amount to help pay off the loan, etc... 


This tells me that their first priority is to the lein holders and not their customers/members. I think that if we (the members) show proof of a GAP or Debt Cancelation policy, that the CRA should be paid out as a separate check to the member/customer. Otherwise, they should just rename the covereage and call it what it really is "GAP Reduction Coverage" 


The policy representative I spoke with earlier was also kind enough to provide me with the contact info for the "Executive Resolution Team" as well as the "CEO Member Relations" groups. The rep agreed with me that it does not state that the additional amount would be paid to the lein holder. It just states that the additional amount would be paid.


As I stated in the beginning, I have been with USAA for nearly if not over 20 years. I am not going to make an emotional decision right now, but this situation very well could cause me to look else where for my insurance coverage needs. Especially since my daughter is going to be getting her own policy and we were was seriously concidering moving our home owners insurance to USAA.


I am very disappointed. 


We would like to research your concerns further. I have engaged an insurance specialist who will contact you to review the total loss portion of your claim.  Thank you for your membership and for participating in Member Community.  - Mike