San Diego case alleging USAA overcharges heads to CA Supreme Court

The California Supreme Court will take up a class action lawsuit, originally filed in San Diego by a group of enlisted United Services Automobile Association policyholders who allege they were overcharged by the insurance company.

Arrest and charges

Consumer Watchdog, one of several entities representing the plaintiffs, says around 200,000 enlisted USAA customers were overcharged.

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Proposition 103, which was approved by California voters in 1988, requires that good drivers receive the lowest available rate from insurance companies regardless of the policyholder's rank.

It also allows customers to file lawsuits for Prop 103 violations.

However, a San Diego federal judge ruled that a subsequent bill exempted companies that only insured military personnel from Proposition 103's requirements.

The plaintiffs then appealed to the U.S.

Charges and court proceedings

The lawsuit alleges USAA charged the plaintiffs higher auto insurance prices than officers, in violation of state law.