The USAA Car Insurance Claim Process in Chicago, Illinois

While USAA (United Services Automobile Association) is known for serving military members, veterans, and their families, the process of navigating an auto claim is similar in many ways to other insurers, though not without its own challenges.

Read on to find out what USAA auto policies typically cover, how to report a claim, what happens after an accident, and what to do if you run into obstacles. Book a free consultation with our car insurance claim attorneys in Chicago to help you navigate the process and protect your right to compensation.

What Does a United Services Automobile Association Auto Policy Typically Cover?

• Liability Coverage: Covers bodily injury and property damage if you’re at fault in a car accident.
• Personal Injury Protection (PIP): Covers injuries and lost wages for you and your passengers, regardless of fault. Not required in Illinois, but medical payments coverage may be available.
• Comprehensive Coverage: Covers non-crash damage like theft, vandalism, falling trees, hail, riots, and fire.
• Collision Coverage: Pays for vehicle repairs after a crash, no matter who’s at fault. Often required for leased or financed cars.
• Uninsured/Underinsured Motorist Coverage: Helps cover bodily injury and sometimes property damage if an uninsured or underinsured driver hits you.

When Should You File an Auto Claim with USAA?

You should always report a claim to USAA in the following situations:

• You or anyone else suffered injuries in the car accident;
• There was significant damage to someone else’s vehicle or property;
• The cost to repair your own vehicle clearly exceeds your deductible;
• A hit-and-run or uninsured/underinsured motorist was involved;
• The other driver’s identity or coverage status is unclear.

On the other hand, for very minor damage (like a scratch or cracked mirror), and where repair costs are below or near your deductible, it may not make financial sense to file your claim.

However, keep in mind that not reporting certain accidents could violate your policy terms or Illinois reporting requirements under 625 ILCS 5/11-407, especially if injuries or property damage occurred.

If you’re unsure, you can report your auto claim through the USAA app and decide whether to proceed once an adjuster contacts you.

USAA Auto Claims Overview: How the Claims Process Works

To begin, you’ll need to report a claim through the USAA mobile app or website. You’ll be asked to provide details about the accident, who was involved, and the damages. You can upload photos immediately to support your claim.

USAA may offer a photo estimate or refer you to a USAA-approved repair shop for inspection. Once approved, your payment is calculated minus your deductible and issued by direct deposit or check. If repair costs are below your deductible, no payment will be received.

You can choose a USAA network shop, which may include a workmanship guarantee, or your own repair facility. Keep all receipts and documentation.

Understanding Your Deductible in a USAA Auto Claim

A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. It applies to comprehensive and collision coverage, but not liability.

Let’s say your deductible is $1,000 and the cost of vehicle repairs is $3,500. USAA would pay $2,500, and you’d be responsible for the first $1,000. If the total repair cost is lower than your deductible, you won’t receive a payment at all, even if the claim is accepted.

It’s wise to review this before you file your claim, especially for minor damage, to determine whether the claim is financially worthwhile.

What to Do at the Scene of an Accident

• Check yourself and others for injuries. Call 911 if anyone is hurt.
• In Illinois, you must report accidents involving injury, death, or more than $1,500 in property damage. A police report is often required by insurers, including USAA, to support your claim.
• Get the other driver’s name, contact info, license plate, and insurance details. If they’re a USAA policyholder, this will help if you’re the non-policyholder filing a claim.
• Document the accident scene, vehicle damage, road conditions, traffic signs, and any visible injuries.
• Don’t admit fault. Even a casual apology can be misinterpreted. Stick to the facts and let the insurance company determine liability.

What Happens When Your Vehicle is a Total Loss with USAA?

A vehicle is considered a total loss when the cost to repair it exceeds its value, or comes close. In Illinois, insurers typically total a car when repairs exceed 70–75% of its actual cash value (ACV). USAA uses a similar guideline.

If that happens, USAA will pay your car’s ACV (minus your deductible). For example, if your car is worth $9,000 and your deductible is $1,000, you’ll receive $8,000.

You can then use that money to purchase a new vehicle or apply it to your remaining loan balance if you’re still financing through a lease or finance company.

Keep in mind that you can negotiate the valuation if you believe the offer is too low, especially if recent maintenance or upgrades increased your car’s value.

Do USAA Claims Videos Help Show the Process?

If you’ve started a claim, you may come across USAA claims videos while using their website or mobile app. These short clips are designed to walk policyholders through the claims process, from documenting the scene of an accident to choosing a repair shop.

While these videos can help you understand the basic steps to report a claim or navigate the app, it’s important to remember that they are produced by USAA and naturally highlight the process in the best possible light. These are marketing tools as much as they are tutorials.

Filing Non-Policyholder Claims

If you were in a car accident with a USAA-insured driver, you can still file an auto claim with USAA—even if you’re not a member. As a non-policyholder, you have the right to seek compensation if their insured was at fault.

Start by visiting USAA’s third-party claims portal or calling their claims department. Describe what happened, provide the USAA policyholder’s name (if available), and describe the scene of the accident. Be ready to submit photos, a police report, and any damage estimates.

USAA is still obligated to handle your claim fairly, but like any insurance company, delays or disputes can happen. If the process stalls or the offer seems low, a Chicago car accident attorney can step in to protect your rights and negotiate a better outcome.

Online Auto Claims Made Easy & Faster on the App

Whether you’re at home or managing the aftermath of an auto accident, the USAA app simplifies the claims process.

With the app, you can:

• Report a claim in minutes.
• Upload photos of the accident scene, vehicle damage, and documents like the police report.
• Review your repair estimate.
• Track your claim status in real time.
• Schedule repairs with a USAA-approved repair shop.
• Access your policy and deductible information.

This digital tool helps avoid delays during high call volumes, which can cause longer wait times. Still, don’t accept a settlement offer without reviewing it closely—ensure it covers the full extent of your damages.

Potential Challenges and Delays in the USAA Claims Process

USAA promotes a smooth, app-driven experience—but in reality, auto claims don’t always go as planned. Many Illinois drivers report delays, poor communication, or low settlement offers, especially when trying to repair their vehicle or recover from injuries.

Sometimes these issues stem from high call volumes after weather-related events. Other times, internal procedures or strict claim review systems slow things down. Even if you report a claim and upload documents promptly, your case can still stall, especially if the adjuster is slow to respond or disputes the extent of the damage.

Why Might USAA Be Stalling on Your Auto Claim?

USAA may delay communication to pressure you into accepting a lower settlement offer, especially if you’re dealing with vehicle repairs, lost wages, or medical bills. The longer the wait, the more likely you are to settle out of frustration.

Delays can also weaken your auto claim—evidence fades, witnesses become harder to reach, and your memory of the accident may lose detail. Some of these slowdowns may stem from internal procedures or company policies during high-volume periods, like after major storms.

Common Tactics Used by USAA Adjusters

USAA adjusters may use tactics that slow the claims process or reduce payments. A common one is requesting documents one at a time instead of providing a full list, dragging things out, and increasing frustration.

They may also go silent for days or weeks, or question the seriousness of your injuries, even with medical records in hand. Initial settlement offers are often low, based on software that may undervalue repairs or bodily injury in places like Chicago, where real costs are often higher.

The Importance of a Recorded Statement (and Why to Be Cautious)

During the claims process, a USAA adjuster may request a recorded statement about the accident. While this may seem routine, it’s important to understand how these statements can be used against you.

You’ll be asked for details about the scene of the accident, your injuries, and vehicle damage. But even casual remarks—like saying you “weren’t really hurt”—can later be used to downplay your condition and reduce your auto claim.

To protect yourself, avoid giving a recorded statement without first speaking to a car accident attorney, especially if fault is unclear or your injuries are still developing.

Dealing with Low Settlement Offers from USAA

USAA’s first offer is often lower than what your auto claim is worth. These low settlement offers rely on internal tools that may underestimate repairs, medical treatment, or the long-term effects of your injuries.

While accepting a quick payout may feel convenient, it usually waives your right to pursue more. Once you sign a release, your claim is closed.

Before agreeing, compare the offer to your vehicle’s actual cash value, medical bills, and other losses like lost wages. If it falls short, you can negotiate—or have a car accident attorney do it for you.

USAA and Uninsured/Underinsured Motorist Claims

Many USAA members assume uninsured or underinsured motorist (UM/UIM) claims will be easier since they’re dealing with their own insurance company, but that’s rarely the case.

Even though UM/UIM coverage is part of your auto policy with USAA, the company still treats it like any other claim. They may dispute your injuries, downplay property damage, delay processing, or offer less than your vehicle’s actual cash value.

You might also be asked for a recorded statement, which can be used to challenge your version of the accident.

The bottom line is that being a USAA policyholder doesn’t guarantee fair treatment. These claims are often just as tough—and sometimes tougher—than third-party claims, especially without legal help.

Steps to Take if USAA is Delaying or Denying Your Claim

If USAA is delaying or denying your auto claim, take action quickly—delays can jeopardize your right to financial compensation for injuries, repairs, and other losses.

Here’s what to do:

• Document everything: Save emails, note phone calls, and track adjuster names and dates.
• Follow up in writing: Request updates via email to create a paper trail.
• Request a written explanation for any denial or delay.
• File a complaint with the Illinois Department of Insurance if you’re being treated unfairly.
• Contact a Chicago car accident attorney to evaluate your claim and step in if needed. If USAA is acting in bad faith, legal support can make all the difference.

How a Chicago Car Accident Lawyer Can Help with Your USAA Claim

An attorney acts as your advocate throughout the entire claims process, starting by handling all communications with USAA so you no longer have to deal with repeated follow-ups or adjuster tactics. Your lawyer will gather the right documentation, challenge unreasonable offers, and push for the fair compensation you’re entitled to.

If negotiations fail, your attorney can file a lawsuit to hold USAA accountable. In some cases, if USAA has acted unreasonably, your lawyer may also pursue a bad faith claim, arguing the company violated its legal obligation to handle your auto claim honestly and promptly.

With legal support, you’re no longer relying on USAA’s internal processes. You’re backed by someone who knows Illinois law, understands how insurers operate, and is fully committed to protecting your rights.

Filing a Lawsuit Against a USAA Insured Driver

If liability is disputed, if your injuries are serious, or if the settlement offer is unreasonably low, litigation may be the only way to recover full compensation. Filing suit doesn’t automatically mean you’ll go to trial—many cases still settle—but it does put legal pressure on USAA to take your auto claim seriously.

Keep in mind that USAA will provide legal counsel for its policyholders, so you should never attempt to go through this process alone. A Chicago car accident attorney will build your case, represent your interests, and negotiate on your behalf—whether inside or outside the courtroom.

USAA Insurance Auto Claims FAQ

How Long Does a USAA Claim Take To Settle?

Most auto claims are settled within a few weeks. However, more complex cases—such as those involving serious injuries, disputed fault, or total losses—may take several months.

What if I Disagree With USAA’s Assessment of Fault?

You don’t have to accept it. Submit additional evidence like photos, witness statements, or a police report. If the dispute continues, a car accident attorney can challenge the determination on your behalf.

Can USAA Deny My Claim Even if I’m a Policyholder?

Yes. They can deny a claim due to lack of coverage, missing documentation, or if they find you at fault, even for uninsured or underinsured motorist claims.

How Can I Obtain a Copy of My Auto Policy With USAA

Log in to your account on the USAA website or app. There, you can view your deductible information, review coverage limits, and download your official policy documents.

Contact Our Chicago Car Accident Attorneys for a Free Consultation

If you’re struggling with a USAA auto claim—whether it’s delayed, denied, or undervalued—Rosenfeld Injury Lawyers is here to help. Our experienced Chicago personal injury attorneys will help you navigate the claims process, fight back against unfair treatment, and recover the compensation you’re entitled to under Illinois law.

We understand how property and casualty insurance companies like USAA operate. From challenging low offers to investigating potential bad faith conduct, we’ll take over communication, build your case, and—if needed—file a lawsuit on your behalf.We offer a free consultation so you can tell us what happened. There are no upfront fees, and we only get paid if we win your case. Call (888) 424-5757 or fill out our online form.

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.