Is USAA messing up my car title on purpose or what…?

Back in July 2023, I filed a claim with USAA for hail damage on one of our cars. They said the damage was more than the car’s value, so I decided to keep it. I asked if I needed to get a salvage title, and they told me that my state doesn’t need one for hail damage-only claims.

Fast forward to September 2024, I tried to transfer the car title to my daughter, and the local title office said I couldn’t because of a legal hold (ORSAL - Owner Retained Salvage). They said I had to mail in forms, the title, and a fee to request a salvage title. I waited 6-8 weeks and then got a rejection letter saying they don’t issue salvage titles for hail damage. Instead, USAA needs to remove the legal hold they put on the title by mistake.

I’ve been going back and forth with USAA for two months now, but nothing has been fixed. The car is just sitting there—I can’t drive it, sell it, or even give it to my daughter because of this issue. Hiring a lawyer costs more than the car is worth, so I’m stuck either waiting on USAA or scrapping the car.

I filed a complaint with the state’s insurance department. They’ve contacted USAA, but it’s been 45 days, and I’m still not getting anywhere. Has anyone else dealt with something like this with USAA or any other insurance company?

Edit for more details:

USAA admits the legal hold shouldn’t be there, but they haven’t removed it even after two months. The DMV and the insurance department both agree that it’s USAA’s mistake. The insurance department hasn’t closed my complaint yet and says they’re still pushing USAA to fix this.

USAA keeps saying, “We’re working on it,” but nothing is happening. I would post the letter the state sent, but I don’t want to share personal details, including which state I’m in.

I’ll update this once it’s resolved.

Maybe it’s time to get a lawyer involved. Looks like you’ve already done everything you could.

I don’t think the insurance department is going to do anything. It’s been 45 days, and they usually handle things faster. This sounds more like an issue with the state than USAA. I’ve seen this happen with total loss cases.

@Tanner
Faster? What are you even talking about? That’s not how this works.

This sounds like something the state needs to handle, not USAA.

Darian said:
This sounds like something the state needs to handle, not USAA.

That’s not right. My state doesn’t require a salvage title for hail damage.

Kimberly said:

Darian said:
This sounds like something the state needs to handle, not USAA.

That’s not right. My state doesn’t require a salvage title for hail damage.

The insurance department hasn’t done much because this doesn’t fall under bad faith for USAA.

@Darian
I already mentioned that the insurance department contacted USAA and sent them a letter saying they need to fix it.

Kimberly said:
@Darian
I already mentioned that the insurance department contacted USAA and sent them a letter saying they need to fix it.

The state doesn’t do stuff like that. If there was bad faith, they would’ve acted by now. It’s been 45 days.

@Darian
That’s your opinion.

Kimberly said:
@Darian
That’s your opinion.

It’s not an opinion. I work in this industry, so I know how it works.

Darian said:

Kimberly said:
@Darian
That’s your opinion.

It’s not an opinion. I work in this industry, so I know how it works.

Actually, the state does send inquiries to insurance companies. Depending on the case, they might ask for the claim file, what action will be taken, and sometimes there’s back-and-forth communication that can take months. I also work in this industry.

If your state has laws like that, it’s not USAA’s fault. If the loan was paid off and the car is a total loss, it’s supposed to get a salvage title. USAA didn’t mess this up—you kept the car knowing it was totaled.

@Kit
That’s wrong. My state doesn’t require a salvage title for hail damage total losses.

Kimberly said:
@Kit
That’s wrong. My state doesn’t require a salvage title for hail damage total losses.

Are you in Texas?