USAA Files Trademark Infringement Lawsuit Against Web Site Chad Hemenway

United Services Automobile Association has filed a federal trademark infringement lawsuit against an online search engine that claims to get consumers free quotes from top insurance companies.

The suit, filed in U.S. District Court in San Antonio, accuses the owners and operators of USInsuranceOnline.com of trademark infringement, false advertising, injury to business reputation and interfering with prospective business, according to the court document.

USInsuranceOnline "presently contains or has contained several false or misleading statements of fact regarding USAA and its insurance products," the lawsuit states. Also named in the suit are those USAA claims are responsible for operating the Web site, Austin, Texas-based All Web Leads, its Chief Executive Officer James Waltrip and President Ryan Patterson.

USAA alleges USInsuranceOnline deceives customers by implying the site is affiliated with licensed USAA agents and that the Web site can provide accurate price quotes for USAA products.

"USAA is not affiliated with, connected with, or associated with (USInsuranceOnline)," the suit says. "Neither USAA nor any of its affiliates, agents or other employees are part of (the Web site's) alleged network of insurance carriers, brokers, and agents."

The reciprocal exchange insurer with about 6.8 million members is seeking a preliminary and permanent injunction against the operators of the online site to prevent it from continuing to use the USAA name. The use of the USAA trademark "is currently diverting existing and prospective USAA customers to (USInsuranceOnline) and damaging USAA's reputation and goodwill," says the lawsuit.

USAA is also seeking a trial by jury and attorneys' fees. The insurer is looking to have the Web site operators barred from purchasing search engine keywords or sponsored links that are tied in to the use of the USAA trademark. Currently, USAA alleges a search of "USAA auto insurance" in a search engine such as Google will produce results for USInsuranceOnline. A BestWire check on March 5 confirmed this to be true. Results were found for USInsuranceOnline under the heading, "USAA Auto Insurance."

In terms of money awards, USAA is seeking triple damages of "all damages sustained and proved by USAA and profits realized by" USInsuranceOnline.

Attempts to reach a spokesperson from USAA could not immediately be reached to comment.

United Services Automobile Association currently has a Best's Financial Strength Rating of A++ (Superior).

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)

Copyright © 2009 A.M. Best Company, Inc. United Services Automobile Association has filed a federal trademark infringement lawsuit against an online search engine that claims to get consumers free quotes from top insurance companies.