Not sure what the specifics of the accident were, but car seats are rarely damaged unless the accident is major, which may very easily total the car. If the car wasn't totaled, which certainly sounds like the case, then it seems unusual to have an accident serious enough to damage the seats. Unusual, but not impossible. Maybe that's the reason for the denial.

I personally had no issues when one of their insured drivers hit my car. I waited for the police report, which clearly stated the other driver was at fault, and I was promptly paid by them for the damage to my vehicle. I didn't have to file anything through my insurance and they were very easy going about the whole thing.

They sent me to the only authorized repair center within 200 miles, then the repair center left my car outside in the rain and filled with water for two months), then USAA fought me over my demands to have the car replaced. Only for the repair shop to have an unlicensed tech work on the car and do 80k in damage due to his failed welding / repairs.. It took 9 months to get that sorted out and USAA was horrible the whole time. I couldn't believe it.

Previously I had an M3 that had the bumper ripped off while parked and they had it taken care of fast, even going after the repair shop for non oem parts under the bumper.

I guess it's a really mixed bag with them over the past few years they've been expanding.

I was hit in a chain reaction collision started by a USAA member. No particular problem with them paying, but I chose subrogation.