Progressive Settles $13.8 Million Class Action Over Vehicle Claims

Four subsidiaries of Progressive have agreed to a significant $13.8 million settlement in response to a class action lawsuit alleging that they undervalued claims for total loss vehicles. The lawsuit, originally filed in the Southern District of New York in October 2021, accused Progressive Casualty Company, Progressive Advanced Insurance Company, Progressive Max Insurance Company, and Progressive Specialty Insurance of improperly calculating the actual cash value of totaled vehicles.

The plaintiffs claimed that the insurers utilized valuation reports from Mitchell International, Inc. that included a "projected sold adjustment" deduction. This adjustment was based on consumer purchasing behavior, which some argue unfairly lowered the claims payout that policyholders were entitled to receive. The settlement resolves allegations that could have impacted many insured motorists, highlighting the importance of fair valuation practices in the insurance industry.