Seventh Circuit Reverses Class Certification in Progressive Indiana Total Loss Case

The Seventh Circuit Court of Appeals reversed the certification of a class-action lawsuit involving Indiana drivers insured by Progressive Corp. subsidiaries. The case centers on claims that the insurers undervalued the actual cash value of totaled vehicles. The appellate court found that individual issues predominate, necessitating separate consideration by a jury rather than class-wide resolution.
Judge Amy J. St. Eve highlighted that the lower district court erred in its legal interpretation of the duties under Progressive's standard-form Indiana auto insurance policy. This decision underscores the complexities in assessing insurer obligations and valuation practices in total loss claims within the auto insurance market. The ruling may influence how future class actions and claims involving vehicle valuations are handled in Indiana and potentially in other jurisdictions.