Progressive Insurance Total Loss Payments Result in Class Action Lawsuit
Two New York residents have filed a class action lawsuit against Progressive, claiming the insurance provider undervalues the the price for totaled vehicles to avoid paying full price to vehicle owners.
The complaint (PDF) was filed by Dominick Volino and John Plotts late last month in the United States District Court Southern District of New York, alleging Progressive uses deceptive methods to set a total loss payout amount for vehicles after an accident. Plaintiffs allege the actions are unethical and designed to under-appraise the wrecked vehicle, resulting in lower payments to customers under insurance policies.
The lawsuit was filed after both plaintiffs’ vehicles were declared a total loss following a car accident, and Progressive Corporation was required to pay the vehicle owners actual cash value to purchase replacements.
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Learn MoreVolino alleges he was underpaid by $585, and Plotts’ claim could have been $800 more without Progressive using their “Projected Sold Adjustment”. However, with large numbers of other total loss payments issued by Progressive allegedly undervaluing cars, plaintiffs seek class action status for the lawsuit.
Progressive uses a third-party vehicle service provided by Mitchell International to establish a price on vehicles deemed a total loss, according to the class action lawsuit. Plaintiff’s claim Progressive’s third-party service uses a “Projected Sold Adjustment” pricing method, which establishes an unfair price for the vehicle reimbursement to owners.
The complaint indicates competitors of Mitchell International use actual list prices of comparable vehicle models when establishing a payout price to vehicle owners whose vehicles have been deemed a total loss, ultimately paying the vehicle owner more money for their totaled vehicle.
Volino and Plotts further allege Progressive arbitrarily uses the Project Sold Adjustment pricing method in New York only, while providing no explanation for why this same “unfair” calculation is not used across the rest of the country.
New York prohibits insurers from being sued directly for unfair claims practices. However, the lawsuit presents alternative causes of action against Progressive, which include Violation of New York General Business Law, which does allow a private right of action, and breach of contract.
Plaintiffs estimated more than 100 other class members exist, and claimed damages exceed $5,000,000. In addition to class action status approval and damages, plaintiffs are also asking the court to stop Progressive from using the projected sold adjustment method to cheat policyholders out of the rightful value of their total loss payouts.
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10 Comments
CoreyJanuary 6, 2024 at 6:11 am
Avoid at all cost or it could cost you. Been a customer 5 years and come to realize they're very dishonest, use a adjustable pricing scale said to not be used for commercial use in the terms, they tried tell me if I did not take blame for a guardrail after part failed then I'd be responsible to try and force me to say was my fault but it wasnt. The truck was regularly maintained religiously front [Show More]Avoid at all cost or it could cost you. Been a customer 5 years and come to realize they're very dishonest, use a adjustable pricing scale said to not be used for commercial use in the terms, they tried tell me if I did not take blame for a guardrail after part failed then I'd be responsible to try and force me to say was my fault but it wasnt. The truck was regularly maintained religiously front to back.but ins went 95$ - $221 after the wreck they claim was my fault but that's only their opinion. The dept of ins does nothing or advances to offer or give any true assistance. Actually sent me someone else's letter by accident but I made complaint with the dept and they dont even really review the claims or mediate they make you do it like you're super lawyer of 2024! But I have been treated terribly I asked to cancel direct pay and did not and tried take out parent after told them not to and was cancelling coverage as of 5 months @ 221$ and they wouldnt correct the fault situation. I had managers, adjusters, claims reps all like a decieved me the claim lasted 8 months literally cause they kept making up standards they they could go into Mitchell's and manipulate for their beinifactory
PatriciaJune 26, 2023 at 10:52 am
Fighting with Progress now, totaled my 2020 Ford Ranger XLT and they are low-balling my settlement offer. Projected Sold Adjustment?? Vehicle Configuration Adjustment?? This is BS.
MarionFebruary 2, 2023 at 1:39 pm
Progressive kept changing the amount of my policy without ever giving me a definitive reason why. I thought my auto policy was based on my driving record (clean) my claims (none) and my credit score (good). None of that changed but in the span of a week my quote kept increasing and when I asked for answers their management team didn't bother to hide their rudeness. I was bothering them. I've filed[Show More]Progressive kept changing the amount of my policy without ever giving me a definitive reason why. I thought my auto policy was based on my driving record (clean) my claims (none) and my credit score (good). None of that changed but in the span of a week my quote kept increasing and when I asked for answers their management team didn't bother to hide their rudeness. I was bothering them. I've filed a complaint with the Texas Board of Insurance and the BBB in Ohio but really don't expect much. BBB sent me Progressive's reply that put it all on my agent, but I was there the whole time and my agent was NOT to blame. Either this employee shortage has lowered significantly the quality of Progressive reps who have problems comprehending or Progressive thinks they can operate with impunity. Flo, I used to really admire you! Now I feel sorry for you to be associated with such people.
RyanMay 15, 2022 at 3:48 pm
I opened up a auto insurance policy with Progressive on Oct 25, 2021 at 100am. At 300pm on the same day we had flash floods everywhere in the Bay Area and my car was stuck in a flood in Millbrae, CA. My car sat in that waist high water for 5 hours because I could not get a hold of Progressive Roadside Assistance. I finally hired a tow truck company to help me tow my car to friends house nearby at[Show More]I opened up a auto insurance policy with Progressive on Oct 25, 2021 at 100am. At 300pm on the same day we had flash floods everywhere in the Bay Area and my car was stuck in a flood in Millbrae, CA. My car sat in that waist high water for 5 hours because I could not get a hold of Progressive Roadside Assistance. I finally hired a tow truck company to help me tow my car to friends house nearby at 945pm. Someone finally answered the phone at Progressive around 1100pm and said a tow truck will come in an hour. I waited for 3 and a half hours for this truck and no one came. I tried calling back to Progressive and no one answered. I again tried to do this again Monday, Tuesday both days NO SHOW. Finally Wednesday Progressive sends a truck to tow my car to the shop. Progressive claims department told me that an adjuster will be at the shop within 72 hours to look at the damages to my car. He didn't come for 7 days and when he did, he deemed my car a total loss due to water in the motor. So since I was covered at the time of incident, I was expecting a check for my loss to my 2018 Honda Civic Sport. Thats not what happened. This jerk started an investigation instead since I opened up the policy on 10/25/21 at 100am, and the incident was on 10/25/21 at 300pm. These people were asking me for documentation for my last insuramce policy with Farmers that ended on 10/24/21, my work schedule, since I was on my way to work at the time of the incident, names of the people who helped me push my car out of the water 5 hours later, and a copy of the 911 calls from San Mateo County Sheriffs Office sine they are the ones who patrol Millbrae. I sent them all these documents on 12/8/21. It is now May 2022. They recently contacted me through email stating that they never received them. I have proof that they did. I have not been paid for my car and I canceled my policy with Progressive. They are a BS Company that does BS things to their policy holders. Im still seeking legal representation for this issue, but I WILL NEVER BUY A POLICY THROUGH A DISHONEST COMPANY LIKE PROGRESSIVE. For those of you shopping around for insurance, YOU SHOULDNT EITHER..
Irma SandersApril 22, 2022 at 11:02 am
I received a check for my son yesterday,4/20/22,He had surgery on August 03,2017 he has been deceased since 10/21/2021,you sent hima check Claim#SVP-131855 settlement check,His name is Troy D.Sanders ,I'm his mother,how do I cash this check that was made out to myson,please call me I have left several messages the check was written by Dustin Wfire.
KellyApril 14, 2022 at 9:09 pm
Progressive total loss after 125 days "settled". The undervalued my car by close to 10k. I hired appraiser. They had me drive the damaged vehicle around town for estimates after a month of "vacations" and "get back to you next week's". This I now see is so the total loss on 2022 book's loss, not 2021. I have had comprehensive coverage on same car since 2011. They required social media posts, for[Show More]Progressive total loss after 125 days "settled". The undervalued my car by close to 10k. I hired appraiser. They had me drive the damaged vehicle around town for estimates after a month of "vacations" and "get back to you next week's". This I now see is so the total loss on 2022 book's loss, not 2021. I have had comprehensive coverage on same car since 2011. They required social media posts, for me to drive and get records that had been stolen to show it was not a fraudulent claim. when recovered by police i called to ask if i should have it towed home since i unsure of damage, and no one at progressive could answer this. They suggested driving it. after days of driving my damaged vehicle to estimates setbup by agjuster, it was determined it a total loss due to drug use in car as a needle cap was found. This was AFTER the police report included drug bags and paraphernalia. The needle cap could have been my son's as he is type 1 diabetic. All this to say, I have paid nearly 1k for rentals, I do not have my vehicle as it totaled by insurance and it sat in rain the entire b time waiting for the appraisers. I wanted to buy back and fix until I saw it not water tight and in 4 months of rain waiting. I am beyond upset with whole process.
LeslieApril 8, 2022 at 6:41 pm
My daughter car was vandalized while it was parked at my other daughters house and progressive deemed it a total loss, however the agent is interrogating my two daughters as if they had something to do with it. We have had several conversations with the claim representative(unrecorded) and now have fallen into a so- called supervisor hands, spoke with the so-called supervisor who continues to badg[Show More]My daughter car was vandalized while it was parked at my other daughters house and progressive deemed it a total loss, however the agent is interrogating my two daughters as if they had something to do with it. We have had several conversations with the claim representative(unrecorded) and now have fallen into a so- called supervisor hands, spoke with the so-called supervisor who continues to badger us about presenting personal information(such as phone records, employment information) and has also deemed our conversation valid with the original claim rep but information was incorrect but when corrected stated he could t take our word for it cause it was third party information. Any advice would be helpful. Been a customer since 2006 and have never been in a situation such as this.
MichaelApril 5, 2022 at 2:00 pm
Hello I received a blue paper 📄 but I don’t remember most of the detail I need help please.
BradleyOctober 15, 2021 at 11:20 pm
They did me like this too, totaled out my 2015 ram with 10k worth of damages. I’m furious. If I had the money I’d sue them. IMO they underpaid me by several thousand dollars as far as I’m concerned. They valued the vehicle at like $15600 I can’t find a similar vehicle for anything close to what they paid me for it. Not to mention what they paid me for it didn’t even cover the 18,000 I owed on it. [Show More]They did me like this too, totaled out my 2015 ram with 10k worth of damages. I’m furious. If I had the money I’d sue them. IMO they underpaid me by several thousand dollars as far as I’m concerned. They valued the vehicle at like $15600 I can’t find a similar vehicle for anything close to what they paid me for it. Not to mention what they paid me for it didn’t even cover the 18,000 I owed on it. Tbh, all they did was look up a fair value on Kelly blue book. I was told over the phone all of the talk about the used car market being up was nonsense. Guess progressive was wrong.
JessicaSeptember 23, 2021 at 4:35 am
I have an open claim now for a no fault accident.. they have claimed total loss. Vehicle is 2020 Ford cargo van with 2k miles and repair is 14k .. true car values my car 46k… how is this a total loss.. it’s been 3 weeks since my accident in WY (i live in FL) and i have yet to receive a phone call. I want them to approve the repairs. I haven’t been told anything on what they value my van for.. i ha[Show More]I have an open claim now for a no fault accident.. they have claimed total loss. Vehicle is 2020 Ford cargo van with 2k miles and repair is 14k .. true car values my car 46k… how is this a total loss.. it’s been 3 weeks since my accident in WY (i live in FL) and i have yet to receive a phone call. I want them to approve the repairs. I haven’t been told anything on what they value my van for.. i haven’t HEARD anything.