By Satish Mehra
Published on July 11, 2025
Progressive Insurance faces multiple class action lawsuits alleging it systematically undervalues total-loss vehicle claims, shortchanging policyholders across several states. The lawsuits, filed in jurisdictions including Kansas, Maryland, New York, Georgia, and California, claim Progressive uses flawed valuation methods, particularly the “Projected Sold Adjustment” (PSA), through Mitchell International’s software to artificially lower the actual cash value (ACV) of totaled vehicles. Below is a detailed breakdown of the allegations, settlements, and ongoing legal battles, drawing from recent reports and court filings.
Key Points of the Class Action Lawsuits
- Allegations of Undervaluation: The lawsuits assert that Progressive manipulates ACV calculations by applying PSAs, which reduce the base values of comparable vehicles used to determine a totaled vehicle’s worth. The PSA, described as reflecting “consumer purchasing behavior” (e.g., negotiating below list price), is criticized as arbitrary, unsupported by market realities, and contrary to industry-standard appraisal practices. This allegedly results in underpayments, with one New York lawsuit claiming an average 6.5% shortfall.
- Use of Mitchell International Software: Progressive relies on Mitchell’s WorkCenter Total Loss (WCTL) system to generate market value reports (MVRs). Plaintiffs argue these reports misrepresent ACV by applying PSAs on top of standard adjustments for mileage, options, and condition, without transparent justification. In California, a lawsuit by Alameda County DA Pamela Price also names Mitchell as a defendant, alleging collusion to “lowball” settlements.
- Settlements Reached: Progressive has settled several lawsuits:
- New York (2021–2025): A $48 million settlement resolved claims for 93,000 policyholders (July 2015–March 2023), with an average payout of $335 per claimant. Another $13.8 million settlement addressed similar undervaluation claims.
- Georgia (2025): A $43 million settlement covers policyholders from October 2015 to February 2025, with an estimated average payout of $173.
- Michigan (2013–2024): A $61 million settlement (consolidated from two lawsuits) compensates policyholders for unpaid sales tax, title, and registration fees, offering 45% of these amounts.
- Progressive denies wrongdoing in all cases, asserting compliance with insurance policies and state laws.
- Ongoing Litigation: Lawsuits in Kansas and Maryland, filed in December 2024, continue to challenge Progressive’s PSA practices. A California suit alleges violations of state insurance, unfair competition, and false advertising laws. A Pennsylvania case was recently denied class action status due to the need for individualized claim reviews, potentially limiting Progressive’s liability.
- Consumer Impact: The lawsuits highlight significant financial harm to policyholders, especially those reliant on fair payouts to replace totaled vehicles. DA Price noted that underpayments can lead to debt, job loss, or even homelessness, emphasizing the broader socioeconomic consequences.
Implications and Industry Context
Progressive’s practices have drawn scrutiny as part of a broader trend, with similar allegations against insurers like USAA and The Hartford. The California lawsuit suggests a systemic issue in the industry, accusing insurers and software vendors of colluding to undervalue claims. While settlements provide relief, the denial of class action status in Pennsylvania underscores challenges in proving uniform harm across diverse claims.
Conclusion
The class action lawsuits against Progressive reveal a contentious battle over fair compensation for total-loss vehicle claims. With millions paid in settlements, the insurer faces ongoing pressure to reform its valuation methods. Policyholders in affected states may be eligible for compensation, and those with claims from 2013 onward should check settlement websites like ubillusperrytotallossclassaction.com for details. As legal challenges continue, Progressive’s practices remain under a microscope, with implications for the wider insurance industry.
Follow us on X: @bhulkehup
Sources: Repairer Driven News, Reuters, Insurance Journal, Top Class Actions, PropertyCasualty360, ubillusperrytotallossclassaction.com