In a significant class action settlement, Progressive Insurance will pay out $43 million to eligible policyholders who were impacted by an allegedly flawed valuation process for vehicle damage claims. The settlement, which benefits drivers across the United States, will see automatic payments to eligible individuals without requiring them to provide proof of their claims.
This settlement addresses a lawsuit filed against Progressive Insurance, alleging that the company underpaid policyholders for their vehicle loss claims. Specifically, the company was accused of using a method known as the “Instant Report” from Mitchell International, which resulted in undervaluing certain vehicle damages. Affected individuals will now receive compensation from the settlement without having to submit documentation of their losses.
The Background of the Lawsuit
The lawsuit stems from claims that Progressive undervalued vehicles involved in accidents by relying on an automated vehicle valuation process that didn’t accurately reflect the true worth of a car. In some cases, this meant that policyholders were paid less for their damaged vehicles than they were owed. The plaintiffs argued that Progressive’s use of a flawed valuation method led to unfairly low payouts.
The settlement was reached after a lengthy legal battle, with Progressive agreeing to pay $43 million to resolve the claims without admitting any wrongdoing. The amount will be distributed among eligible policyholders, providing a financial remedy to those affected by the alleged underpayment.
Who Is Eligible for the Settlement?
This settlement applies to policyholders who filed a first-party auto insurance claim with Progressive between 2015 and 2025. Specifically, individuals who received an Instant Report from Mitchell International that included a Projected Sold Adjustment applied to at least one comparable vehicle are eligible for compensation. These reports are used to estimate the market value of damaged vehicles when a claim is filed.
To be eligible for the settlement, claimants must have had a policy with Progressive Mountain Insurance Co. between October 11, 2015, and February 18, 2025, or with Progressive Premier Insurance Co. of Illinois between June 8, 2016, and February 18, 2025.
Unlike many other class action settlements, individuals do not need to take any action to receive payment. If you are eligible, you will automatically be included in the settlement and receive compensation. This is a significant advantage for claimants, as it removes the need for proof of the original claim or detailed paperwork.
Payment Details
The total settlement amount of $43 million will be distributed to eligible claimants. While the final payment amount may vary, the average payout is estimated to be approximately $173 per person. The exact amount each claimant will receive depends on the number of eligible individuals who come forward to claim the settlement.
This compensation is intended to address the financial loss suffered by policyholders who were affected by the flawed vehicle valuation method. Given that the payout is automatic, it simplifies the process for recipients, who would otherwise have to navigate lengthy claims procedures.
What Should Eligible Claimants Do?
Eligible policyholders do not need to take any action to receive the settlement. Payments will be distributed automatically, provided that individuals meet the criteria for the settlement.
However, if someone wishes to exclude themselves from the settlement, they must do so by the deadline of April 30, 2025. Excluding oneself from the settlement means that the claimant will not receive a payment but will also retain the right to pursue any other legal action against Progressive.
Those who wish to file an objection or exclude themselves from the settlement can visit the official settlement website, GATotalLossClaim.com, for more information. The deadline for opting out or submitting objections is fast approaching, so eligible individuals should act soon if they wish to make any changes to their involvement in the case.
Key Dates to Remember
There are several important deadlines for those involved in the settlement:
- April 30, 2025: Deadline to exclude yourself from the settlement.
- May 15, 2025: Final approval hearing for the settlement.
- After May 15, 2025: Payments will be distributed to eligible claimants.
If you are eligible for the settlement, your payment will be sent automatically following the final approval hearing.
Legal Guidance and Next Steps
The settlement represents a resolution to claims that Progressive systematically underpaid its customers by using an inaccurate method to determine vehicle damage payouts. This case is just one example of the increasing scrutiny insurance companies face regarding the fairness of their claims processes. Consumers can find more information about their rights and how to file claims on official government websites, such as the Consumer Financial Protection Bureau (CFPB), which provides resources on insurance claims and consumer protections.
For individuals who are unsure about whether they are eligible for the settlement or who want to know more about their rights, legal counsel may be helpful. Many class action lawsuits offer free consultation services to help claimants understand their position.
Conclusion
The $43 million Progressive class action settlement provides a welcome financial relief for eligible policyholders who were affected by the company’s undervaluation of vehicle damage claims. The fact that no proof of claim is required makes the process easier for those who are entitled to compensation. By distributing payments automatically, Progressive aims to resolve the issue efficiently and fairly for all affected customers.
If you believe you may be eligible for this settlement, it’s important to keep track of the relevant deadlines and check your eligibility. The settlement website provides further instructions and can answer any questions about the process.