Progressive Insurance hit with Lawsuit for Undervaluing Total-Loss Vehicles

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(USA Herald) – This is the case of Holmes et al. v. Progressive Universal Insurance Co. et al., in the U.S. District Court for the Northern District of Illinois.

A class of vehicle owners can pursue claims against Progressive Insurance, alleging that the company failed to disclose material information regarding the way it values total-loss vehicles. This ruling came from an Illinois federal court while dismissing several remaining claims that the insurer engaged in deceptive and unfair conduct in violation of the state’s consumer fraud act.

The lawsuit, filed last February by policyholders Normanda Holmes and Neil Young, claims that Progressive undervalued their vehicles that were deemed total losses after they were involved in separate car crashes in 2020.

The policyholders alleged that Progressive breached their policies and acted in bad faith by applying a downward adjustment to comparable vehicles, which resulted in a lower actual cash value than they should have obtained. They also claim that Progressive’s practices violated the Illinois Consumer Fraud and Deceptive Business Practices Act, or ICFA.