Progressive Class Action Lawsuit, Multiple Settlements Totaling Over $200 Million Impact Thousands of Policyholders
Progressive Insurance faces multiple class action settlements exceeding $200 million combined, with cases alleging the company systematically underpaid total loss vehicle claims by applying improper valuation adjustments to reduce payouts below actual cash value. The largest settlement, approved in New York in March 2025, provides $48 million to approximately 93,000 policyholders who received total loss claim payments between July 2015 and August 2024.
Michigan policyholders secured a $61 million settlement in November 2024 for claims that Progressive failed to include sales tax, certificate of title fees, and vehicle registration transfer fees in total loss payments from 2013 through 2024. Georgia residents obtained a $43 million settlement in April 2025 addressing similar undervaluation allegations affecting claims between October 2015 and February 2025.
What Progressive Is Accused of Doing
The lawsuits allege Progressive used Mitchell International’s WorkCenter Total Loss software with a feature called Projected Sold Adjustment (PSA) that artificially reduced the actual cash value of totaled vehicles. Plaintiffs claim Progressive “systemically thumbs the scale” when calculating actual cash value by applying these improper adjustments to comparable vehicle prices.
The PSA applies a downward adjustment to the listed prices of comparable vehicles used in valuation reports, effectively paying policyholders less than market value for their total loss claims. In Michigan specifically, Progressive allegedly breached its insurance policies by excluding mandatory fees—sales tax, title fees, and registration transfer fees—from total loss claim calculations.
Who Can Join the Class Actions
New York Settlement (Payments Already Sent)
New York’s settlement covers first-party claimants who filed claims on Progressive policies from July 28, 2015 through August 20, 2024, and third-party claimants from July 28, 2018 through August 20, 2024, where compensation was based on Mitchell reports using Projected Sold Adjustments. Payments averaging $383 per person began distributing via email or mail on May 12, 2025.
Michigan Settlement (Final Approval Granted)
Michigan class members include Progressive Marathon policyholders who received total loss payments between July 18, 2013 and July 22, 2024, and Progressive Michigan policyholders who received payments between July 18, 2016 and July 22, 2024. The settlement administrator is currently reviewing claim forms submitted by the December 6, 2024 deadline.
Georgia Settlement (Automatic Payments)
Georgia residents who made first-party claims on Progressive Mountain Insurance policies between October 11, 2015 and February 18, 2025, or Progressive Premier Insurance policies between June 8, 2016 and February 18, 2025, qualify automatically. No claim form is required—eligible class members receive automatic payments averaging $173.
Alabama Settlement (Claims Due October 2025)
Alabama residents who filed first-party claims on Progressive Direct or Progressive Specialty policies between April 20, 2016 and May 21, 2025, where the company applied PSA to total loss claims, can file claims for a share of $30.75 million. The claim deadline is October 15, 2025, and class members must submit forms online or by mail.
Additional Progressive Class Action Cases
Florida Debt Collection Settlement
A separate $500,000 settlement received preliminary approval in July 2025 for Florida residents who received debt collection emails from Progressive between 9 p.m. and 8 a.m. local time from July 2, 2022 through May 16, 2025. The lawsuit alleged Progressive violated Florida’s Consumer Collection Practices Act by sending billing-related emails outside legally permitted hours. Class members must submit claims by November 24, 2025, with the final approval hearing scheduled for December 8, 2025.
Data Breach Settlement
Progressive agreed to a $3.25 million settlement after a security incident at a third-party call center vendor potentially exposed customer information including Social Security numbers, driver’s license numbers, dates of birth, and financial account details to unauthorized individuals. The claim deadline was February 18, 2025, with final approval scheduled for February 25, 2025.
How Much Policyholders Receive
Settlement payments vary significantly by case:
- New York: Average payments of $383.16 per class member
- Michigan: PSA impact amount calculated at 4.31% of actual cash value for eligible claims
- Georgia: Average estimated payment of $173 per person
- Alabama: Payment calculations based on 100% of the PSA impact amount for covered total loss claims
Attorney fees range from 15-22.5% of settlement funds, with administrative costs and service awards to lead plaintiffs also deducted before distribution.
Progressive’s Defense
Progressive denies all wrongdoing in every case, maintaining it complied with all insurance policy terms and applicable laws. The company argued Mitchell’s valuation software was approved by state insurance departments. Progressive agreed to settlements to avoid the cost and risk of further litigation, including potential trials, without admitting any violations or improper conduct.
Legal Basis for the Claims
The lawsuits assert two primary legal theories:
Breach of Contract: Plaintiffs claim Progressive breached its insurance policies by failing to pay the actual cash value of totaled vehicles as required under policy terms, instead using PSA adjustments to reduce payouts below true market value.
State Consumer Protection Violations: New York plaintiffs additionally asserted claims under General Business Law Section 349 for deceptive practices. The Florida case alleged violations of the Florida Consumer Collection Practices Act.
Courts found these claims sufficiently supported to certify litigation classes, with judges determining Progressive’s valuation practices and policy language were uniform for all policyholders within each state.
How to Claim Your Settlement Payment
Active Settlements Accepting Claims
Alabama (Deadline: October 15, 2025):
- Visit altotallossclaim.com
- Enter your Unique ID and PIN from the settlement notice
- Complete the online claim form, or
- Download and mail the paper form to Reynolds v. Progressive Directs Ins. Co., c/o Settlement Administrator
Florida Debt Collection (Deadline: November 24, 2025):
- Submit a valid claim form online through the settlement administrator’s website
- Ensure you received debt collection emails between 9 p.m. and 8 a.m. during the class period
Automatic Payment Settlements
Georgia class members do not need to submit claim forms—eligible policyholders automatically receive settlement checks if they do not opt out.
New York class members who did not opt out automatically received payments starting May 12, 2025, via digital disbursement to email addresses on file or checks mailed to their addresses on record.
What This Means for Current Progressive Policyholders
These settlements represent approximately 54-70% of alleged compensatory damages in the total loss cases, indicating substantial underpayments occurred if plaintiffs’ allegations are accurate. While Progressive maintains its valuation methods comply with policy terms, the company’s willingness to pay over $200 million collectively suggests significant exposure to liability.
Current Progressive policyholders should:
- Document all communications regarding total loss claims
- Request detailed valuation reports showing comparable vehicle selections and adjustments
- Compare Progressive’s actual cash value calculations against independent market valuations
- Consider consulting an insurance law attorney if total loss payment seems unusually low
Comparison to Similar Insurance Class Actions
Progressive’s New York settlement totaling $48 million matches similar litigation patterns against other major insurers using Mitchell’s valuation software with PSA adjustments. The coordination of multiple state-specific settlements indicates systemic practices across Progressive’s operations rather than isolated errors.
These cases follow established insurance law principles requiring carriers to pay actual cash value based on genuine market conditions without artificial downward adjustments. Courts have consistently recognized that insurers breach policy terms when they systematically reduce payouts below true replacement costs through software-driven adjustments divorced from actual market data.
Important Deadlines and Next Steps
Immediate Action Required:
- Alabama: File claims by October 15, 2025
- Florida: Submit debt collection claims by November 24, 2025
Court Dates:
- Florida final approval hearing: December 8, 2025
- Georgia final approval hearing was held May 15, 2025
Already Completed:
- Michigan: Final approval granted November 21, 2024; claims reviewed
- New York: Final approval granted March 7, 2025; payments sent May 12, 2025
Can You Still Sue Progressive Individually?
Class members who did not opt out of settlements are bound by the court’s rulings and release all related claims against Progressive. Opting out preserves your right to pursue individual litigation but forfeits settlement benefits.
For claims outside settlement class periods or involving different allegations, consult an attorney specializing in insurance bad faith and breach of contract claims. Note that insurance disputes often involve complex contract interpretation and state-specific regulations.
Frequently Asked Questions
Q: How do I know if I’m part of a Progressive class action settlement?
You should have received a settlement notice by mail or email if you’re a class member. Check notices for your Unique ID and PIN. If you had a total loss claim with Progressive during the relevant time periods in New York, Michigan, Georgia, or Alabama, search online for “[state] Progressive total loss settlement” to find official settlement websites.
Q: What if I already accepted Progressive’s total loss payment?
Accepting the original payment does not prevent you from participating in class action settlements. The settlements specifically address claims that Progressive’s payments were insufficient under policy terms, regardless of whether you initially accepted them.
Q: Can I get more money by opting out and suing individually?
Possibly, but individual litigation involves significant costs, risks, and time delays. Class action settlements provide guaranteed payments without litigation expenses. Consult an insurance attorney to evaluate whether your specific circumstances justify individual legal action.
Q: How long until I receive my settlement payment?
Payments begin only after final court approval and resolution of any appeals. New York payments started May 12, 2025. Michigan payments are under review following November 2024 final approval. Georgia payments began distributing in late April 2025.
Q: What should I do if I received a low total loss payment from Progressive recently?
Document everything immediately: get written explanations of the valuation method, request the Mitchell report if used, and obtain independent appraisals. If your claim falls within the Alabama class period (April 2016-May 2025), you can file a claim by October 15, 2025. For claims outside settlement periods, contact an insurance attorney to evaluate potential bad faith or breach of contract claims.
Q: Does this affect my current Progressive insurance rates?
These settlements address past total loss claim payments and should not directly impact your current premiums. However, if you have concerns about how Progressive handles claims, consider reviewing your coverage with an independent insurance attorney or exploring other carriers.
Q: Are Progressive’s current total loss valuation practices different now?
The settlement agreements do not require Progressive to admit wrongdoing or change its practices. Progressive maintains it has always complied with policy terms and applicable laws. Without mandated practice changes, policyholders should carefully review any future total loss valuations.
Legal Disclaimer: This information is for educational purposes only and does not constitute legal advice. Class action settlements involve complex legal procedures and individual circumstances vary. Consult an attorney specializing in insurance law for legal guidance specific to your situation. Settlement details are based on court documents and official settlement websites as of November 2025 and may be subject to change pending final court approvals or appeals.
For More Information: Visit official settlement websites referenced in your notice or contact the settlement administrators directly using information provided in your settlement notice. Do not rely solely on third-party websites claiming to represent official settlements.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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