Progressive to pay $48 million to settle claims it undervalued wrecked automobiles
NEW YORK — Progressive (PGR) agreed to pay $48 million to settle a category motion lawsuit accusing the insurer of systematically undervaluing the claims of New York drivers whose automobiles had been wrecked.
A preliminary settlement of the proposed class motion was filed on Monday evening in federal court docket in Manhattan, and requires approval by U.S. District Decide Lorna Schofield.
Coverage holders alleged that Progressive used third-party software program that underestimated what their automobiles might have been offered for earlier than they turned whole losses. They stated the software program used changes that overstated the influence of haggling, when the provision of costs on-line made such negotiations out of date. This effort to “thumb the size” artificially diminished payouts, violating Progressive’s insurance policies and New York’s basic enterprise regulation, the coverage holders stated.
Progressive denied wrongdoing in agreeing to settle. Neither the Mayfield, Ohio-based insurer nor its attorneys instantly responded to requests for touch upon Tuesday.
The settlement covers New York coverage holders from July 28, 2015, to the current. Every member of the settlement class is anticipated to obtain a $335 test, court docket papers present. Attorneys for the coverage holders could search as much as $16 million in authorized charges.
The case is Volino et al v Progressive Casualty Insurance coverage Co et al, U.S. District Court docket, Southern District of New York, No. 21-06243.
