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A recent class action lawsuit claims that Progressive underpays their auto insurance total loss settlements.
Plaintiffs Rolando Hernandez and Victor Davalos Amaro claim that Progressive routinely fails to pay the full actual cash value of totaled vehicles, meaning that consumers do not get the settlement payment they deserve.
A car is considered “totaled” if the cost to repair the vehicle exceeds the value of the car. In these cases, or in cases where the damage is over a certain percentage of the car’s value, the car is declared a “total loss.”
Hernandez reportedly leased a 2016 Lexus NX 200t F Sport which was insured through Progressive. In October 2017, Hernandez was allegedly involved in an accident that resulted in his Lexus being deemed a total loss.
Progressive allegedly used the opinion of a third party to pinpoint the Lexus’ value at $40,960.08. This amount was reportedly increased by a “condition adjustment” of $40.65 and an “aftermarket parts adjustment” of $400.
After these adjustments, the vehicle’s value was estimated at $41,400.73. Hernandez allegedly had a $500 deductible which was applied to the car’s value, resulting in a final settlement value of $40,900.73.
Hernandez claims that this settlement amount was far too small because it did not consider title transfer fees or registration transfer fees. Additionally, Progressive allegedly only accounted for 0.003 percent sales tax at $142.56. Hernandez claims that he deserves significantly more in payment to compensate for the full value of his car.
Amaro makes similar claims regarding his own claim with Progressive. He allegedly owned a 2017 Toyota Camry SE that was insured under Progressive. In November 2018, his Camry was reportedly involved in a car accident that ended with the vehicle being declared a total loss.
Through their third party, Progressive reportedly determined that the Camry’s base value was $15,267.37. After a “condition adjustment” of $21.92 and a $1000 deductible were subtracted from the value’s total, the settlement amount was $14,245.45. Amaro claims that this settlement amount did not include any title transfer fees or registration fees.
“The promise to pay [actual cash value] is a promise to pay the adjusted vehicle value (or what Defendants call ‘Market Value’), plus state and local sales tax based on the adjusted vehicle value, plus title and registration transfer fees, less any deductible and salvage-retained value,” the plaintiffs argue.
“Instead of fulfilling their contractual obligation, Defendants, as a matter of uniform procedure, refuse to include title or registration transfer fees to any insured. If an insured leases the total-loss vehicle, like Mr. Hernandez, Defendants also refuse to the pay the amount in sales tax owed under the Policy.”
Progressive claims that they pay actual cash values equivalent to “the market value of your vehicle based on pre-loss condition, age, options, mileage, etc.—minus any applicable collision or comprehensive deductible.”
Hernandez seeks to represent a Class of consumers who had a Florida car insurance policy issued by Progressive American Insurance that involved a total loss settlement within the last five years. Amaro seeks to represent a similar Class of consumers who had a Florida car insurance policy issued by Progressive Express Insurance that resulted in a total loss within the past five years.
The Auto Insurance Total Loss Class Action Lawsuit is Hernandez, et al. v. Progressive American Insurance Company, et al., Case No. 1:19-cv-22300-FAM, in the U.S. District Court for the Southern District of Florida.
Join a Free Total Loss Car Accident Class Action Lawsuit Investigation
If you were insured under an auto insurance policy, experienced a total loss car accident, and were not reimbursed for sales tax and other fees by your insurance company in the last 5 years, you may qualify to join a total loss car accident class action lawsuit investigation.
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14 thoughts onProgressive Allegedly Underpays Auto Insurance Total Loss Claims, Say Car Owners
We were hit by a semi insured by Progressive.
Our new toy hauler was what we were going to be living in while we moved across the country for a job.
The semi went INTO our toy hauler while we slept at a truck stop.
The driver wasn’t on the policy, the truck was out of service and 54 days have passed with them pulling all kinds of tricks. My kids are suffering and all of us are emotionally drained. We have to still live in the toy hauler with half electronic not working and I black tank won’t work. A huge hole in the side we had to cover up. Our clothes and items in the garage where the truck hit, are ruined from glass, metal, and water damage.
They have a plan called “Swoop and Settle” they want you so desperately in need of money that you will take a low offer. Pure evil.
The accident happened in Texas which is a fault State. We are now in Pennsylvania. No physical harm, yet the financial and emotional stress is a killer.
It’s a Michigan issue as well. Having a fight with Progressive regarding “Market Value” of my son’s unicorn car (16yrs old in very good condition with only 55,000 miles and rare high end options package). They offered $6,500 when less valuable similar vehicles are selling for $8,000 to $10,000. But they won’t accept those vehicles as comps, because the options are different (yeah, exactly…my son’s car was a unicorn not a cookie cutter). So, I’m pushing them gently, but will meet them in court or arbitration, simply on principal.
Im currently in settlement for a toal loss at the moments. Any tips or advise on how to get our car repair to get the correct amount for our car. They are taking almost $5000.00 in “salvage fees” and the adjuster said she cant provide any document or report with these amounts. Kinda suspish
So my son was at a McDonalds and as he was going through the parking lot a girl back right in to him on the passengers side of the car.
I told him to call the police so they can get a report. The police arrived and it was found out the girl stole her moms car and that her mom’s insurance will not pay since it was stolen.
So my son asked the officer if he could get the report but the officer replied they do not do reports on this kind of thing.
So my son was able come home (the car was still drivable) and we called Progressive and they already had the claim open because the mom called.
We took it to the shop to get it fixed however yesterday, one of the agents said to my voice mail the car is considered a total loss and she would like to discuss the claim.
My actual adjuster said when first called, it looks like the mom will not have her insurance pay for it is since her daughter stole her car. He stated once we get the rejection letter, we can go to an appeal or they will go after the daughter.
So in an after thought, if the daughter stole the car would not you not call the police about it? I know when my son’s friend used the same car he hit a car that was moving lanes as he was coming out of the gas station. We were responsible for the accident even though he was not on our insurance… so I am just confused. By the way, we are in Florida.
PROGRESSIVE IS NOW TRYING TO TOTAL MY SECOND CAR IN A ROW! I just had a total loss on 10-19 and on 11-11 I was struck and the police report marks a hit and run and says a third vehicle was there. It was not they fled. I had to chase this other guy down, I don’t believe a third vehicle was involved at all. I am not giving up this car as I have no options left. I need to explain more to anyone this is crazy. They are saying I am at fault this is crazy!
I lost my drivers license because of progressives agent failure to get the report quickly. I then continued to drive and was in an accident injuring two people. I now am facing two felony charges. This accident being recorded incorrectly, has caused so many problems. Progressive totaled the car- saying it had frame damage- when the airbag deployed and they will not pay for It to be replaced. The car had less then 30k and 5 factory warranties on it. The entire vehicle was worth more. It’s not the drivers fault that the air bags are safety mechanisms required in vehicles. The repair shop can’t even let it leave the lot if it’s not repaired. It’s a total loss. Air bags need more research and cheaper costs. Especially when chips to cars are low and inventory is low. Insurance companies are totaling cars for no reason. I got the Dept. of Insurance and finance involved. They agreed with Progressive based on their estimates. Although the repair shop completely disagreed. There was no frame damage. This has been a nightmare
My car was struck while parked and progressive is giving me the runaround: can’t get police report, sent police report, need more pictures, gave more pictures, now send more pictures, I complain and now they want to tow it away to evaluate the value. I guess they decided they didn’t need more and more pictures after all. The accident was about 3 weeks ago and am now afraid that once my car is towed away, I will have little or no way to get anything close to a fair value offer. The car isn’t worth much but it was good reliable transportation. Any advice, they are looking to schedule the tow now.
Thanks, Steve
It appears that this isn’t just a Florida issue. I spoke with a someone who is in Alabama that had the same issue and I am having the issue now In Georgia. Ridiculous…
I’m in GA and I’m currently dealing with Progressive now due to their insured motorcyclist who attempted to pass in a no passing zone then swerving back over to avoid hitting me head on, suddenly causes he biker friend to wreck and his motorcycle was thrown into and under my Tahoe. Progressive wanted to total it before ever laying eyes on it and requested to move it to a storage free lot immediately! I refused to release my vehicle and finally an adjuster gave estimate and completion date to repair. I questioned adjuster as to why headliner replacement was not included with that estimate cost. He then proceeded to tell me the following day it was a total loss! Now progressive is offering me $10,000 for a 09 Tahoe in pristine condition and wants to deduct storage of $30 per day from that offer which is $700. I’m contacting the ga insurance commissioner as well as federal trade commissioner. I have an attorney so I’m just gonna wait it out and go in front of a jury since they don’t want to offer me any more on top of my rental cost exceeding $1200.00 and my household bills falling behind due to this. I also had to go part time at work, losing all of my sick time as well as benefits in order to keep my job since I never know if I will have transportation or not.
It seemed like everytime it was time to renew my insurance, they went up on the policy. They are a big rip off, they robbed me, for years. I lost a lot of money, over the years.
As loyal Emerald members, we have seen our rates go up in the past 2 years from +/-$1K a year to what had now stagnated at $6K a year with one teenage driver (2 incidents, I walked away stupidly not claiming any loss on my vehicle – NOT A DIME), and as my 2nd son turns 17 years of age thet unadvised charge me $230/ to be +$300 a month within the same policy period – NO information provided. Just out of the blue. My 17 year old has not even driven as of yet. Incredible. Who can afford $800 car insurance a month???? NO public transportation, yet we pay millions for a transit center built nearby with no coherent bus service. – That is for the city. What do you do? I am speechless at the abuse.
I just found out that Progressive was charging me extra money on my premium because they had my profession and education categorized incorrectly. Correcting this classification is a reduction monthly of $55/month. When I asked them to refund me the charges from the past of having me categorized wrong they said they could not do it, it was MY RESPONSIBILITY to make sure they categorized me correctly. A class-action case needs to be started for this subject.
I agree wholeheartedly. I too am emerald member and for 15 years I’ve paid them over $40000 total. I was hit once while
Inside Whataburger and recently 12/31 by someone on the phone who didn’t even see me. They are totaling my car and since the pandemic I haven’t been working so I said I wanted it repaired. It’s old 2011 Lexus es350 but only 92000 miles and I have records of it being serviced at Lexus dealership for all major tune ups and maintenance other than oil and tires. Meaning it’s in excellent condition and paid off. So really my last accident was in 1993 hit from behind by a drunk driver and this is the service I get. The loss value is based on repaired parts from salvage yards all over Texas and Florida. So now I’m wondering is that even lawful?
Out of sheer frustration I looked up all 2011 es350 in my area and even one with 194000 miles cost $11,995 with prior accidents. This is just wrong when all I want is to be made whole. Add insult to injury Took forever
To get a rental cause of the holidays and less than a week later they want the car returned. It’s just so depressing and I thought being a valued customer that always pays premiums on time I would not have this issue with them. Was I ever wrong.
All insurance companies are just crooks just like the banks