Class Action

Progressive Dodges Suit Over Payout Methodology for Totaled Cars

Sept. 28, 2020, 7:38 PM

Progressive Direct Insurance Co. beat a proposed class action in a South Carolina federal court alleging that it breached its contracts and engaged in bad faith by relying on a methodology for calculating payouts for totaled car claims that undercuts vehicles’ actual cash values.

The Sept. 25 ruling from Judge Julianna M. Childs of the U.S. District Court for the District of South Carolina ends the insurer’s 11-month fight against policyholder Charmaine Wearing’s lawsuit. She alleged she was wrongfully deprived of almost $1,400 as a result of that methodology.

Wearing’s policy “does not impose an independent obligation on Progressive to...

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