Progressive Hit With Class Suit Over Uber Insurance Charges

Progressive Corp. was hit with a proposed class action alleging it charged Uber Technologies Inc. passengers in California for a policy intended to cover accidents involving other at-fault drivers who lack insurance, while providing a illusory product that violated state law.

The policy sold by Progressive and its subsidiary contained illegal provisions that rendered the coverage secondary rather than primary, excluded entire categories of damages such as medical expenses, and forced insured parties into a separate occupational accident insurance system, according to a complaint filed Tuesday in the US District Court for the Northern District of California.

The “bait-and-switch” scheme ...