Progressive Settles Car Undervaluation Classes for $48 Million

Progressive Casualty Insurance Co. will pay out $48 million to resolve separate class action allegations that it improperly undervalued wrecked cars when it made cash payments to its policyholders.

The two proposed classes asked the US District Court for the Southern District of New York to preliminarily approve its settlement agreement, their unopposed motion said Monday. They alleged Progressive was applying “projected sold adjustments” to the actual cash value of cars, which reflected the difference between a car’s listed price and the price it’s sold at, no longer reflecting the car’s market value.

Of the $48 million common fund, no ...