Progressive settles Michigan class action for over total loss claims
Policyholders in Michigan are in for some good news! Progressive Michigan Insurance Co and Progressive Marathon Insurance Co have agreed to pay $61 million to settle a class-action lawsuit. This lawsuit alleged that the companies did not include certain fees in total-loss automobile insurance claim payments.
The fees in question include things like sales tax, certificate of title fees, and vehicle registration transfer fees. The settlement applies to Michigan residents who filed first-party claims with Progressive Marathon between July 18, 2013, and July 22, 2024. Similarly, Michigan policyholders with Progressive Michigan who filed comparable claims between July 18, 2016, and July 22, 2024, are also part of the class.
Under the settlement terms, class members will receive 45% of any unpaid sales tax or fees. This is contingent on attorney fees remaining within the $12.5 million to $15 million range. If attorney fees are approved below $12.5 million, the settlement amounts for class members will be adjusted upward.
It’s important to note that Progressive denies any wrongdoing and claims to have followed the terms of its Michigan auto insurance policies. The company also retains the right to audit claims submitted under the settlement for accuracy.
Beyond the Michigan settlement, Progressive is facing another class-action lawsuit in Massachusetts. This lawsuit alleges that the insurer did not give drivers the option to purchase collision coverage for justifiable reasons, like insurance fraud, theft, or driving violations.
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