Progressive Settles $61 Million Class Action Lawsuit for Michigan Total Loss Claims

Progressive has reached a $61 million settlement to address claims that they improperly excluded fees from total loss claim payments in Michigan. The lawsuits, filed in 2019 and 2022, alleged that Progressive left out important fees like sales tax, title fees, and vehicle registration fees from their payouts, violating state insurance rules. This settlement is for policyholders who are insured under either Progressive Marathon or Progressive Michigan automobile policies and who filed claims for total vehicle losses during specific time frames.
If you fall under this category, you have until December 6, 2024, to file your claim online or by mail through the settlement website. You can start the process by entering your ZIP code and the unique ID from your settlement notice. Eligible claimants could receive a percentage of unpaid fees – 45%, 55%, or 65%, based on attorneys’ fees and the allocation explained on the settlement website. The payout amount will depend on the total loss date, with the site’s FAQ offering more details.
The settlement got preliminary approval in July, and after a final approval hearing on November 21, payments will be distributed once all court approvals are completed. Progressive is addressing claims that they overlooked essential fees needed to calculate the actual cash value of totaled vehicles, with the aim of resolving this issue for policyholders impacted by these discrepancies.