Progressive to pay $48 million to settle claims it undervalued wrecked cars

[mahatmakanejeeves]

Reuters
Progressive to pay $48 million to settle claims it undervalued wrecked cars

Jonathan Stempel
Updated Tue, Jul 2, 2024, 2:04 PM EDT • 1 min read
By Jonathan Stempel

NEW YORK (Reuters) - Progressive (PGR) agreed to pay $48 million to settle a class action lawsuit accusing the insurer of systematically undervaluing the claims of New York drivers whose vehicles were wrecked.

A preliminary settlement of the proposed class action was filed on Monday night in federal court in Manhattan, and requires approval by U.S. District Judge Lorna Schofield.

Policy holders alleged that Progressive used third-party software that underestimated what their vehicles could have been sold for before they became total losses.

They said the software used adjustments that overstated the impact of haggling, when the availability of prices online made such negotiations obsolete.

{snip}

[Sneederbunk]

1. Say it ain't so, Flo.

[Faux pas]

2. Next to religion

insurance is the biggest scam. Thanks a lot Benjamin Franklin