Court blocks Progressive class action over auto total loss valuations | Insurance Business America
Progressive just avoided a class ... claim issues. · On July 7, 2025, the US Court of Appeals for the Third Circuit reversed a lower court’s decision to certify two damages classes in a lawsuit against Progressive Specialty Insurance Co. and Progressive Advanced Insurance Co. The plaintiffs, all Pennsylvania policyholders, argued that Progressive systematically underpaid total loss auto claims by using ... Progressive just avoided a class action over how it values totaled cars- but not without a warning from the Third Circuit about individualized claim issues. · On July 7, 2025, the US Court of Appeals for the Third Circuit reversed a lower court’s decision to certify two damages classes in a lawsuit against Progressive Specialty Insurance Co. and Progressive Advanced Insurance Co. The plaintiffs, all Pennsylvania policyholders, argued that Progressive systematically underpaid total loss auto claims by using a “Projected Sold Adjustment,” or PSA, to lower settlement amounts.Plaintiffs said this adjustment unfairly lowered the actual cash value (ACV) Progressive was contractually obligated to pay. They claimed this breached Progressive’s auto policy, which states that ACV is “determined by the market value, age, and condition of the vehicle at the time the loss occurs.”Progressive countered that its valuation approach used a dual-source system combining data from Mitchell and the National Automobile Dealers Association (NADA), followed by additional adjustments based on vehicle condition and other factors. According to Progressive, the PSA is not applied uniformly and varies depending on the make, model, location, and sale environment of each vehicle. It also argued that even with the PSA, many claimants may have received payments equal to or above their car’s true ACV.For insurance professionals, the ruling highlights a key issue: even standardized claim practices like PSAs may not expose carriers to class action risk if the actual effect on payouts varies claim by claim. It also reinforces that auto policies allowing for third-party valuation tools, when used with documented and variable inputs, can provide strong defenses against uniform breach allegations.
