Several recent Progressive class action lawsuit settlements have involved disputes over total-loss vehicle valuations, claims payments, and customer compensation.
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Progressive is one of the largest auto insurers in the United States, covering over 37 million drivers nationwide. But in recent years, the number of Progressive class action lawsuits has grown, involving claims handling, vehicle valuations, privacy concerns, and insurance billing practices.
Key Takeaways
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Brett Holzhauer is a senior financial writer and editor with over a decade of experience covering personal finance, investing, and the U.S. economy. His work has been featured in Forbes and CNBC, where he focuses on helping readers make sense of real-world financial challenges.
Many of the lawsuits against Progressive allege that policyholders whose vehicles were declared total losses were underpaid. Other cases involve data breaches, coverage disputes, and premium-related issues. While Progressive has denied wrongdoing in many of these cases, the company has agreed to millions of dollars in settlements over the past several years.
If you have been contacted about a Progressive class action lawsuit or are a current customer, it’s helpful to know your rights. Here’s a closer look at why Progressive keeps getting sued, the major lawsuits and settlements that have emerged in recent years, and what drivers should know moving forward.
What Is Driving the Lawsuits Against Progressive?
There have been several lawsuits against Progressive in recent years, for a myriad of reasons. One trending subject of these is how Progressive values totaled vehicles.
If your car is totaled, you’re given an actual cash value (ACV) of the vehicle at the time of loss. So if your vehicle could have been reasonably sold for $20,000 at the moment before the accident, your insurer should pay you out.
Other lawsuits have focused on whether Progressive properly included sales taxes, title fees, registration fees, and other mandatory costs when calculating total-loss settlements. Plaintiffs in these cases argue that policyholders should be compensated not only for the value of the vehicle itself, but also for certain expenses they would incur when replacing it.
Progressive has denied wrongdoing in many of these cases. However, the common theme is determining what a totaled vehicle is truly worth and what costs should be covered after a loss.
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The Biggest Progressive Lawsuits in Recent Years
Here’s a historical record of lawsuits filed by consumers and payouts Progressive has made in recent years.
| Year | Settlement Amount |
Allegations |
| 2024 |
$48 million |
New York drivers alleged that Progressive undervalued totaled vehicles by using a Projected Sold Adjustment. |
| 2024 |
$61 million |
Michigan policyholders claimed Progressive failed to include sales tax, title fees, and registration fees in total-loss payments. |
| 2024 |
$18.3 million |
New York class action alleging Progressive failed to pay the required sales tax on certain total-loss claims. |
| 2025 |
$43 million |
Georgia lawsuit involving allegations that Progressive’s valuation methodology reduced payouts on total-loss claims. |
| 2025 |
$31 million |
Alabama lawsuit alleges that Alabama drivers for totaled vehicles were systematically underpaid by using a “Projected Sold Adjustment” that allegedly reduced vehicle valuations. |
| 2025 |
$3.25 million |
Data breach settlement involving customer information exposed through a third-party vendor. |
| 2025 |
$1.76 million |
New Mexico lawsuit involving uninsured/underinsured motorist coverage premiums. |
Could You Be Eligible for Compensation?
In our research, we found no active class action suits against Progressive that consumers can join. However, if you’re insured by Progressive and possibly run into issues at a later date, consider the following factors when you receive your valuation:
- Comparable vehicle listings used in the valuation
- Any deductions or adjustments applied
- Whether sales tax and other related fees were included in the valuation
- Communications from Progressive regarding settlement calculations
If you receive a class action notice in the future, don’t ignore it. Settlement administrators typically contact consumers directly by mail or email.
How To Choose (and Switch) Insurers
A lawsuit against an insurance company doesn’t mean they are “worse” than others. Large insurers frequently face legal challenges simply because they serve millions of customers.
Instead of focusing on a single lawsuit, look at the bigger picture, including pricing, customer service, claims satisfaction, financial strength, and complaint records. The best insurer for one driver may not be the best fit for another.
If you’re displeased with your current provider, switching insurers is a simple process. Start by comparing quotes from multiple companies and reviewing coverages to ensure you’re making an accurate comparison. Once you’ve selected a new insurance carrier, make sure your new policy is active before canceling your existing coverage.
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Bottom Line
Progressive may continue to face class-action lawsuits over how it values customers’ vehicles. If you have a total loss claim in the future, be sure to keep all documentation. Additionally, don’t disregard any claims you may receive from a law firm regarding any class actions in the future.
