A MAJOR insurance company has agreed to a huge payout following the settlement of a class action lawsuit.
The company was accused of paying policyholders less than they were owed, through using a flawed methodology which undervalued their total loss claims.
Essentially, this means that they paid policyholders less than the actual cash value of their vehicle for a total loss claim.
The court determined that they were in breach of the company’s own policies, as well as being in breach of the covenant of “good faith and fair dealing.”
Progressive Premium Insurance Co. has agreed to a $43 million payout following the successful class action suit.
They have not admitted any wrongdoing but have agreed to the payout to resolve the lawsuit.
The class action lawsuit covers Georgia residents who made a first-party claim on a vehicle based on and Instant Report from Mitchell with a Projected Sold Adjustment applied to at least one comparable vehicle.
It was brought against the company in October 2021 as part of two related class action suits, before they were consolidated into one claim in October 2022.
A notice was sent to eligible claimants on March 31, 2025 which included an estimated payment amount.
Class members can expect a cash payout for an estimated $173 although this is subject to the number of eligible participants.
Participants do not need to fill out a claim form to receive payment, and class members who do not exclude themselves will automatically receive a payment.
If you do decide to exclude yourself, you maintain your right to sue the defendants in a separate lawsuit.
Claimants are automatically enrolled in the settlement unless action is taken to voluntarily exclude themselves.
Payments will be mailed to the address kept on file unless you opt for an electronic form such as PayPal, Venmo, or a direct deposit to your bank account.
Those eligible are Georgia residents who made a first-party claim on a Progressive Mountain Insurance Co. policy between October 11, 2025 and February 18, 2025.
It also covers Georgians who made a first-party claim on a Progressive Premier Insurance Co. of Illinois policy between June 8, 2016 and February 18, 2025.
After legal fees, approximately $28 million from the settlement will be given to class members.
The case was heard at the U.S. District Court for the Northern District of Georgia and concluded with a final hearing on May 15, 2025.
The deadline to object to the settlement, or to exclude yourself from the claim, has already passed.
It comes following several other other settlements that motors could be entitled to.
General Motors recently paid drivers up to $12,000 after a $35 million engine defect settlement as faulty fuel pumps were installed which caused engine failures.
BMW also settled a $6 million lawsuit after they were accused of failing to comply with environmental requirements.
GettyClaimants can expect payment in the post[/caption] Read More Details
Finally We wish PressBee provided you with enough information of ( Drivers are in for $173 payout as $43 million settlement is approved – and you don’t even have to fill out form )
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