Progressive Marathon Insurance Company and Progressive Michigan Insurance Company have agreed to a $61 million settlement to resolve two proposed class action lawsuits in Michigan, alleging the companies improperly excluded fees from total loss claim payments.
The lawsuits, filed in 2019 and 2022, accused Progressive of omitting sales tax, title fees and vehicle registration fees from payouts, violating state insurance regulations. The settlement applies to policyholders insured under Progressive Marathon or Progressive Michigan automobile policies who filed first-party claims for total vehicle losses during specific periods.
Eligible claims under the Progressive Marathon policy cover losses between July 18, 2013, and July 22, 2024, while Progressive Michigan policy claims span July 18, 2016, to July 22, 2024. Impacted policyholders have until Dec. 6, 2024, to file claims either online or by mail through the official settlement website.
Policyholders can initiate claims by entering their ZIP code and the unique ID from their settlement notice. Claims may also be submitted without a unique ID. Approved claimants will receive a percentage of unpaid fees -- 45%, 55% or 65% -- depending on attorneys’ fees and the allocation outlined on the settlement website. The FAQ section of the site provides details on potential payouts based on the date of the total loss.
Preliminary approval for the settlement was granted in July, with a final approval hearing held Nov. 21. Settlement payments will be distributed after final court approval and the resolution of any appeals.
The lawsuits argued Progressive failed to account for fees required to calculate the actual cash value of totaled vehicles, breaching policy agreements. By addressing these claims, Progressive aims to close a contentious chapter for policyholders impacted by the discrepancies.
