Texas Man Claims Progressive Undervalues Totaled Vehicles

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Progressive Corporation, two of its affiliates, and Mitchell International, Inc. have been named as defendants in a proposed class action lawsuit that claims the insurance companies partnered with Mitchell to artificially deflate the “actual cash value” (ACV) of vehicles for which consumers have submitted “total loss” claims. The plaintiff, a Texas resident, says his 2016 GMC Yukon was exposed to flooding during Hurricane Harvey and, after being evaluated by Progressive, was determined a “total loss.” He says Progressive agreed to pay $42,112.17 to settle his claim, when the ACV of his car – based on market value, age, and condition – should have been $44,025.

The suit argues that Progressive licenses a product from Mitchell to determine the ACV of “total loss” vehicles, known as Work Center Total Loss, that consistently produces “significantly lower” ACVs than other valuation models. As a result, the complaint alleges, consumers insured under Progressive’s policies are cheated out of the true value of their damaged vehicles.