Progressive Facing Potential Class-Action Lawsuit Over ACV Calculations

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March 31, 2022—Progressive Insurance faces a potential class-action lawsuit in Pennsylvania for using unexplained adjustments to lower its actual cash value (ACV) calculations in total loss cases.

According to a story by Insurance World, the lawsuit claims Progressive “systematically adjusts the scale” when calculating ACVs by applying “projected sales adjustments” to vehicle prices from comparable occasion.

The plaintiffs claim that the adjustments are “misleading and unexplained” and are “not based on facts, as they are contrary to the pricing and inventory management practices of the used car market”.

The lawsuit was filed March 21, three days after a similar lawsuit was filed against State Farm in an Illinois court. The Progressive lawsuit seeks payments estimated at more than $5 million for Pennsylvania customers, while State Farm plaintiffs seek unspecified benefits for a proposed national class.

According to the plaintiff in the lawsuit, Progressive’s practice violates Pennsylvania consumer protection laws, its own political language and professional standards. 

“Appraisers use advertised prices and only make adjustments based on observed and verifiable data; valuation standards do not permit arbitrary adjustments to the advertised price based on undocumented and unverifiable projections,” the suit states.

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