Progressive paid $48 million to settle underpaid total loss claims. Here's how to document your property or auto claim and recover what you're owed.
⚠️ Progressive paid $48 million to 93,000 New York policyholders over underpaid total loss claims. Valuation software applied a 6.5% "Projected Sold Adjustment" that reduced payouts. A separate $13.8 million settlement followed. Challenge your offer with documentation.
Progressive agreed to a $48 million settlement with approximately 93,000 New York policyholders who claimed the insurer underpaid total loss claims on vehicles since July 2015. Plaintiffs alleged Progressive used third-party valuation software (Mitchell International's WorkCenter Total Loss) that applied an improper "Projected Sold Adjustment" (PSA) when calculating vehicle values. This adjustment allegedly resulted in systematic underpayments of approximately 6.5%. Mitchell's reports stated the PSA was meant to "reflect consumer purchasing behavior" in price negotiations, though plaintiffs argued it was deceptive and contrary to industry standards. Progressive denied wrongdoing and noted the software was approved by New York's insurance department, but the settlement speaks for itself. A separate $13.8 million settlement was reached in 2025 over similar allegations. For property claims, the same principle applies: valuation tools can undervalue—your documentation can correct that.
Understanding these patterns helps. When you know that Progressive has paid millions to resolve underpayment claims, you can prepare documentation that forces fair valuation. Policyholders who submit line-by-line comparisons, contractor estimates, and professional demand letters often recover $15,000-$50,000 or more.
Accepting Progressive's valuation without challenge can cost you 6.5% or more:
Total loss or property—software-based estimate
With 6.5% PSA removed + market documentation
Per claim—gaps compound on larger losses
Independent documentation matters. Progressive has settled when policyholders challenged valuation:
Get comparable sales, dealer quotes, and independent assessments. If Progressive used software that applied adjustments to reduce value, your documentation exposes the gap. Submit a demand showing fair market value and request correction.
For property claims, compare Progressive's estimate against contractor estimates line by line. Document missing scope items, underpriced labor, and quantity errors. Submit with photos and market rate evidence.
Submit a professional demand letter citing policy language, itemizing the shortfall, and stating the exact amount requested. Progressive has paid millions when policyholders challenged—your documentation can trigger the same response.
For total loss: comparable sales, dealer quotes, vehicle condition documentation. For property: at least three contractor estimates with complete scope and current market pricing.
Compare Progressive's estimate or valuation line by line. Note excluded items, low quantities, and below-market pricing. Create a clear document showing the dollar gap. The 6.5% PSA is one example—your claim may have other gaps.
Send the comparison, independent valuations, photos, and a professional demand letter. Reference policy provisions and state the additional amount requested. Set a 15-30 day response deadline.
If Progressive refuses to adjust, escalate to a supervisor and file a complaint with your state Department of Insurance. Progressive has settled when challenged—documentation strengthens your position.
Get the tools and templates to document your Progressive claim. Policyholders have recovered thousands more when they challenge underpayment with evidence.
Start Your Claim ReviewProgressive settled a $48 million case with 93,000 New York policyholders who alleged underpayment from valuation software applying an improper "Projected Sold Adjustment" (PSA), resulting in systematic underpayments of about 6.5%. Document your vehicle's value with comparable sales and challenge the methodology.
The PSA was a software adjustment Progressive used that allegedly reduced vehicle values by reflecting "consumer purchasing behavior" in negotiations. Plaintiffs argued it was deceptive. Progressive has settled for $48 million and $13.8 million over these practices. Your documentation can expose similar gaps.
Submit a line-by-line estimate comparison, contractor estimates, market rate documentation, and a professional demand letter. Progressive has paid millions to resolve underpayment claims—documentation that exposes valuation gaps can force adjustment.
Progressive settled without admitting fault, but the settlement demonstrates that policyholders successfully challenged underpayment. You can do the same with proper documentation. Don't accept the first offer—challenge it with evidence.
Policyholders who document properly often recover $15,000-$50,000 or more. The New York settlement averaged about $335 per person after fees, but individual gaps can be much larger. Property and total loss claims both show significant underpayment when not challenged.
Progressive noted its software was approved by New York's insurance department, but approval doesn't prevent underpayment. You can still challenge the output with independent documentation—comparable sales, dealer quotes, contractor estimates—and demand fair value.