Progressive Direct Insurance Co. is facing a class-action lawsuit in Massachusetts for allegedly refusing to provide collision coverage to drivers, in violation of state law. The lawsuit, filed in Suffolk County Superior Court, claims that Progressive rejected requests for collision insurance based on a “binding restriction,” without specifying the legal grounds for this refusal or explaining how it could override Massachusetts requirements.
Under Massachusetts law, insurance carriers offering auto liability policies are generally required to make physical damage coverage available. This includes collision, limited collision, fire, theft, and comprehensive insurance. State statute outlines only six specific reasons insurers can legally deny collision coverage.
These justifiable refusals are largely limited to cases involving individuals convicted of insurance fraud, theft, and certain driving violations, as well as vehicles with salvage titles or high-theft risk vehicles lacking sufficient anti-theft protections. According to the complaint, none of these exceptions apply to members of the proposed class, which could include hundreds of drivers.
The case centers around Massachusetts Progressive Direct customers allegedly denied the option to purchase collision coverage because of the “binding restriction” from Nov. 4, 2020, to the present.
The lawsuit highlights the experience of Danielle Gondola, who purchased a six-month Progressive policy beginning Dec. 20, 2023. Gondola reportedly sought to add collision coverage, which she claims Progressive refused to offer. Less than a month after her policy took effect, Gondola’s car was involved in a three-vehicle accident that totaled her vehicle. Her subsequent claim was denied by Progressive.
The lawsuit follows recent developments at Progressive, which reported a significant increase in its underwriting margin, a rise of nearly 1.6 million in-force policies, and record spending on advertising in the third quarter of 2024, according to company reports. Progressive’s underwriting units currently hold an A+ (Superior) financial strength rating from A.M. Best.
In 2023, Progressive was among the top five auto insurers in Massachusetts, holding a 7.93% share of direct premiums written. Other major providers included Mapfre North America Group, Berkshire Hathaway Insurance Group, Safety Group, and Liberty Mutual Insurance Cos.
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