Progressive Marathon Insurance Company and Progressive Michigan Insurance Company have agreed to pay $61 million to resolve two proposed class action lawsuits in Michigan.
The lawsuits alleged the insurers excluded certain fees from total loss claim payments made to policyholders, violating state insurance regulations.
The settlement applies to individuals insured under Progressive Marathon or Progressive Michigan automobile policies in Michigan who filed first-party claims for vehicle damage or theft and received total loss claim payments.
Eligible claims under the Progressive Marathon policy must have been made between July 18, 2013, and July 22, 2024. For the Progressive Michigan policy, the relevant period is from July 18, 2016, to July 22, 2024.
Policyholders eligible for settlement benefits have until Dec. 6, 2024, to submit claim forms. Claims can be filed online or by mail through the official settlement website, UbillusPerryTotalLossClassAction.com.
Individuals can initiate claims by entering their ZIP code and the unique ID provided in the settlement notice. If the notice is unavailable, claims can still be submitted without a unique ID.
Approved claimants will receive a percentage of unpaid sales tax, title, or vehicle registration fees. The percentage—either 45%, 55%, or 65%—will depend on the amount allocated for attorneys’ fees, as stated on the settlement website. The site’s FAQ section provides details on potential payouts based on the total loss date.
Preliminary approval for the settlement was granted in July 2024, with a final approval hearing held on Nov. 21, 2024. Settlement payments will be distributed after the court issues final approval and any appeals are resolved.
The $61 million settlement addresses lawsuits filed in 2019 and 2022 in Michigan state court. The suits claimed Progressive Marathon and Progressive Michigan failed to account for sales tax, title fees, and registration transfer fees when calculating the actual cash value of totaled vehicles, breaching policy agreements.
Do you believe this settlement adequately addresses the allegations? Share your thoughts in the comments.
