Progressive Direct Insurance Company sells auto insurance in many states, but this class action concerns payouts for total losses to Alabama residents. The complaint alleges that Progressive refuses to pay certain Additional Fees that it is required to pay on total losses.
The class for this action are Alabama residents who were first-party insureds under Progressive direct Automobile Liability Insurance Policies and who also (1) incurred first-party total loss claim (2) for which Progressive Direct did not properly pay all additional fees as part of its settlement, and (3) where the total loss claim occurred between June 10, 2016 and the present.
The plaintiff in this case, Michael Smith, lives in Alabama. He insured his 2013 Ram 1500 SLT 4 Door Quad Cab 6 vehicle with Progressive Direct, under a policy for private passenger auto physical damage, including comprehensive and collision coverage.
According to the complaint, sometime around August 13, 2016, he was in an accident that totaled the truck.
When a vehicle is totaled in an accident, the complaint alleges that the insurer must include in the payout not just the value of the vehicle, but other amounts connected with replacing and registering it. It quotes Alabama’s Total Loss Regulation in the Alabama Administrative Code as saying that “the insurer shall pay all applicable taxes, license fees and other fees incident to transfer of evidence of the ownership of the automobile paid, at no cost, other than any deductible provided in the policy.”
These fees would include fees paid to register a replacement vehicle, the complaint alleges. In Alabama, when people are registering a motor vehicle, the complaint says, they are required to pay additional state, county, city, and license fees, tag fees, and school fees. All of these, the complaint claims, are additional fees that the law requires Progressive Direct to pay.
A copy of the Settlement Summary given to Smith by Progressive Direct was attached to the complaint at filing as Exhibit C. Progressive Direct determined the vehicle’s base value to be $23,669.28. To figure its payout, the complaint claims, it added a sales tax amount for a total of $24,368,97.
“However,” the complaint alleges, “Progressive refused to pay the Additional Fees asserted with [Smith’s] Total Loss.” The complaint asserts that this is Progressive Direct’s “standard and practice” for first-party total losses in Alabama.
The sole count in this case is breach of contract, that it, the complaint claims Progressive Direct breached its insurance contract with Smith by not paying him all amounts to which he was entitled.
Article Type: LawsuitTopic: Insurance
Most Recent Case Event
Progressive Direct Additional Fees on Total Losses Alabama Complaint
June 10, 2022
Progressive Direct Insurance Company sells auto insurance in many states, but this class action concerns payouts for total losses to Alabama residents. The complaint alleges that Progressive refuses to pay certain Additional Fees that it is required to pay on total losses.
Progressive Direct Additional Fees on Total Losses Alabama ComplaintCase Event History
Progressive Direct Additional Fees on Total Losses Alabama Complaint
June 10, 2022
Progressive Direct Insurance Company sells auto insurance in many states, but this class action concerns payouts for total losses to Alabama residents. The complaint alleges that Progressive refuses to pay certain Additional Fees that it is required to pay on total losses.
Progressive Direct Additional Fees on Total Losses Alabama Complaint