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Progressive Preferred “Projected Sold Adjustments” to ACVs Arizona Class Action

This class action centers on the method for determining the actual cash value (ACV) of totaled vehicles, used by the Progressive Preferred Insurance Company. The complaint alleges that Progressive Preferred applies an arbitrary, unexplained, and unfair “Projected Sold Adjustment” to lower the amount of its payouts.

The class for this action is all persons who made a first-party claim on an insurance policy issued by Progressive Preferred to an Arizona resident who, between the earliest allowable time through the date this action is resolved, received a payout for the total loss of a covered vehicle that was based on a valuation report prepared by Mitchell, where the ACV was decreased by a Projected Sold Adjustment to the prices of the comparable vehicles used to determine the ACV.

When a vehicle is totaled, the insurance company must determine its ACV to arrive at a payout for the insured party. According to the complaint, Progressive Preferred uses valuation reports from Mitchell International, Inc. for this purpose. However, the complaint alleges that the company “systematically thumbs the scale” by applying what it calls a Projected Sold Adjustment.

The plaintiff in this case, Elliott Ambrosio, was in a car wreck on September 10, 2020 and filed a claim with Progressive Preferred. The company declared the vehicle a total loss and Mitchell provided a valuation report on September 15, 2020.

According to the complaint, the “valuation reports purport to contain values for comparable vehicles recently sold or for sale in the claimant’s geographic area.” The valuation amount is then adjusted to reflect differences in equipment, mileage, and configuration between the totaled vehicle and the comparable vehicle.

What the complaint takes issue with is a further adjustment that is applied, the Projected Sold Adjustment. The report for Ambrosio listed five comparable vehicles, the complaint alleges, whose prices were lowered by Projected Sold Adjustments of $807, $666, $761, $570, and $808, respectively.

According to the complaint, Progressive Preferred does not provide any data that would explain these amounts or any industry practices that might justify them. The only explanation given, the complaint says, is on the last page of the report: “Projected Sold Adjustment—an adjustment to reflect consumer purchasing behavior (negotiating a different price than the listed price).”

The amounts are deceptive, the complaint says, because they do not reflect the ACV of the totaled vehicle.

According to the complaint, they also “do not reflect market realities (the context in which ‘consumer behavior’ occurs) and run contrary to customer automobile dealer practices and inventory management, where list prices are priced to market to reflect the intense competition in the context of internet pricing and comparison shopping. A negotiated price discount would be highly atypical…”

Also, the complaint contends that consumers who have totaled their cars need to replace them immediately, and are unlikely to be able to shop around to find a below-market-price replacement. The complaint calls these adjustments “contrary to appraisal standards.”

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

Progressive Preferred “Projected Sold Adjustments” to ACVs Arizona Complaint

March 4, 2022

This class action centers on the method for determining the actual cash value (ACV) of totaled vehicles, used by the Progressive Preferred Insurance Company. The complaint alleges that Progressive Preferred applies an arbitrary, unexplained, and unfair “Projected Sold Adjustment” to lower the amount of its payouts.

Progressive Preferred “Projected Sold Adjustments” to ACVs Arizona Complaint

Case Event History

Progressive Preferred “Projected Sold Adjustments” to ACVs Arizona Complaint

March 4, 2022

This class action centers on the method for determining the actual cash value (ACV) of totaled vehicles, used by the Progressive Preferred Insurance Company. The complaint alleges that Progressive Preferred applies an arbitrary, unexplained, and unfair “Projected Sold Adjustment” to lower the amount of its payouts.

Progressive Preferred “Projected Sold Adjustments” to ACVs Arizona Complaint
Tags: Auto Insurance, Incomplete payment of benefits due, Insurance