Progressive Select Incomplete Payment of Vehicle ACV Class Action

This class action is one of a number of recent ones taking issue with insurance companies’ payments for the actual cash value (ACV) of vehicles that are deemed total losses. In this case, the complaint alleges that Progressive Select Insurance Company does not include title and tag fees, which are necessary expenses when paying for a new vehicle, and does not take into consideration the document fees car dealerships often charge.

Plaintiff Thomas J Pieczonka had an auto insurance policy with Progressive Select that included both collision and comprehensive coverage. The complaint says, “The Policy does not define ACV or market value, nor does it address sales tax, fees, or other reasonable expenses to replace the lost vehicle.”

Pieczonka had a covered loss on July 1, 2019. The complaint doesn’t mention the make or model of the vehicle but says it was declared a total loss. The complaint notes, “In the Settlement Summary, Progressive agreed to pay a total of $15,789.40, which includes an amount of $969.21 for sales tax but $0 for fees.”

Also, Pieczonka lives in Florida. According to the complaint, Florida law “requires that, when insurers pay claims based off of the ACV, they include amounts for sales tax, title fees, and tag fees, as well as certain other reasonable expenses, incurred in replacing a vehicle.”

In Florida, the complaint says, “it is customary practice in Florida for car dealerships to charge so-called documentation fees or processing fees. The average documentation/processing fee in Florida is approximately $670.”

The complaint says, “Florida law, as with the law in other states, requires the ACV to incorporate costs reasonably likely to be incurred in vehicle replacement, including sales tax, title transfer fees, tag transfer fees, and other fees reasonably likely to be incurred in replacing the loss.” It quotes from an earlier case’s findings as saying that “failure to include mandatory state fees constitutes a breach of the promise to pay ACV.”

The class for this action is all persons in the US who insured a vehicle for physical damage coverage under a Progressive auto policy and had a first-party total loss of a covered vehicle at any time since December 9, 2011, whose claims were adjusted by Progressive as total losses, but who were not paid state-mandated or other necessary costs of replacing the vehicle as part of the settlement.

The sole count in the complaint is breach of contract.

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

Progressive Select Incomplete Payment of Vehicle ACV Complaint

December 23, 2019

This class action is one of a number of recent ones taking issue with insurance companies’ payments for the actual cash value (ACV) of vehicles that are deemed total losses. In this case, the complaint alleges that Progressive Select Insurance Company does not include title and tag fees, which are necessary expenses when paying for a new vehicle, and does not take into consideration the document fees car dealerships often charge. 

progressive_select_vehicle_acv_complaint.pdf

Case Event History

Progressive Select Incomplete Payment of Vehicle ACV Complaint

December 23, 2019

This class action is one of a number of recent ones taking issue with insurance companies’ payments for the actual cash value (ACV) of vehicles that are deemed total losses. In this case, the complaint alleges that Progressive Select Insurance Company does not include title and tag fees, which are necessary expenses when paying for a new vehicle, and does not take into consideration the document fees car dealerships often charge. 

progressive_select_vehicle_acv_complaint.pdf
Tags: Actual Cash Value, Auto Insurance, Incomplete payment of benefits due, Insurance