Progressive Total Loss Lawsuit: The Undervalued-Payout Claims

The "Projected Sold Adjustment"

When a car is totaled, the insurer is supposed to pay its actual cash value — typically estimated from prices of comparable local vehicles. Class actions allege Progressive, using a valuation vendor’s software, applies a “projected sold adjustment” (PSA) that shaves the listed prices of those comparables downward, on the theory that buyers negotiate discounts off asking prices. Plaintiffs say the PSA is arbitrary, unexplained and contrary to how the used-car market actually works, so it systematically lowers payouts below true value.

A few hundred dollars shaved off each of thousands of total-loss claims adds up, which is why these cases are brought as class actions.

The Litigation and Settlements

The PSA theory has produced a wave of cases against Progressive across multiple states, with settlements reported to exceed $200 million combined. Outcomes have varied: some classes have been certified and settled, while at least one court blocked a proposed class over how the valuation method should be assessed. The core dispute — whether the PSA is a legitimate market adjustment or an improper thumb on the scale — is what each case tests.

Other insurers using the same valuation vendor have faced parallel claims.

What Policyholders Should Know

If your car is totaled, do not assume the first offer is the ceiling. Ask for the valuation report, check the comparables and any “adjustments” against real local listings, and dispute figures that look low — the PSA is exactly the line item these cases challenge. Keep your own comparables and any records of the vehicle’s condition.