- Progressive has recently been a party in a $3.25 million settlement case to resolve a class action lawsuit arising from a data breach.
- According to the court documents, class members may be entitled to a maximum of $5,000 for losses that can be substantiated as being caused by the data breach.
- Before the court, the plaintiffs allege that the Security Incident resulted in the unauthorized access of their personally identifiable information.
Progressive Insurance is one of the leading auto insurers in the U.S. market. But even giant companies are not immune to legal troubles if customers raise allegations of unfair or misleading practices.
In a recent event, Progressive got itself wrapped up in a class action lawsuit, which ended in a settlement. And the amount was pretty impressive – $3.25 million. Also, if you qualify, you can receive a portion of the money.
In this blog, we will break down:
- What the Progressive class action lawsuit is about.
- Who qualifies for compensation.
- How much you might get.
- The steps to claim your payment.
So, if these are some of the things that you want to know about, then you have come to the right place. Therefore, keep on reading this article till the end…
What Is the Progressive Class Action Lawsuit About?
At present, two Progressive Class Action lawsuit Settlements are going on. The first one that you need to know about is the Progressive Total Loss Claim Settlement.
The primary allegations related to this lawsuit were that the company had undervalued the total loss vehicle claims. The amount that the insurance company has settled this form is $43 million.
The second lawsuit that the company faced was the data breach settlement. The primary allegations here were that the private information of the clients had been exposed through a third-party vendor. The settlement amount is $3.25 million.
The lawsuit claims that Progressive misled policyholders or failed to handle claims in a fair manner, resulting in financial harm to certain customers.
While the exact allegations depend on the specific settlement, common claims against insurers like Progressive may include:
- Failing to pay the full value of insurance claims.
- Undervaluing vehicles in total loss cases.
- Not clearly disclosing policy limits or exclusions.
- Unfair claims processing delays.
Progressive has not admitted wrongdoing, but has agreed to a settlement to resolve the case and compensate affected customers.
According to the official settlement page of Progressive, the plaintiffs have come together to allege that “the Security Incident caused their personally identifiable information to be accessed without authorization, purportedly resulting in the invasion of Plaintiffs’ and Settlement Class Members’ privacy, among other alleged harms.”
The settlement with Progressive was given preliminary approval by US District Judge Patricia A. Gaughan on September 19, 2024.
1. Progressive Insurance Debt Collection Class Action Lawsuit
Progressive Direct Insurance Co. came to terms on a $500,000 class action lawsuit settlement to settle the claims that it violated Florida law by sending late-night emails to collect debts.
The agreement serves the residents of Florida who got a debt collection email from Progressive during the time period from 9 p.m. to 8 a.m. local time between July 2, 2022, and May 16, 2025.
The class action suit alleges that Progressive sent emails between 9 p.m. and 8 a.m. in contravention of the Florida Consumer Collection Practices Act (FCCPA). The plaintiff in the case asserts that she received emails from Progressive during these hours.
Without admitting any wrongdoing, Progressive decided to settle a class action lawsuit for $500,000 to resolve the allegations made in the FCCPA.
What’s more, Florida residents who received a debt collection email from the city of Florida between the hours of 9 p.m. and 8 a.m. local time to their residential address during the period from July 2, 2022, to May 16, 2025, are eligible for this settlement.
2. Progressive Data Breach Class Action Lawsuit
Progressive reached an agreement to settle a class action lawsuit that was valued at $3.25 million, finally putting to rest the claims that a data breach might have led to the exposure of consumer information.
The Progressive settlement is a welcome relief to those individuals whose personal information appeared to have been accessed by an unauthorized individual as a result of a security incident involving a third-party call center vendor of Progressive that occurred from May 2021 to May 2023.
The class action suit alleges that Progressive neglected to protect its customers against a data breach that led to the compromise of sensitive information like Social Security numbers and financial account data. The plaintiffs argue that the insurer could have averted the Progressive data breach if it had merely put in place appropriate cybersecurity measures.
Progressive has not admitted to any fault but still made the decision to settle the lawsuit for $3.25 million. Top Class Actions states that, according to the settlement terms agreed upon by Progressive, members of the class may be eligible for a maximum of $5,000 in documented losses that are directly related to the data breach. The losses may consist of fraudulent charges, identity theft damages, credit-related expenses, and so on.
What Is The Progressive Class Action Lawsuit Settlement?
A lawsuit’s information states that on May 19, 2023, the company was informed that certain call center representatives working for a third-party service provider had disclosed the workers’ Progressive access credentials to individuals not employed by the vendor.
According to the class action, the unauthorized parties may have had access to the private data of Progressive customers who contacted the call center, including their:
- Names.
- Dates of birth.
- Email addresses.
- Social Security numbers.
- Driver’s license numbers.
- Financial details (such as account numbers and credit or debit card numbers).
As per the court documents, “Defendant failed to take the necessary precautions required to safeguard and protect Plaintiff’s and the other Class Members’ Private Information from unauthorized access, including failing to supervise, monitor, and oversee all third-parties it hired who had access to Plaintiff’s and the Class’s PII.”
The $3,250,000 class action settlement amount covers all people in the United States who Progressive personally informed that an unauthorized individual might have accessed their private data.
And they should have explained that it was a result of the security incident involving the third-party call center vendor TTEC that occurred between May 2021 and May 2023.
Eligible individuals who want to get a share from the Progressive settlement fund should first submit a claim form before February 18, 2025.
Who Is Eligible for the Settlement?
Eligibility depends on the terms of the specific Progressive class action settlement you are applying for. In most cases, you may qualify if you:
- Were a Progressive policyholder during the period covered by the lawsuit
- Filed a claim that was undervalued or improperly handled, according to the lawsuit’s claims
- Meet location requirements, such as living in or having an insured vehicle in a certain state
- Can provide claim or policy details for verification
Tip: Check the official settlement website or court documents to confirm the exact dates and conditions.
How Much Money Could You Get In The Progressive Class Action Lawsuit Settlement?
The amount you receive depends on several factors:
- The total settlement fund size: how much money Progressive has agreed to pay out
- Number of eligible claimants: the more people who qualify, the smaller the per-person payment
- Your individual claim value: in some cases, payments are proportional to how much you lost
Example: If the total fund is $20 million and 200,000 people file valid claims, the average payout could be around $100 — but individual amounts vary.
According to ClassAction.org, class members of the Progressive settlement who file a claim form that is timely and valid will be able to obtain a pro rata. This is primarily an equal share, payment from the settlement fund of $500,000.
Additionally, as per the settlement website, the money that will be paid to the class members who are entitled to receive the settlement will be at most $1,000 for each person.
How to Claim Your Progressive Class Action Lawsuit Settlement Money?
If you are eligible to claim your settlement amount in the Progressive class action, then you need to know the steps for the same. Here are the steps that you need to follow:
1. Confirm Your Eligibility: Visit the official settlement website (often listed in court notices or news updates) and check the criteria.
2. Gather Documentation: You may need:
- Your Progressive policy number
- Claim reference numbers
- Proof of loss or repair estimates
3. Submit Your Claim Form: You can usually file your claim online or by mail. Make sure to:
- Fill in all required fields
- Upload or attach proof documents
- Submit before the deadline
4. Wait for Processing: The settlement administrator will review your claim, and you’ll receive your payment via check or direct deposit after final court approval.
Important Deadlines In The Progressive Class Action Lawsuit You Should Know
Class action settlements have strict deadlines for:
- Claim submission: Usually 30–90 days from notice
- Opt-out requests: If you don’t want to be part of the settlement
- Objection filings: If you disagree with the terms
Missing these deadlines means you could lose your right to compensation.
But what happens if you do not submit a claim? Well, I have the perfect answer for you! If you don’t submit a claim:
- You won’t receive any payment.
- You may still be bound by the settlement terms, meaning you can’t sue Progressive for the same issue later.
Frequently Asked Questions (FAQs):
Here are some of the questions that most people ask about the Progressive Class Action Lawsuit Settlement:
Check the official settlement notice or website, which lists the exact eligibility period and conditions.
No. Filing for compensation in a class action settlement doesn’t affect your existing coverage or rates.
Not necessarily. Most settlements are designed for individuals to file claims on their own. However, if you have questions about your eligibility or payment amount, a lawyer can help.
Payouts usually happen a few months after the claim deadline, once the court gives final approval.
Only if you opt out of the settlement before the opt-out deadline. If you remain in the settlement, you typically give up the right to sue for the same issue.
Key Things to Remember Before Filing
Getting your share of the Progressive class action settlement isn’t complicated — but you have to act quickly, follow instructions, and make sure you meet the eligibility requirements.
- Use the official settlement website only: Beware of scam sites asking for money or personal banking details
- Provide accurate information: False claims can be rejected or lead to legal issues
- Check your spam folder: Settlement notices or confirmations may land there
If you think you might qualify, gather your documents and submit your claim before the deadline.
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