McElroy et al v. Progressive Direct Insurance Company

This class action was filed on April 25, 2023, in the U.S. District Court for the Eastern District of Pennsylvania. Plaintiff Dominique McElroy and other policyholders allege that Progressive Direct Insurance Company systematically undervalues total-loss vehicle claims. The suit contends that Progressive uses valuation reports from CCC Intelligent Solutions that apply improper "projected adjustments" to reduce payouts, thereby breaching its insurance contracts and the duty of good faith. The plaintiffs seek compensatory damages and injunctive relief on behalf of all Pennsylvania insureds who suffered similar underpayments. The case highlights concerns over insurer-controlled valuation tools that may unfairly depress settlement amounts.

The case remains in active litigation as of 2026, with motions practice and discovery ongoing; no final judgment has been entered.

Whether Progressive's use of CCC valuation reports with projected adjustments constitutes a breach of contract and bad faith by systematically underpaying actual cash value for total-loss vehicles.

The lawsuit has drawn public attention to the fairness of total-loss claim practices in the auto insurance industry. It has prompted consumer advocacy groups to call for greater transparency in valuation methods and may influence regulatory scrutiny over how insurers calculate vehicle worth, potentially reshaping settlement standards nationwide.