Progressive NY Sales Tax Settlement (Total Loss Claims)

If you suffered a total loss of a vehicle while insured by Progressive from September 10, 2014, to March 27, 2024, you may be eligible to claim an award from a class action settlement.

Progressive has agreed to pay $3,750,000 to settle a class action lawsuit for alleged breaches of its auto insurance policies in New York by failing to pay the full amount of New York sales tax owed on total loss auto insurance claims.

Who Can Claim an Award?

You may be a Settlement Class Member if, between September 10, 2014, and March 27, 2024, you had a policy underwritten by Progressive issued in New York, submitted a claim that was adjusted as a total loss and settled by Progressive on an actual cash value (ACV) basis, and were paid $0.00 in New York sales tax, or received some amount of sales tax, but less than 8% of the ACV assigned by Progressive to the covered vehicle.

To be more specific, you are eligible if:

• You had a Progressive auto insurance policy in New York.
• You submitted a total loss claim that was settled on an ACV basis.
• You were either not paid any New York sales tax or were paid less than 8% of the ACV.

What Awards Can Class Members Claim?

Progressive will pay Settlement Class Members who were paid $0.00 in New York sales tax (Unpaid Insureds) and who make a valid and timely claim, 77.5% of a Sales Tax Payment equal to 8% of the ACV reflected in Settlement Class Members’ individual settlement summaries for total loss vehicles.

For example, 8% of a $30,000 ACV is $2,400, of which 77.5% or $1,860 is the payment owed to the Unpaid Insured Settlement Class Member.

Progressive will also make available for Settlement Class Members who were paid some amount of sales tax in connection with a total loss (Underpaid Insureds) and who make a valid and timely claim, a fund of $250,000. From this fund, each Underpaid Insured will be paid 77.5% to 100% of a Sales Tax Payment equal to 8% of the ACV reflected in Settlement Class Members’ individual settlement summaries for total loss vehicles, minus the sales tax Progressive already paid to the Underpaid Insured.

If payment of all valid claims by Underpaid Insureds at the rate of 100% will exceed $250,000, Underpaid Insureds will receive a pro rata share of at least 77.5% of the Sales Tax Payment. For example, 8% of a $30,000 ACV is $2,400, so if an Underpaid Insured was previously paid $600 in sales tax, the balance is $1,800, of which 77.5% to 100% or $1,395 to $1,800 is the payment due to the Underpaid Insured under the Settlement.

• Unpaid Insureds: 77.5% of a Sales Tax Payment equal to 8% of the ACV.
• Underpaid Insureds: 77.5% to 100% of a Sales Tax Payment equal to 8% of the ACV, minus the sales tax already paid, subject to a $250,000 fund.

Is Proof Required to Claim the Reward?

Yes, proof is required.

Claimants need to provide their full name, either their Progressive policy number or their claim number for the total loss claim, their current address, and their name and/or address at the time of the total loss claim if different from their current name and/or address.

How to Claim Your Award

To claim your award, you can file a claim online or by mail. To file a claim online, visit the online claim form. If you prefer to file by mail, send your completed claim form to:

Buffington v. Progressive Class Action Settlement

c/o Settlement Administrator

P.O. Box 25411

Santa Ana, CA 92799

Ensure your claim form is postmarked by August 21, 2024.

Submitting a Claim

Follow these steps to submit a claim:

1. Provide your full name.
2. Include either your Progressive policy number or your claim number for the total loss claim.
3. Provide your current address.
4. Include your name and/or address at the time of the total loss claim if different from your current name and/or address.
5. Sign and date the form.
6. Mail the completed form to the address provided, ensuring it is postmarked by August 21, 2024.

$3,750,000 Settlement Fund

The total settlement amount of $3,750,000 will cover the payments to Settlement Class Members, the costs to administer and inform people about the Settlement, attorneys’ fees, costs, and expenses, and a service award to the Class Representative.

• Up to $3.5 million for attorneys’ fees.
• Up to $120,000 for costs and expenses.
• $10,000 for the Class Representative’s service award.

Important Dates

• Fairness Hearing: August 6, 2024
• Deadline to File a Claim: August 21, 2024

Why is There a Class Action Settlement?

This class action settlement was reached because Progressive allegedly breached its auto insurance policies in New York by failing to pay the full amount of New York sales tax owed on total loss auto insurance claims.

What Happens Next?

The Court will hold a Fairness Hearing on August 6, 2024, to decide whether to approve the Settlement. If the Settlement is approved, payments will be distributed to eligible Class Members who have submitted valid claims. If there are objections, they will need to be resolved before payments can be made.