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Progressive Settles Class-Action Suit In Massachusetts

February 2, 2016

SPRINGFIELD — Two Springfield law firms have settled a federal class-action lawsuit against Progressive Insurance that has the potential to see a payment of more than $8 million to 4,300 Massachusetts residents in an ongoing dispute over auto insurance coverage.

The two firms, Alekman DiTusa LLC and Connor, Morneau and Olin LLC, filed suit against Progressive Direct Insurance Company, claiming that between 2008 and 2010, the insurance company deceptively had customers agree to an $8,000 deductible for injury claims resulting from car accidents.

Ryan Alekman said the settlement, agreed to on Friday, brings to an end a four-year dispute affecting 4,311 people in Massachusetts.

Each of the people listed in the suit, named “Wanda Estrada, et al v. Progressive Direct Insurance Company,” is eligible for a payment of $1,875 provided they file by the end of the month. If all of the claims are filed, the payout by Progressive will be $8.08 million.

In addition to the money for claims, Progressive also agreed to pay all legal fees.

According to court documents, the company agreed to the settlement to bring an end to the court action but admitted to no wrongdoing. A spokesman for Progressive Direct Insurance could not be reached for comment.

The 4,311 class action members were all people who purchased Progressive Insurance between 2008 and 2010 and who submitted an injury claim as a result of an accident but had it denied.

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