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Payment update: Payments were issued to approved claimants on April 26, 2026.
Update: The Progressive Insurance total loss settlement was granted final approval on Sept. 25, 2025.
Consumers who were insured by Progressive in Arkansas and their vehicle was declared a total loss between August 4, 2017 and May 19, 2025, may qualify to submit a claim for a cash payment averaging $484 to $519 from a class action settlement.
Progressive Northwestern Insurance Co. and related Progressive entities agreed to pay $13.21 million to settle a class action lawsuit alleging that they underpaid Arkansas policyholders on total loss vehicle claims by applying improper projected sold adjustments (PSA) to the actual cash value (ACV) of vehicles.
Who can file a claim for a Progressive settlement payout?
Class members must meet one or more the following criteria:
- They are an Arkansas citizen insured by Progressive Northwestern Insurance, who at any time between Aug. 4, 2017 and May 19, 2025, received compensation for a total loss vehicle where the ACV was reduced by a PSA in a Mitchell report.
- They are an Arkansas citizen insured by Progressive Direct Insurance, who at any time between Oct. 4, 2019 and May 19, 2025, received compensation for a total loss vehicle with a PSA deduction.
- They are an Arkansas citizen insured by Progressive Casualty Insurance, Progressive Specialty Insurance, or Progressive Classic Insurance Co, who at any time between May 19, 2020 and May 19, 2025, received compensation for a total loss vehicle with a PSA deduction.
How much are settlement payments?
Cash payment: Class members can submit a claim to receive 100% of the PSA impact amount for their total loss claim. The PSA impact amount is calculated as a percentage of the ACV of the total loss vehicle, as determined by Progressive’s records:
- Progressive Northwestern Insurance policy holders: The PSA impact amount is 4.02% of the actual cash value of the vehicle (ACV). Estimated payment amount is $519.
- All other Progressive policy holders: The PSA impact amount is 3.17% of the actual cash value of the vehicle (ACV). Estimated payment amount is $484.
How to claim a class action rebate
To claim a settlement payment, class members can file a claim online or print the PDF claim form.pdf) to complete and mail to the settlement administrator.
Settlement administrator's mailing address: Knight v. Progressive Northwestern Ins. Co. Settlement Administrator, P.O. Box 2168, Portland, OR 97208-2168
The claim deadline is Oct. 25, 2025.
Required claim information
The Progressive policy number or Progressive total loss claim number required on claim form.
Payout options
Class members who submitted a valid claim could choose their payment method:
- Electronic payment
- Paper check mailed to the address provided
Settlement fund breakdown
The $13,211,773 settlement fund will include:
- Settlement administration costs: To be determined
- Attorneys’ fees: $3,963,531.90
- Attorneys’ expenses: $118,420.68
- Service awards to class representatives: $15,000
- Payments to approved claimants: Remaining settlement funds
Important dates
- Deadline to opt out: Aug. 7, 2025
- Final approval/fairness hearing: Sept. 25, 2025
- Deadline to submit a claim form: Oct. 25, 2025
When is the Progressive Insurance settlement payout date?
Payments will be issued to approved claimants approximately 75 days after the court grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged that Progressive systematically underpaid Arkansas policyholders for total loss vehicle claims by applying projected sold adjustments to the ACV, which plaintiffs claimed was improper and in breach of Progressive’s policies and the covenant of good faith and fair dealing.
Progressive denied the allegations but agreed to settle to avoid the expense and uncertainty of litigation.
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