Progressive Insurance Bad Faith Documented By Comedian
Progressive Insurance is currently the subject of intense media scrutiny following the revelation of a case in which the insurer may have actually assisted in legal action against a deceased client of theirs that was badly injured in a car accident.
The potential bad faith insurance issue regarding Progressive came to light last week when comedian Matt Fisher posted a letter to his Tumblr account that was titled “My Sister Paid Progressive Insurance to Defend her Killer.” In the post, Fisher describes the June 19, 2010 car accident that killed his sister, Katie. Fault for the accident seemed to lie in the hands of the other driver who ran a red light. The other driver was also underinsured.
While the other driver’s insurance immediately settled and paid out what the insurance policy would allow, Progressive refused to pay, even though Katie had an insurance policy with the company that covered accidents involving underinsured drivers.
“Here I address you, Prospective Progressive Insurance Customer,” Fisher wrote in his post. “Someday when you have your accident, I promise that there will be enough wiggle room for Progressive’s bottomless stack of in-house attorneys to make a court case out of it and to hammer at that court case until you or your surviving loved ones run out of money.
Not only did Progressive refuse to pay the insurance claim, but they allegedly went through with an even more morally questionable plan when Fisher’s family sought to recover their insurance claim through the legal system. In Maryland, insurance company’s cannot be sued over money issues, so the family had to file a civil lawsuit against the other driver instead and hope for a settlement.
“Progressive made a series of offers (never higher than 1/3 the amount they owe) and then let it go to a trial. At the trial, the guy who killed my sister was defended by Progressive’s legal team,” Fisher wrote. “If you are insured by Progressive, and they owe you money, they will defend your killer in court in order to not pay you your policy.”Upon the release of the Tumblr post, the internet was quickly awash with comments demanding Progressive to explain its actions and rectify the situation. Thankfully, the online pressure did the trick and Progressive agreed to a sizable settlement with the Fishers on August 17.
While this terrible situation was able to end on slightly positive note, it is important to remember all of the policyholders who have likely not been so lucky and unfairly denied their claim by Progressive, or other major insurance companies.
If you or a loved one has been taken advantage of by an insurance company that has acted in bad faith, it may be worth pursuing legal action. Call Sokolove Law today to learn more about possibly pursuing a bad faith lawsuit. For legal assistance, please call 800-581-6358.