Progressive Corporation - Controversies

Controversies

In 2002, the company settled with the State of Georgia in a class action lawsuit over diminished value claims brought by policyholders.

In 2007, the company apologized after it was revealed they hired private investigators to infiltrate a church group and pose as congregation members to collect information on litigants seeking redress from the company. Another lawsuit was filed by the litigants over the affair against the company for invasion of privacy and fraud.

In 2009, the company was sued for allegedly deceiving policyholders by employing illegally-operated, unlicensed body shops to make repairs on vehicles for their clients in order to save money. The court ruled in Progressive's favor on two of the counts and the other four were dropped, pending appeal.

In 2012, the company was widely criticized online for how it handled the claims filed by the family of Kaitlynn Fisher. When Kaitlynn Fisher, 24, was hit and killed by a driver who ran a red light in Baltimore, Progressive fought to avoid payment due, with a policy that covered against the possibility of an accident with an underinsured driver. The driver was found to be negligent at trial with Fisher contending that Progressive provided legal assistance to the defense.

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