Progressive Insurance's Tarnished Image

August 21, 2012  |  John T. Buchman

I was just checking the latest news when I came across the following article from CNN Money: Progressive settles with accident victim’s family after tale went viral
Progressive Insurance finally paid the victim of a family under its “under-insured” motorist coverage after forcing the victim’s family to go to trial.  A young woman was killed when another driver ran a red light.  The victim’s brother was offended when his sister’s insurance company, Progressive, actively participated in the negligent driver’s legal defense.  The article points out how poorly Progressive handled the case and the resulting public relations nightmare that followed after the victim’s brother posted on the internet an account of what the family had to go through to get Progressive to pay.
Unfortunately, this is too common an occurrence, especially before Minnesota recently enacted a “good faith” statute to encourage insurance companies to properly evaluate and pay uninsured and underinsured motorist claims.  Too often insurance companies force such claimants to try their cases because they believe they do not face any greater exposure than their policy limits. 
Minnesota’s new “good faith” statute provides, in some circumstances, the opportunity for such injured parties to recover additional amounts from insurance companies that resort to such tactics.  While insurance companies spend millions of dollars representing to the public a favorable image through their advertising, unfortunately, their behavior is often at odds with their advertisements.
~John T. Buchman
Personal Injury Attorney