Progressive Insurance has agreed to pay $48 million to settle a class-action lawsuit filed by 93,000 New York policyholders who claimed the insurer underpaid their total loss claims. The lawsuit alleged that Progressive used a third-party software to calculate the actual cash value of vehicles, resulting in a 6.5% underpayment. The settlement covers claims filed since July 28, 2015, and policyholders can expect to receive approximately $335 each. Progressive has denied any wrongdoing and maintains that it complied with all auto insurance policies and laws.
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