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  1. #1
    Join Date
    Nov 2005
    Posts
    172

    Progressive Insurance Subrogation dealings

    Ok, just a question. Anybody insured with Progressive ever have an accident with an uninsured driver? I was hit by an individual last March who just started paying back my insurance company ( progressive ) this August. Of course, it was sent to their legal department to collect from her starting in April. At this point they have collected about 2000 dollars from her ( owes about 3600 ), but they refuse to give me back my deductible until she pays the whole amount. All the time leading up to this point I was told as soon as they collect the deductible amount it would be sent to me, as that is the priority. Is this standard for Progressive and other insurance companies or they just feeding me a load? I am just curious.

    Thanks!

  2. #2
    Join Date
    Jun 2006
    Posts
    36

    Re: Progressive Insurance Subrogation dealings

    I have Progressive and was in one accident.. a drunk driver who caused a 6 car wreck. I had the least damage and told them I would take care of it myself, as it was not worth making a claim on and the drunk driver's insurance would not be enough to replace the 3 totaled vehicles, much less pay for my minor scrape..

    My issue with Progressive is they use 'racial' zip code profiling, which is illegal in some states they use it in, including California. If you live in an area that has a high minority population, they will raise your premiums as much as 250 percent.

  3. #3

    Re: Progressive Insurance Subrogation dealings

    I have worked in the insurance industry for years. I do not believe the law on your situation is clear. I believe it is at the discretion of the insurance company.

    Truthfully, the companies I have worked for in the past would have probably reimbursed you the full amount by now as a courtesy. Generally, an insurance company is not going to reimburse you if they have not been reimbursed themselves. However, your situation is rare and someone there should recognize that.

    Generally, a rule of thumb for a big company like Progressive is that if you yell long enough and loud enough, someone will get you what you want. You can also contact your State Insurance Department and advise them of the situation. The state cannot force them to reimburse you, but Progressive must respond to the complaint or they will get fined. I can tell you from experience that insurance companies don't like getting state complaints and you will definitely get their attention.

    Good Luck!

  4. #4
    Join Date
    Mar 2007
    Location
    Florida
    Posts
    1

    Re: Progressive Insurance Subrogation dealings

    It is common for insurers to make a subrogation effort to recover the amount of the full loss, including the amount of the deductible, even though they have no right or obligation to collect what they do not have a subroated interest in. That generally is a customer service that they provide to you, over and above policy terms and conditions.

    In so far as Progressive paid you the $3600 (less your deductible), they have an interest in collecting what they paid to you from the responsible party first. Once they have recovered all of what they paid on your claim from that responsible, anything in excess of that should be reimbursed to you.

    Often this is not an issue that is visible to the policy holder, in that the subrogation claim of your insurer is generally made against the auto insurer of the responsible party. When they agree on who is at fault and resolve that subrogation claim, it is paid in full to your insurer by the responsible party's insurer (inclusive of the amount of your deductible). At that point, your insurer simply takes their share from that recovery and then reimburses you for the deductible at the same time.

  5. #5

    Re: Progressive Insurance Subrogation dealings

    I can assure you that insurance companies do not engage in zip code profiling.

    Insurance companies have their rates set according to information given by actuaries. The actuary analyzes claims/losses (caused by accidents, fire, theft and vandalism) incurred by the company in a specific area. They also use gender, whether or not a person is married, age, credit ratings and homeownership status in determining the risk factors which set premiums. Having plain old bad luck can affect premiums too. I have had several clients become upset over an increase in premium due to not at fault incidences.

    Sadly, in the year 2007 our society is still very segregated so it may appear to be a race issue. Having worked in the isurance industry for many years I can tell you that is not the case.

    Quote Originally Posted by CougarClaws View Post
    I have Progressive and was in one accident.. a drunk driver who caused a 6 car wreck. I had the least damage and told them I would take care of it myself, as it was not worth making a claim on and the drunk driver's insurance would not be enough to replace the 3 totaled vehicles, much less pay for my minor scrape..

    My issue with Progressive is they use 'racial' zip code profiling, which is illegal in some states they use it in, including California. If you live in an area that has a high minority population, they will raise your premiums as much as 250 percent.

  6. #6
    Join Date
    Jul 2006
    Posts
    88

    Re: Progressive Insurance Subrogation dealings

    Progressive is a good company been insured with them since 2003 been in 2 not at fault accidents since than one with a uninsured driver the other with a drunk driver both times progressive got me the money quick and sent collections after the other drivers. The only complaint I have with them is on renewal half the time they dont send the insurance cards and I have to call and get them to send the cards. The only 2 insurance companies I would stay away from are Farmers and safeco

    Farmers tried to say I didnt have insurance after I was sideswipped by a semi truck

    Safeco refused to pay for over 6 months

    at the time of both of those I was paid in full policys in hand

    farmers 1996
    safeco 2002

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