Insurance
Home›Insurance›Liability Insurance›Progressive sued for alleged underinsured payout short…
Progressive sued for alleged underinsured payout shortfall in Florida case
A binding arbitration set the policyholder’s personal injury damages at $200,000, but she says she received only 33.55% due to competing claims exceeding available limits.
A Florida policyholder is suing Progressive, alleging the insurer refused to pay what she says is a $132,651.73 shortfall tied to an underinsured motorist claim after a binding arbitration determined her damages to be $200,000, according to a complaint reported by Insurance Business.
The dispute stems from a Feb. 15, 2025 crash in which a van ran a stop sign and struck a pickup truck where the claimant was a passenger. The complaint says the crash triggered one wrongful death claim and twelve personal injury claims against two liability policies, and that with available coverage falling short of total claims, the case moved into Florida’s limited-coverage process under Section 624.155(6).
Insurance Business reports that, after mediation failed, a binding arbitration was held on July 16, 2025. The filing states the total damages across claimants exceeded available coverage, so each claimant recovered a prorated 33.55%, which the complaint says left the policyholder’s share at $67,348.27.
The policyholder then sought the gap under uninsured motor vehicle coverage on her parents’ Progressive policy, which she says provides up to $200,000 per insured and treats a vehicle as underinsured when applicable limits are less than damages legally entitled to recover. The complaint says she demanded the $132,651.73 on Oct. 21, 2025, Progressive did not pay, later requested medical records and itemized bills, and in January 2026 offered $2,000, arguing she was overcompensated by the arbitration amount.