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Oregon appeals court revives motorcyclists' underinsured claims vs Progressive
The ruling said Progressive's “regular use” exclusion improperly narrowed underinsured motorist coverage for motorcycles under Oregon’s coverage-to-coverage statute.
An Oregon appeals court reversed a lower court decision and revived claims by two injured motorcyclists seeking underinsured motorist coverage from Progressive, after the insurer refused to apply UIM benefits. Insurance Business reports the riders were hurt in separate crashes caused by underinsured drivers, and their injuries exceeded the limits of their motorcycle UIM coverage. Both riders also held Progressive auto policies covering other vehicles not involved in the accidents, and sought additional UIM coverage from those policies. Progressive denied the claims based on a “regular use” exclusion. The riders sued for breach of contract, arguing the exclusion reduced benefits below Oregon’s required model policy standards, and the Court of Appeals agreed, reversing on August 19, 2026. The court applied Oregon Revised Statutes 742.504, finding Progressive’s definition of “auto” excluded the riders’ two- and three-wheeled motorcycles. It also said a second coverage gap mattered because the model policy preserves coverage for substitute vehicles, while Progressive’s policy protected “additional” and “replacement” autos only when ownership or permanency applied, not substitute vehicles.
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