Does Progressive pay diminished value? If a Progressive driver caused your crash, you can usually ask Progressive to cover the drop in your car's value, depending on your state's rules. If you're claiming on your own Progressive policy, it's harder, and the answer depends on where you live. Diminished value is the loss in what your car would sell for after an accident, even when the repairs turn out fine.
When a Progressive Driver Is at Fault
If a Progressive customer hits you, your claim is a third-party claim. In other words, you go after the other driver's insurance company rather than your own. A research report for the Connecticut General Assembly concluded that most courts permit third-party diminished value claims.
The claims FAQ from Progressive explains that whoever is at fault, or that person's insurer, covers the damages and losses, and that fault is set by state law. Diminished value never comes up by name in the FAQ. It also notes that Progressive cannot guarantee it will get your deductible back.
Pennsylvania has its own twist. The Holovich court pointed out that the state does not allow suing the at-fault driver's insurer directly. Anyone bringing a suit there sues the driver instead.
Your Own Progressive Policy
Two courts have weighed in on this and reached opposite outcomes. In Florida, the Siegle decision of May 23, 2002 said a collision policy does not have to pay for lost value after a good repair.
In Pennsylvania, Progressive argued in Holovich that diminished value did not exist, but on April 28, 2022 the court let the claim on the driver's own policy go forward. That decision only kept the case alive; it was not a final victory.
Georgia took yet another path. In Mabry, the Georgia Supreme Court ruled that State Farm had to evaluate diminished value alongside the physical damage. After that, the Georgia commissioner directed every carrier to look for diminished value, as Liberty Mutual's notice explains.
Making a Progressive Diminished Value Claim
Because Progressive's FAQ lays out no lost value process, the usual way to ask is this.
- Let the adjuster handling your open claim know you want diminished value.
- Send a written demand that includes the repair estimate and final bill, photos of the damage, a vehicle history report, plus an appraisal. Ask for a written reply within 30 days.
- If things go nowhere, file a complaint with your state's insurance department.
If you want help, you can call us or send a claim review request to an appraiser or car claim attorney, who will reply by email.
How Big Could the Loss Be?
A method known as 17c is used by many insurers, as J.D. Power describes. It begins with 10% of what the car was worth before the crash, then trims that amount based on how severe the damage was and the mileage.
Market ranges run higher than 17c and grow with how bad the damage is.
Say a car worth $25,000 has 30,000 miles and some damage to the frame and several panels: the market range comes to $1,250 to $3,000, while 17c gives $1,000. Once mileage hits 100,000 or more, the 17c number drops to $0, but the market range does not change.
If Progressive's first offer looks low, these two figures give you a fair starting point to push back. Our calculator works them out for your car in three quick questions, and our demand letter tool can turn them into a letter you can send.