Progressive Caves to Social Media Backlash

I may not agree with Peter Lewis' politics, but the man really capitalized on the opportunity in the late 80s and found a niche and expanded it. I didnt think he wud let something like this fester.
 
Cases that go high profile put pressure on the insurance companies to pay in order to avoid bad publicity and lose policyholders.

In this case, progressive mishandled the claim but they were put in a tough situation. On one hand, they had the duty to defend their insured. There was one witness that said she had the green light while the other driver, her own passenger, and the police report says she ran the red light.
 
skanair said:
Cases that go high profile put pressure on the insurance companies to pay in order to avoid bad publicity and lose policyholders.

In this case, progressive mishandled the claim but they were put in a tough situation. On one hand, they had the duty to defend their insured. There was one witness that said she had the green light while the other driver, her own passenger, and the police report says she ran the red light.

But they did not defend their insured. They provided defense for the at fault party against the interest of their insured because the insured was trying to use the underinsured portion of their coverage.
 
Why do I think the guys story leaves out some huge parts? I feel for him, I understand his anger, but I'm assuming there is more to this story.

The bottom line is if you need life insurance, get a life insurance policy, or at least an accidental death policy. UM coverage isn't really a life policy.

Dan
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But they did not defend their insured. They provided defense for the at fault party against the interest of their insured because the insured was trying to use the underinsured portion of their coverage.

But do you know he wasn't insured by Progressive as well? If he was, then they may have had to.

Dan
 
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djs said:
Why do I think the guys story leaves out some huge parts? I feel for him, I understand his anger, but I'm assuming there is more to this story.

The bottom line is if you need life insurance, get a life insurance policy, or at least an accidental death policy. UM coverage isn't really a life policy.

Dan
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But do you know he wasn't insured by Progressive as well? If he was, then they may have had to.

Dan

I know nothing about the story other than his post. I understand if he was cover by Progressive they would have to defend him. I also agree with the life insurance component.

I understand why carriers cave in the spotlight like this they look at what the claim will cost vs additional revenues lost because of PR......I think though by caving they end up giving the industry a bad image anyway.....The average consumer sees they paid the claim in the spotlight of public opion when they had been stalling or denying it before and they think the carrier acted in bad faith even though they may have had every reason not to pay.
 
A very sad case. A very greedy, insurance company. All they were asking for is the insurance limit she paid for.
 
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