Court Revives Bad Faith Claim Against Progressive

A federal appeals court says Progressive American Insurance Company must face a jury over its handling of a Florida rear-end collision claim.

Updated on Nov. 6, 2026 in Insurance

Bold flat-color editorial illustration of a plain low courthouse facade with tall columns under a pale sky, with a few palm silhouettes at distance, in navy and cream. — A federal appeals court ruled 2-1 that Progressive American Insurance Company must face a jury over a Florida claim where a $10,000 policy was tied to a judgment exceeding $1,000,000. AI Illustration. Upload story photo >

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The Eleventh Circuit revived a bad faith claim against Progressive American Insurance Company, ruling 2-1 that the case should go to a jury. A jury had already awarded more than $1,000,000 against the insurer's policyholder, who carried only $10,000 in bodily injury coverage.

Why it matters

The ruling keeps open the possibility that an insurer may be held liable for an excess judgment when it mishandles a settlement offer, a risk that affects drivers and insurers across Florida. The case also turns on how Florida's total-loss statute applies when an insurer treats a low-value vehicle as a write-off.

The driver carried $10,000 in bodily injury and $10,000 in property damage coverage, while the injured motorist's attorney offered to settle for $10,000 for injuries and $5,000 for a 1991 Mercedes purchased for $3,000. The jury awarded $790,000 in damages, $388,505 in attorney fees and $76,000 in costs.

The players

Progressive American Insurance Company

Progressive is a major American auto insurer known for its nonstandard auto coverage and its use of online quoting and claims tools.

Eleventh Circuit

The U.S. Court of Appeals for the Eleventh Circuit is the federal appeals court with jurisdiction over Florida, Georgia and Alabama.

The details

Progressive agreed to the settlement amounts but required the injured motorist's wife to sign a release waiving her right to sue, naming his ex-wife on the document instead. The insurer also required the motorist to hand over his car title, and it searched the internet and a database to identify the name placed on the release without calling the wife directly.

September 2016: A driver rear-ended another motorist in Florida.
November 5, 2026: The Eleventh Circuit ruled Progressive must face a jury.

Market Dynamics

The case reflects a longer legal pattern in which Florida courts weigh insurer bad faith exposure under the state's total-loss framework. The Eleventh Circuit's 2-1 vote signals that the question of how far an insurer's settlement conduct can extend liability remains actively contested.

Drivers carrying minimum bodily injury limits may face personal exposure if an insurer's handling of a claim later exposes it to an excess judgment. Florida policyholders should review their liability limits and understand how their insurer will handle settlement demands.

The takeaway

Policyholders with low coverage limits should understand that a settlement demand above those limits can lead to disputes over how their insurer responded. Reviewing settlement conduct and release terms can help protect against unexpected personal liability.