Progressive Tries “Concierge” Program; Loses Case Filed by Glass Service Co.
Progressive Insurance, which is based in Mayfield Village, Ohio, has implemented a new collision service called the “Concierge” program. Under the terms of this program, if a Progressive policyholder needs collision damage repaired, he can take his car to the nearest Progressive location and obtain a rental car until his car is repaired. Then, Progressive will estimate the damage and take the car to a shop agreeing to do the work for the insurer’s set price. The shop must then pick up the car from Progressive and must return it once it is restored to pre-loss condition. However, the shop must agree that during the time it is working on the vehicle, it is only to have contact with Progressive—not with the policyholder. In addition, before completing any work, Progressive requires a contract be signed indemnifying Progressive and all other parties from any legal action relating to the repair, providing the shop with a great liability in the event of a customer complaint.
Progressive is testing the program in Bedford, Ohio, Orlando, Fla., Philadelphia, Pa., and Richmond, Va., currently.
In other news at Progressive, Minneapolis-based Glass Service Co. recently prevailed over the insurance company in a case about short payments incurred since April 1997. Glass Service Co. won $14,974.59, plus costs and disbursements. According to the court ruling, “Glass Service established that its prices are within a reasonable range given the quality of materials it uses and the caliber of its installers.” It continues, “Progressive breached its contract with its insureds by failing to pay all reasonable costs to repair or replace the property with other property of like kind and quality.”
Erie Begins Writing in Wisconsin
Erie Insurance Group, which is based in Erie, Pa., has begun writing insurance policies in the state of Wisconsin. The company has opened a branch office there in Waukesha, in addition to 30 independent agencies throughout the state. The company now offers business in 11 states—including Wisconsin—and Washington, D.C.
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