If you’ve ever totaled your car in a wreck and felt like your insurance company gave you the short end of the stick on your vehicle’s value, you’re not alone. A recent federal court case out of Indiana—Schroeder v. Progressive (July 2025)—has put the spotlight on how insurance companies like Progressive might be shaving down your claim using questionable valuation tactics.
What Was the Case About?
Heather Schroeder and Misty Tanner, two Indiana drivers, both had cars declared total losses after crashes. Their insurer, Progressive, used a pricing tool that knocked down the value of their cars by applying something called “Projected Sold Adjustments”—a formula that assumes cars usually sell for less than their list price. By doing that, Progressive offered settlements that were hundreds of dollars lower than what the policyholders believed their cars were worth. They filed a lawsuit, accusing Progressive of breaching the insurance contract and acting in bad faith.
So Did They Win?
Not exactly. The district court originally allowed them to represent a class of other Indiana policyholders who had their claims reduced using the same formula. But Progressive appealed, and the Seventh Circuit Court of Appeals reversed that decision.
The appeals court said:
“Progressive’s policy doesn’t forbid the use of these adjustments. As long as they pay you what your car is actually worth under the law, their method—even if flawed—is not automatically illegal.” In other words, the court ruled that you can’t sue just because you don’t like how they calculated the value. You must prove that you were actually underpaid based on your car’s real market value.
Why This Matters for Southern Indiana Drivers
If you live in Southern Indiana and feel like your insurance company lowballed your total-loss claim, this case matters—but it doesn’t shut the door on your rights.
The ruling doesn’t say insurers can do whatever they want—only that you have to prove:
- The insurer paid you less than the actual market value of your car
- And they did so knowingly or unfairly, in bad faith
So, if your claim was handled carelessly, delayed, or manipulated to reduce payment—and you have evidence of that—you might still have a viable lawsuit for bad faith.
What Should You Do If You Think You’ve Been Cheated?
1. Get a second opinion on your car’s value—NADA, Kelley Blue Book, and local dealerships can help.
2. Keep records of all communications and valuation reports from the insurance company.
3. Talk to a lawyer who understands Indiana insurance law and how to fight back when insurers use shady tactics.
Need Help in Southern Indiana?
I help folks in Southern Indiana and Louisville, Kentucky fight back when insurance companies don’t play fair. If you think your insurance company undervalued your totaled car or acted in bad faith, reach out. You might still have a case.