Progressive Insurance not liable for vehicle title "mistake"
Progressive Insurance totalled one of its insured's vehicles, but then sold it with a clear title instead of a salvage title. A purchaser bought the vehicle after it was repaired, but Progressive refused to insure it because of the title "error." (How's that for irony?) The auction house, Pro-Tech, bought the vehicle back and a dispute developed between it and the dealer over the quality of the dealer's repairs. When the dealer refused to contribute to the buy-back, it was banned from Pro-Tech auctions, and the dealer eventually sued the auction house and Progressive. The Court of Appeals held that Progressive's titling "error" was too remote to make it responsible for the controversy that developed between the auction house and the repairing dealer. If an insured made a similar "mistake" in his or her purchase documents, their insurance would be voided for fraud. The term "progressive" has certainly assumed a different meaning over the past few decades.