She sought $25,000 after a crash but got a $710 offer. 4 years later, a jury found 'bad faith' to the tune of $40M
For months, she did everything that was required. Yet, the agents didn’t change the amount she was supposed to claim.
In 2022, a resident of Tulsa, Oklahoma, got her car hit in an accident. Regrettably for her, the driver was underinsured. Her last resort was to approach her insurance company and seek benefits, which she expected to be around $25,000. This never happened. She sought $25,000 in underinsured-motorist benefits, but Progressive initially offered $710. Years later, a federal jury found that the insurer had acted in bad faith and awarded her $20 million in compensatory damages and another $20 million in punitive damages, as Attorney Donald Smolen described to KFOR News 4 on September 1, 2026.
The $710 offer that led to court
Smolen took over the case in 2024 after another attorney referred it to him over concerns that Progressive was handling the claim in bad faith. According to Smolen, the company had undervalued the claim, delayed its investigation, and failed to properly consider information submitted by the woman. The woman continued to plead with the company to reimburse her benefits. For months, she submitted proper documentation and did everything that was required. Yet, the agents didn’t change the amount she was supposed to claim. On August 7, 2026, the federal jury returned a $40 million verdict — $20 million in compensatory damages and $20 million in punitive damages.
'It's frustrating!'
“It’s frustrating for Oklahomans that pay these premiums religiously every month and then have to go to federal court to get paid the benefits they’re owed,” reflected Smolen. He said she had not yet received the money and that Progressive was expected to appeal, while roughly $4,000 a day in interest continued to accrue.
More auto claims are closing without payment
"The industry uses claim lowballing and denials to wring extra profit out of customers who don't have the resources or, in some states, the rights to fight back," Consumer Federation of America insurance director Douglas Heller told The Wall Street Journal, per Yahoo News. According to The Journal, 45% of resolved auto liability and medical claims closed without payment in 2025, up from 35% a decade earlier. Collision and comprehensive claims were less likely to end that way, with just under 25% closing without payment. The report noted that an unpaid claim does not always mean an insurer wrongly denied it, since cases can close for reasons such as another insurer paying or damages falling below a deductible.
That's mafia insurance
Viewers strongly criticized the insurer and reacted to the size of the jury's verdict. @kristibrown1164 commented, “How stupid of an insurance company to go to a jury trial. After all, there isn't an American alive that hasn't been screwed over in some form or another by insurance companies.” @navy_ew1 said, “Fraud is when you take someone's money and promise to pay if something happens, and when that something happens, to not honor your promise. You or I would go to fucking jail if we did that.” @knife_collector reflected, “Not to worry... they will just raise everyone's rates to make up for it.”
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