Cronauer Files Class Action Lawsuit Concerning Gap Insurance

Local Sycamore attorney Nicholas Cronauer filed a class action lawsuit in Rockford Federal Court seeking damages in excess of five million dollars and injunctive relief on behalf of a DeKalb County resident and class action status for other potential similarly situated Illinois class members. The class members purchased “Gap” insurance coverage from two Progressive Insurance business entities from March 4, 2011 through present day.

Gap insurance is additional coverage that theoretically covers the difference between a car’s actual value and any higher amount owed on a consumer’s lease or loan term if a vehicle is rendered a total loss after a collision. The complaint alleges that two Progressive Insurance entities offered consumers Gap coverage that was not in compliance with the Illinois Department of Insurance regulations and was deceptive in its offering to consumers. The Plaintiff in the case purchased gap coverage from a Progressive Insurance Entity, and then after she was involved in an accident and her vehicle was rendered a complete loss, Progressive allegedly refused to pay off the Plaintiff’s full loan balance despite Plaintiff purchasing the additional insurance coverage. It’s alleged that Progressive refused to pay-off the Plaintiff loan’s balance by relying upon old insurance policies and declarations that were not actively filed with the Department of Insurance and had been superseded. The suit seeks class action status for all consumers in Illinois that purchased gap coverage from Progressive Direct and Progressive Universal Insurance Companies. Anyone who has purchased gap coverage from Progressive Insurance starting March 4, 2011 through present day call Cronauer Law at (815) 895-8585 to learn about their rights.