A federal jury in Oklahoma recently ordered Progressive to pay $40 million to one policyholder. Her original request was for $25,000 in underinsured motorist benefits. The verdict focused on how the insurer handled her claim while it stayed open. That makes the case relevant to anyone dealing with an auto insurance claim delay at a body shop right now.
Her case involved an injury, and yours may involve a crushed quarter panel. Still, the tactics a jury examined in that courtroom will look familiar to anyone who has waited on a supplement approval. This article explains what the court found, where the same patterns show up in collision repair, and what you can do about them.
Eric Reamer breaks down the case in the latest episode of The Airing of GRIEVEances from Nylund’s Collision Center. Watch the episode first, then use this article as your deeper reference.
What Happened in the Progressive Bad Faith Verdict
In August 2022, Mary Paulding of Tulsa filed a claim with her own insurer. She had paid for underinsured motorist coverage for exactly this situation. If an at-fault driver lacked enough insurance, her carrier would make up the difference. According to her attorney, Progressive responded with an offer of $710.
Progressive also said it needed more information before paying. The list included additional medical records and a wage verification form with a doctor’s note. The company also wanted written proof that the other driver’s insurer had paid its policy limits.
Several of those requests carried little weight at trial. Progressive already had the medical records. The wage information wasn’t necessary to make an offer. In addition, the company had known for some time that the other carrier had paid its limit.
Timing mattered most. Progressive’s adjuster completed the evaluation one day after Paulding received written confirmation of that payout. Magistrate Judge Christine Little denied Progressive’s motion for summary judgment, and the case went to a jury. Jurors awarded $20 million in compensatory damages and another $20 million in punitive damages.
The Profit Share Detail
Paulding’s attorneys stated that trial evidence showed Progressive’s adjusters had incentives, through a company-wide profit share program, to reduce loss payouts and claim costs. That is the plaintiff’s description of the evidence. Progressive has filed post-trial motions challenging the verdict. Even so, the detail deserves attention. Most adjusters work hard inside systems they didn’t design. However, when a bonus structure rewards lower payouts, slow approvals and extra paperwork become predictable results. Nobody needs a conspiracy for that to happen. The incentive does the work on its own.
The Duty of Good Faith and Fair Dealing Covers Your Car, Too
Every insurance policy is a contract. Courts across the country read an implied duty of good faith and fair dealing into that contract, whether or not the policy spells it out.
That duty requires your insurer to handle your claim fairly, honestly, and with reasonable speed. It applies to a broken leg and a bent fender alike. When an insurer breaches the duty, the policyholder may sue in tort. In states that allow it, a jury can also award punitive damages on top of the benefits owed. Not every state permits punitive damages in bad faith cases, but Oklahoma does.
How Colorado Law Treats an Auto Insurance Claim Delay
Colorado offers drivers strong protection. Under C.R.S. § 10-3-1115, an insurer may not unreasonably delay or deny payment of a covered benefit to a first-party claimant. A first-party claimant is you, making a claim on your own policy.
Section 10-3-1116 then gives that claimant a path to recover two times the covered benefit. The claimant can also recover reasonable attorney fees and court costs. Whether your situation qualifies depends on the facts, so an attorney should make that call. Still, Colorado drivers facing an auto insurance claim delay without a reasonable basis have real statutory options.
Where an Auto Insurance Claim Delay Shows Up in Collision Repair
Most drivers will never sit through a bad faith trial. Instead, they feel the effects at the repair shop. These three situations come up most often.
Supplements that stall. Initial estimates rarely capture all the damage. Once technicians take a vehicle apart, they often find broken brackets, damaged sensors, or structural issues behind the bumper. The shop then sends the insurer a supplement for the added repairs. An insurance supplement delay happens when that request sits for days or weeks. The shop calls, then calls again, and the adjuster says the file is still under review. Meanwhile, your car sits in the bay.
Document requests that keep coming. Sometimes the insurer asks for one more photo. After that comes a new form, and later a teardown report. Each request may sound reasonable on its own. Together, though, they can add weeks to a repair. The Paulding case centered on this exact pattern.
Rental coverage that runs out first. Rental reimbursement usually carries a daily limit and an overall cap. A stalled claim doesn’t pause that clock. As a result, many drivers lose their rental before the car is ready, and they absorb the cost of a delay they didn’t cause.
Why Your Policy Language Matters More Than the Adjuster’s Opinion
Your coverage comes from the written policy you signed and paid for. That document, and the law behind it, shapes almost every parts decision on a collision claim. Unfortunately, very few drivers read the parts section before they buy.
Like Kind and Quality Parts vs. an OEM Parts Endorsement
Most auto policies promise like kind and quality parts. That wording legally allows aftermarket, recycled, or salvage parts in place of original equipment manufacturer (OEM) parts.
The main exception is an OEM parts endorsement. Many carriers offer one for a modest added premium. Without it, you generally have no contractual right to new OEM parts, even after years of on-time payments.
So when a shop says your insurer will only pay for non-OEM parts, the shop is usually describing your own policy. Many vehicle manufacturers publish position statements calling for OEM parts in certain repairs. Your policy may still allow alternatives. The best time to close that gap is before a claim, while you can still change your coverage.
Now add a cost-reduction incentive to the picture. Suppose an adjuster’s pay rewards lower claim costs, and the policy already permits cheaper parts. The default outcome is easy to predict.
Why the Parts Conversation Rarely Happens
Adjusters rarely walk policyholders through parts decisions over the phone. When anyone explains them, it is usually the body shop.
However, some shops belong to a direct repair program, or DRP, with a specific insurer. That relationship sends them steady referrals. Pushing hard on a parts conflict can put those referrals at risk, so the conversation sometimes never happens. Understanding the incentives on both sides of the counter helps you ask better questions.
Six Ways to Protect Yourself During an Auto Insurance Claim Delay
Most claims don’t require a lawyer. They do reward organization and a few consistent habits. These steps give you leverage without turning every phone call into an argument.
Steps You Can Take Today
1. Put every conversation in writing. Phone calls fade from memory and are hard to prove later. After any call with an adjuster, send a short email restating what you discussed. A simple opening works: “Just confirming what we discussed today.” That habit builds the kind of paper trail that carried the Paulding case.
2. Keep a dated timeline. Record the date you submitted each document and the date each response arrived. Include calls, emails, and updates from the shop. The Oklahoma verdict leaned heavily on timing. Your own timeline could matter just as much.
3. Ask why each new document is necessary. When the insurer requests something new, ask which policy provision or regulation requires it. Ask in writing. Most of the time, you will get a sensible answer. When you don’t, your question becomes part of the record.
When an Auto Insurance Claim Delay Needs Outside Help
4. File a complaint with your state regulator. Every state has an insurance regulator that accepts consumer complaints. In Colorado, you can file a complaint with the Colorado Division of Insurance through its secure online consumer portal. Filing costs nothing. It also creates an official record outside the insurer’s own files.
5. Learn what your appraisal clause allows. Many auto policies include an appraisal clause. If you and the insurer disagree about the value of a loss or the cost of repair, either side can invoke it. Each side then chooses an independent appraiser, and a neutral umpire settles any remaining difference. Read your own policy carefully, though. At least one major Colorado insurer limits appraisal to total loss claims.
6. Talk to an insurance attorney when the stakes are real. Some delays are ordinary, and some are not. If a meaningful amount of money is at stake and the delay feels deliberate, consult an attorney who handles insurance claims. An outside professional can tell you which kind of delay you’re facing.
What Normal Claim Handling Looks Like
None of this means every adjuster acts in bad faith. Most claims move at a reasonable pace, and most adjusters carry heavy caseloads honestly.
A healthy claim usually shows a few clear signs. The insurer responds to supplements promptly. It explains document requests in plain terms. It also answers your questions in writing when you ask. If your claim looks like that, you’re likely in good hands.
The Bottom Line on an Auto Insurance Claim Delay
A $40 million verdict makes headlines. The more useful lesson is what the case revealed once an insurer had to show its work in court. You can read the full report on the Progressive verdict from Repairer Driven News for more detail.
You have every right to ask questions, keep records, and expect fair treatment from the company you pay each month. Most of the time, your insurer will meet that standard. If you ever face an auto insurance claim delay that feels deliberate, you now know how to recognize it and how to respond.