UPDATE: Progressive Insurance tweeted Aug 16, 2012 that a settlement
with the Fishers had been reached. Here is a screen capture of that tweet:
Since August 13, 2012, when Matt Fisher wrote about this family’s miserable experience with Progressive Insurance in his tumblr there has been an avalanche of negativity launched towards Progressive.
His tumbler post titled “My Sister Paid Progressive Insurance to Defend Her Killer in Court”generated blog posts, tweets, Facebook and Google Plus shares and multiple threads on Reddit.
Progressive’s response has simply dug the hole deeper and deeper as I documented in the whole Progressive Insurance Fisher Story.
Progressive’s position is basically that they met the letter of the law and they obviously do not feel any need to actually do what is right or to care what their customers think.
While some report that they “settled” with the Fisher family, as I edit this post on Aug 25, 2012 they have NOT seen one thin dime. Read on to see why they may not get what the judge ordered.
See Matt Fisher Video About Progressive Insurance persuasively
explaining what happened and why he tweeted
“My Sister Paid Progressive Insurance to Defend Her Killer In Court“
in GrowMap’s post Progressive Insurance Reform
Matt Fisher’s sister, Katie, was killed in an auto accident in 2012 by a driver who ran a red light according to witnesses. Because Katie’s killer was underinsured, Katie’s policy with Progressive should have paid out the difference between the at fault driver’s insurance of $25,000 and the $100,000 Katie carried.
Progressive clearly owed the Fisher family $75,000.
Progressive chose to take the position that KATIE was at fault in the accident in spite of the evidence and the other driver’s insurance company paying – something they clearly would NOT have done if their customer was not at fault.
Because Maryland law does not allow policy holders to sure their insurance companies for breach of contract, Katie’s family had to prove Katie was not at fault by establishing that the other driver caused the accident.
Redditors were outraged – see the comments about Progressive Insurance on Reddit
surrounding SF Chronicle’s Progressive Insurance on Defense After Court Case
Because getting a jury ruling to prove the other driver was at fault was the only way to force Progressive to pay what they clearly owed, the Fisher family reluctantly took the other driver to court.
They never dreamed that Progressive would sent their legal team to defend the driver that killed Katie in order to avoid paying the Fisher family the $75,000 they clearly owed.
Graph by Alerti
~Discussions around Progressive were 51.33 percent negative
in the week since Matt Fisher’s post ~
The jury ruled in favor of the Fisher family – the other driver was determined to be negligent – and the judge ordered Progressive to pay.
Progressive actually made the bad publicity worse by claiming they did NOT defend Katie’s killer in court when they most certainly did. What lawyers consider acceptable has little to do with what it right and almost any strategy that can result in a win is acceptable – even lying.
After Progressive made a rebuttal that they were not representing the defendant,
followers of the case did some fact checking and determined their claim to be untrue.
Image courtesy of theblaze.com
This is likely to be the number one most often cited example of what not to do when your business is in the midst of a PR crisis, as well as the power of social media publicity.
With any luck this outpouring of disgust at their behavior will cost Progressive dearly for many years and possibly even get them to reconsider their unethical ways. But that is doubtful so I wouldn’t count on it.
The reason people act the way they do is because they truly
believe they are right. That is unlikely to change regardless
of how many object or tell them why they’re not.
Graph by Alerti
Even with dozens of articles posted about the scandal, Twitter ruled
the online conversation with 99.33 percent of mentions.
Progressive will pay the cost of the court of public opinion but it is unlikely
they will connect the dots and realize THIS case is responsible for a
reduction in earnings over many years as current policy-holders
cancel and others avoid switching to Progressive when
comparing insurance companies and rates.
Over 1,000 Twitter users claim to have dropped Progressive as their insurance carrier in a four-day span last week. 1,600 more Twitter users indicated they would avoid using Progressive according to Marketwatch.com.
Progressive created and perpetuated this PR catastrophe by their single-minded pursuit to save $75,000 instead of doing the right thing. Even if they routinely refuse to pay – which I have no doubt IS true – once they realized how large an outcry this case was generating even they should have decided they could not get away it – this time.
Anyone else curious how many blog posts were written about Progressive
since Matt’s Tumbler? Tell me in the comments and I will research –
I can find out using GroupHigh’s Blog Outreach Management Tool
Businesses concerned that social media users might rise up against them – and that CAN happen whether you are honest and upstanding or greedy and selfish – can use monitoring sites such as Alerti to track conversations involving your company.
By monitoring and immediately responding to complaints posted online about your business, you can head off and handle situations BEFORE they escalates to the level seen in the Progressive scandal.
Video Highlights:
- Social Media Monitoring
- Salvaging a PR catastrophe
- Progressive Case Study
Progressive Insurance Reform
- Seth Godin: Corporations are NOT People
- Gawker: Comedian Calls Out Insurance Company
- CBS News: Internet Outrage Against Progressive Grows
- Consumer Affairs Progressive Insurance Rating
Progressive Insurance Social Media Accounts
- Progressive Insurance Google Plus Page ~ No word from “Flo” between Aug 10 and Aug 26, 2012
- Progressive Insurance Facebook Fan Page ~ Nothing on Facebook from “Flo” between Aug 14 and Aug 26, 2012
- Progressive Insurance Twitter Account
{ 23 comments… read them below or add one }
This is a well detailed information about insurance. Customer satisfaction is one key to building a long lasting business.
Hi
It i s good to sea an insurer get a bit of come uppance constantly they raise premiums and sneek out of paying out when needed and maybe a few more scenarios recorded and published like this one and they will eventually realise that customer satisfaction is what is going to keep them from going out of business I,n the long run.
Great post thanks lee
Lee would love you to read ..New customer discount on insurance
It was always known that insurance companies collect premium by promising several benefits like safeguarding policy holders from many evils. However, when it comes to delivering they start dillydallying and do all types of things to stop policy holders from claiming rightful compensation like what Progressive did, which was a very shameful act. This post only proves that long known fact. But the good thing is that now with the power of internet on consumer’s side these fraudulent insurers will now be on the receiving end as acknowledged in this post that several of its potential buyers avoided buying cover from them.
Betty Diaz would love you to read ..law firm personal injury toronto
Twitter: GrowMap
December 20, 2012 at 7:00 am
Hi Betty,
That is the business model of all major insurance companies: take your money with no intention of paying out when you have a claim. I had a really great insurance agent back when I bought liability coverage (required by law) from his independent insurance agency.
He got sacked by two different companies during the time I used him because he fought for his customers to make the insurance companies pay up. Both times the companies sent me to one of their other agents and both times I went back to him and said write me wherever you are now and cancel them.
If I needed insurance today, I would get it from him because he fights for his customers. I choose not to drive any more partly because it irks me so much to have to pay $50-$60 per month for insurance that does not cover me or my vehicle. That is extortion.
Those who have the resources and so desire can choose to buy uninsured motorist coverage. Mandating that the poor who can not afford it and the free who choose not to support insurance companies pay for what only enriches the insurance company is just plain wrong.
Many have fallen for this nonsense that others owe them coverage. They’re wrong. You can’t make life “safe” with insurance and taking from those who can least afford it so you can afford more toys is immoral.
Uninsured motorist coverage means the insurance company has used the government to force you to buy “protection” so they get paid TWICE (once for mandatory liability and once for uninsured motorist coverage) for the same accident – and then they will do their best to STILL not pay what they owe the insured.
GrowMap would love you to read ..How to Find Those Elusive Jobs or Change Careers
Hey,
I think these companies are working for just their benefit.They are unaware of the power of internet.Your content is really incredible.You have shared a good information about insurance.
Thanks,
Joel
Twitter: Ezvid
September 15, 2012 at 2:44 pm
well this is a moment of really a big morn !
Big companies and Insurance companies can take the amount from whole world and they don’t have any obligation ?
Don’t you think it is wrong ?
Thank you
Alex would love you to read ..Free Nightmare House 2 Screen Recorder
Twitter: JGDCD
September 12, 2012 at 10:59 am
Can’t even believe I’m reading this. Progressive should be ashamed of themselves. I was insured with them years ago. Never again…
Jennifer G would love you to read ..Amanda Bynes in Trouble with Police Yet Again
thank you for your very useful article indeed true with a new, expanded knowledge fuss
Bradunson would love you to read ..Nine steps obstacles you to become a famous
Twitter: davidsneen
August 27, 2012 at 4:36 pm
What an indictment on our system! Insurance companies collect and then go out of there way to avoid paying. This is unconscionable. Thank you for bringing it to our attention. It would be great if we could do some major reform. The cynic says this post will do its job if it keeps one customer away from Progressive.
David Sneen would love you to read ..Prequel to the Earn More Spend More Group
Twitter: GrowMap
August 28, 2012 at 2:35 am
Hi David,
I had an insurance agent who three different times was fired by big insurance companies for insisting they pay out what they owed. They apparently did not like agents who actually cared about protecting their customers.
Each time I got a renewal that had a different agent on it I went back to his office and had him switch me to whatever company he was still recommending that had the policies I needed. THAT is the largest indictment that shows it is common practice in that industry.
I consider insurance evil because it only exists because we are so collectively selfish and self-centered that we now must buy what was once given freely – and in some communties still is.
The Mennonite Disaster Service is still helping people affected by Katrina and many other disasters rebuilt. THAT is what we ALL should be doing. Instead of buying insurance we should donate 10% to those who do good works and when tragedy strikes those we support will be in a position to help us as well.
Any of us can volunteer or donate money for supplies and building materials by going to the Mennonite Disaster Services Web site where they share what they are doing – when and where. I am sure there are other worthy organizations besides theirs doing the same thing.
That said, if a corporation sells insurance they need to do what is right instead of caring more about their profits than paying those who bought from them in good faith. (Obviously misplaced good faith.)
This is also an indictment of our legal system and contracts which are both used more often to avoid responsibility and prevent justice than to obtain it.
GrowMap would love you to read ..Why Your Geographic Location is Your BEST Niche
This just makes me sick to my stomach. It’s incredibly sad to think that *this* is what the world has come to, profiteering and “doing the bare minimum”. I love the fact, though, that social media can be leveraged to get the “small guy” heard.
Jake would love you to read ..SEOmoz MozCon 2012 Recap
Incredibly refreshing content. I did not expect anyone to write such a well detailed report about insurance reform. Thanks:)
Joanna would love you to read ..Is Hitachi Magic Wand The Most Powerful Vibrator?
Well, there are all sorts of people that make up this world. A few bitter experiences make us distrust all insurance companies. We forget that WE were the ones who chose to stick to those people previously and if we have a bad service provider, we have no one else but ourselves to blame.
Ambika Choudhary Mahajan would love you to read ..Swine Flu 2012 Threat Due to H3N2 Virus
Twitter: DAMGFLORIDA
August 23, 2012 at 12:16 pm
On a related note, my sister was hit by a car and almost killed back in 1988. The lady driving the car blew a red light and we have reason to believe that she was drunk because it was on May 5th. The car was owned by the catholic church. The insurance company fought tooth and nail for 7 years. My sister finally did get a settlement. The point is I think and I would hope that the catholic church just wanted to compensate her, but the insurance company was scummy.
Peter Charles would love you to read ..Woman Kills Pedestrian as a Result of Drinking and Driving
Many insurance companies do the same thing (not to the same extent though). When they have to pay up the companies try to find whatever reason not to.
All these companies should be pointed out and their associated brand must suffer!
Julius from RoundNews would love you to read ..Naked photos of Prince Harry leaked
I guess Progressive is unaware of the power of internet and the will power of Fisher family and underestimated them both.The name is Progressive but they are not on the path of Progress.They get what they deserved.
Aditya would love you to read ..ERP Software Companies
Twitter: AAAccidentAttorneys
August 23, 2012 at 7:11 am
I think you are exactly right about this. Even today some of the bigger companies out there are not getting a firm grasp on what kind of power the internet community can muster up. Things like this will get those companies to take notice, however. Once some of the major brands see that handling things poorly online can cost them dollars, they will shape up and start to get a little more savvy with their online persona.
Twitter: GrowMap
August 25, 2012 at 3:17 pm
I don’t believe they will really understand the impact this may have on their bottom line because they are so big and there is so much churn in the insurance industry anyway.
Their AGENTS may notice though. In a rural county I once lived in just about all the ranchers used Southern Farm Bureau. When they refused to pay a claim and cancelled the policy of a local young man unfairly, everyone who knew him switched companies. So many people changed that SFB actually contacted them to find out why.
So we collectively CAN change these corporations – but only if more people actually start caring about someone besides themselves. Of course if that became commonplace insurance companies would be obsolete.
Insurance is a bad solution to selfishness. If we cared about each other no one would need insurance because people would rally around those who had a loss and rebuild for them in the way that Mennonite Disaster Recovery efforts still do. They are not nearly as close to each other as I would have thought, but when it comes to the big things like that they still get it right.
GrowMap would love you to read ..Why Your Geographic Location is Your BEST Niche
Twitter: http://www.twitter.com/indiadarshan
August 22, 2012 at 1:08 am
If we will do each and every thing according to our requirement then it will prove good for us and for our work as well because when we will understand our limits then i don’t think so any other thing will effect our life style and art of work.
Sam would love you to read ..Goa Holiday Packages
Twitter: ConnieFoggles
August 21, 2012 at 8:44 pm
I also heard that Progressive Tweeted about this terrible incident, then deleted the Tweet. I can’t believe that a large company thinks they can lie and not be found out by simple internet search. Good for Matt for taking this issue to the internet.
ConnieFoggles would love you to read ..The Daughter I Advocate For | Portrait Post #A4Amonth
Twitter: GrowMap
August 22, 2012 at 1:07 am
Hi Connie,
They had to because in the usual corporate legal speak all they kept saying was “We properly handled the claim within our contractual obligations.”
To those with no moral compass who worship the almighty dollar doing the right thing never even crosses their mind. They can and will do whatever they can get away with – as can clearly be heard if you listen to the video I put in my post on Social Implications.
I put both the tweet and their last comment in that post. Here’s what I wrote >>
They STILL have no intention of paying out what they owe!
Gail Gardner would love you to read ..Blogs Worth Reading; GrowMap Posts on Other Blogs
Twitter: DAMGFLORIDA
August 21, 2012 at 7:18 pm
Since I currently write about accident cases all the time I feel I really need to say something about this. I think progressive got what they deserved. Insurance companies in this country and not just auto insurance companies make way to much money and are constantly trying to screw over their clients. I think Progressive got what they deserved. My site is full of accident lawyers nationwide that will fight for anyone in this situation and will only get paid if you collect damages.
Peter Charles would love you to read ..Progressive Insurance Attacked by Family of Deceased Policy Holder
Accident lawyers fight for the little guy, not the huge insurance companies. When you deal with companies like this on a daily basis, you start to realize Flo is a far cry from the reality of insurance representatives.