In Search of Standards for Totaled Auto Claims Software

Basit Mian sued Progressive County Mutual Insurance, J.D. Power & Company, and Mitchell International Company, Inc., in a Texas Federal District Court, charging that Progressive’s use of a computer program called Work Center Total Loss (WCTL) undervalued his totaled vehicle by $2,073.24.

Progressive is a licensed insurance company operating in Texas, while J.D. Power and Mitchell International are third-party vendors that sell claims settlement software programs to insurers and other parties.

J.D. Power, a Troy, Michigan, company founded by James David Power III in 1968, is currently owned by a private equity firm, Thoma Bravo, with offices in Chicago, San Francisco, and Miami. In addition to software programs, the company also owns the National Automobile Dealers Association Guide for Used Vehicles. This guide is widely used to value vehicles, is available to the public, and is a useful reference in valuing used vehicles.

Mitchell International is a San Diego, California, software company formed in 1947. Mitchell recently joined two other companies, Genex and Coventry, to form Enlyte, a parent brand name "committed to simplifying and optimizing property, casualty, and disability claims processes and services."

Neither J.D. Power nor Mitchell is a licensed insurer, adjuster, insurance producer, or third-party administrator.