This is just criminal. Insurance companies, especially ones as large as progressive, are terrible with stuff like this. Horror stories like this are all abound.
Take their asses to court, judges hate these insurance moguls because they are constantly trying to get over on the consumer.
This is why I have state farm. They have always gone above and beyond for me, they never even ask questions when I call them, they just say "I'm so sorry sir, we will take care of everything", and then they do.
I say take em to court and sue for emotional damages for the stress induced by them refusing to pay for the car. Your car was just ruined, the last thing you need is your insurance company dumping you.
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