Progressive Lawsuit, They Owes You Money, $1.76M Stacked Coverage Settlement Deadline Jan 12, 2026

Progressive has agreed to pay $1.765 million to New Mexico policyholders who were charged unfair premiums for stacked uninsured/underinsured motorist (UM/UIM) coverage on single-vehicle policies. If you had a Progressive policy in New Mexico with stacked UM/UIM coverage on just one vehicle between January 1, 2009, and April 30, 2025, you may receive up to 100% of the premium difference you overpaid. Some payments are automatic, while others require filing a claim by January 12, 2026.

This settlement resolves allegations in Peck v. Progressive Northern Insurance Company (Case No. D-202-CV-2023-00816) in New Mexico’s Second Judicial District Court. Here’s everything you need to know to claim your refund.

What Is the Progressive Stacked UM/UIM Coverage Settlement About?

The lawsuit claims Progressive charged New Mexico customers higher premiums for “stacked” UM/UIM coverage on single-vehicle policies even though stacking provides no additional benefit when you only insure one vehicle.

What is stacked UM/UIM coverage? Stacked coverage allows you to combine (or “stack”) the uninsured/underinsured motorist coverage limits from multiple vehicles on your policy. For example, if you have two cars each with $25,000 in UM coverage, stacking gives you $50,000 in total coverage.

The problem: When you only have one vehicle on your policy, there’s nothing to stack. You’re paying extra for a feature that provides zero additional protection.

The lawsuit alleges Progressive knew this but continued charging higher premiums for stacked coverage on single-vehicle policies, violating New Mexico law.

Progressive denies any wrongdoing but agreed to settle to avoid continued litigation costs and uncertainty. As part of the settlement, Progressive has agreed to stop selling stacked UM/UIM coverage on single-vehicle policies in New Mexico.

Who Qualifies for the Progressive Settlement?

You may be eligible if you meet these requirements:

• You lived in New Mexico
• You had a Progressive insurance policy that included stacked UM/UIM coverage
• Your policy covered only a single vehicle (car, motorcycle, or RV) at the time
• You purchased or paid premiums for this coverage between January 1, 2009, and April 30, 2025

Covered Progressive companies include: Progressive Northern Insurance Company, Progressive Advanced Insurance Company, Progressive Casualty Insurance Company, Progressive Classic Insurance Company, Progressive Commercial Casualty Company, Progressive Direct Insurance Company, Progressive Max Insurance Company, Progressive Northwestern Insurance Company, Progressive Preferred Insurance Company, Progressive Specialty Insurance Company, Progressive West Insurance Company (now Drive Insurance Company), National Continental Insurance Company, and United Financial Casualty Company.

Who is NOT eligible: Progressive employees, judges involved in the case, anyone who files a separate lawsuit against Progressive for these same claims, or anyone who opts out of the settlement.

Two Groups: Automatic Payments vs. Claims Required

Class members are divided into two groups based on when they had stacked coverage on a single vehicle:

Group 1: Automatic Payments (May 10, 2018 – April 30, 2025)

If you purchased or paid for stacked UM/UIM coverage on a single vehicle during this period, you’ll receive an automatic payment without filing a claim.

Payment amount: 100% of the difference between what you paid for stacked coverage and what you would have paid for unstacked coverage.

Payments of $10 or more: You’ll automatically receive a check by mail unless you choose a different payment method (PayPal, Venmo, Zelle, or EpiqPay) on the settlement website within 90 days of the notice date.

Payments under $10: You must go to the settlement website within 90 days of receiving your notice and select how you want to receive payment. If you don’t select a payment method, you forfeit your payment.

Group 2: Claims Required (January 1, 2009 – May 9, 2018)

If you purchased or paid for stacked UM/UIM coverage on a single vehicle during this earlier period, you must submit a claim form by January 12, 2026, to receive payment.

Total available for this group: Between $37,000 and $75,000 will be distributed among all valid claims from this period.

Payment amount: Your share of the available funds based on the difference between stacked and unstacked premiums you paid. If total claims exceed the available amount, payments will be reduced proportionally.

How Much Money Can You Get?

Payment amounts depend on:

• How much more you paid for stacked versus unstacked coverage
• How long you maintained stacked coverage on a single vehicle
• Which group you’re in (automatic payments or claims required)
• The total number of valid claims filed

For automatic payment group members (2018-2025), you’ll receive up to 100% of the premium difference you overpaid, but the actual amount may be less depending on the total number of eligible class members.

For claims-required group members (2009-2018), your payment depends on how many people file valid claims and how the $37,000-$75,000 fund is divided.

How to File Your Progressive Settlement Claim

If You’re in the Automatic Payments Group (2018-2025):

For payments $10 or more: You don’t need to do anything. A check will be mailed automatically to your address on file. However, you can visit www.nmuimsettlement.com to:

• Update your mailing address
• Choose a different payment method (PayPal, Venmo, Zelle, or EpiqPay)

For payments under $10: You MUST visit www.nmuimsettlement.com within 90 days of receiving your notice and select your payment method, or you’ll forfeit your payment.

If You’re in the Claims Required Group (2009-2018):

Online: Visit www.nmuimsettlement.com and submit the online claim form by January 12, 2026.

By mail: Download and print the claim form from www.nmuimsettlement.com and mail it (postmarked by January 12, 2026) to:

Epiq
P.O. Box 3339
Portland, OR 97208-3339

What information you’ll need:

• Your name and contact information
• Your Progressive policy number (if known)
• Confirmation that you had stacked UM/UIM coverage on a single vehicle in New Mexico during the class period

IMPORTANT: Do NOT file a claim if you don’t qualify. Claims are submitted under penalty of perjury. Fraudulent claims harm other eligible class members and can result in legal consequences.

Progressive Settlement Deadlines

January 12, 2026: Deadline to file a claim (for 2009-2018 group), opt out of the settlement, or file an objection

February 23, 2026: Final approval hearing at 1:30 p.m. in New Mexico Second Judicial District Court, Bernalillo County Courthouse, Courtroom 406, 400 Lomas Blvd NW, Albuquerque, NM 87102

February 26, 2026: Final deadline to elect payment method for automatic payment group members entitled to less than $10

Approximately 45 days after final approval: Settlement payments will be distributed

When Will You Receive Payment?

The settlement administrator will distribute payments approximately 45 days after the court grants final approval of the settlement at the February 23, 2026 hearing, assuming there are no appeals.

Payments will be sent via:

• Check by mail (default option)
• PayPal
• Venmo
• Zelle
• EpiqPay

Any unclaimed or forfeited settlement funds will be donated to Equal Access to Justice Inc., subject to court approval.

Your Rights as a Class Member

You have four options:

Option 1: Do Nothing (If You’re in the Automatic Payment Group)

If your payment is $10 or more, you’ll automatically receive a check. If it’s under $10, you must elect a payment method or you’ll lose your payment.

Option 2: File a Claim (If You’re in the Claims Required Group)

Submit your claim by January 12, 2026, to receive your share of the settlement. By participating, you give up your right to sue Progressive separately about these stacked coverage premium claims.

Option 3: Opt Out (Exclude Yourself)

Submit a request for exclusion postmarked by January 12, 2026. If you opt out, you won’t receive any settlement money, but you preserve your right to sue Progressive individually about these claims. Send your exclusion request to the settlement administrator at the address above.

Option 4: Object to the Settlement

If you think the settlement is unfair, file an objection with the court postmarked by January 12, 2026. You can object and still receive settlement benefits if the court approves the settlement. However, if you opt out, you cannot object. Include:

• Your name, address, and telephone number
• The case name and number (Peck v. Progressive Northern Insurance Company, Case No. D-202-CV-2023-00816)
• A written statement of all reasons you object to the settlement
• Proof that you’re a class member

Mail objections to both the court and the attorneys listed on the settlement website.

Understanding Stacked vs. Unstacked UM/UIM Coverage

To understand why this settlement matters, you need to know how UM/UIM coverage works in New Mexico.

What is UM/UIM Coverage?

Uninsured/Underinsured Motorist (UM/UIM) coverage protects you when you’re injured by a driver who either:

• Has no insurance (uninsured motorist coverage)
• Doesn’t have enough insurance to cover your damages (underinsured motorist coverage)

This coverage pays for your medical bills, lost wages, pain and suffering, and other damages when the at-fault driver can’t.

Stacked Coverage

Stacked UM/UIM coverage combines the coverage limits from multiple vehicles on your policy. If you have three cars with $25,000 in UM coverage each, stacking gives you $75,000 in total coverage.

Premium: Higher, because you’re getting more total coverage

Benefit: Significantly more protection if you’re injured by an uninsured/underinsured driver

Unstacked Coverage

Unstacked UM/UIM coverage gives you only the limit for the vehicle you’re in when injured. Even if you have three cars on your policy, you can only access one vehicle’s worth of coverage.

Premium: Lower, because you’re getting less total coverage

Benefit: Basic protection limited to one vehicle’s coverage amount

The Problem with Single-Vehicle Stacking

When you only have one vehicle on your policy, stacked and unstacked coverage are identical—there’s nothing to stack. You get the same coverage either way.

The lawsuit alleges Progressive charged higher premiums for “stacked” coverage on single-vehicle policies even though customers received no additional benefit, essentially charging extra for nothing.

Why New Mexico Law Matters

New Mexico requires auto insurance companies to offer UM/UIM coverage to policyholders. The state has specific regulations about how this coverage must be priced and disclosed.

The lawsuit alleged Progressive’s practice of charging higher premiums for stacked coverage on single-vehicle policies violated:

• New Mexico’s Unfair Insurance Practices Act
• New Mexico’s Unfair Trade Practices Act
• Common law principles of unjust enrichment
• Contractual obligations to policyholders

Progressive denies these allegations but agreed to refund affected policyholders and change its practices going forward.

What Changes Is Progressive Making?

As part of the settlement, Progressive has agreed to:

• Stop selling stacked UM/UIM coverage on single-vehicle policies in New Mexico
• Refund policyholders who paid extra for stacked coverage on single vehicles
• Pay attorneys’ fees and costs (up to $977,609.04) separately from the settlement fund, so class member payments aren’t reduced

This ensures future New Mexico customers with single-vehicle policies won’t be charged for coverage that provides no benefit.

Similar Insurance Coverage Settlements

Progressive isn’t the first insurance company to face class action lawsuits over UM/UIM coverage practices.

Progressive’s other New Mexico settlement: In a separate case (Martinez v. Progressive), Progressive agreed to a settlement addressing allegations it misrepresented UIM coverage and improperly applied offsets for third-party insurance limits. That settlement offers automatic payments and claim options for New Mexico policyholders between 2004-2022.

State Farm: Settled a nationwide class action for $250 million over allegations it undervalued UM/UIM claims by not properly accounting for policy benefits.

Allstate: Faces ongoing litigation claiming it sold unlawful UM/UIM coverage to Lyft riders by making coverage secondary instead of primary.

GEICO: Settled multiple state-level lawsuits over UM/UIM coverage calculation methods and premium charges.

Insurance coverage lawsuits have become increasingly common as policyholders scrutinize how companies calculate premiums, value claims, and disclose coverage limitations.

Common Mistakes to Avoid

Missing the January 12, 2026 deadline: If you’re in the claims-required group (2009-2018), file early. Late claims will not be accepted.

Not selecting a payment method for small payments: If you’re entitled to less than $10, you must elect your payment method within 90 days or forfeit your payment.

Filing without qualifying: Only file if you actually had stacked UM/UIM coverage on a single vehicle in New Mexico during the class period. False claims are illegal.

Forgetting to update your address: If you’ve moved since you had your Progressive policy, update your address on the settlement website so your payment reaches you.

Throwing away the notice: If you received a notice by mail or email (sent November 28, 2025), save it. It contains your Notice ID needed to access the settlement website.

FAQs About the Progressive Stacked UM/UIM Settlement

How do I know if I had stacked UM/UIM coverage?

Check your Progressive policy declarations page. It will show whether your UM/UIM coverage was “stacked” or “unstacked.” If you don’t have your policy documents, contact the settlement administrator at the phone number on the settlement website.

What if I had multiple vehicles but only one was covered at certain times?

You may still qualify. The settlement covers periods when you had stacked coverage while insuring only a single vehicle, even if you had multiple vehicles on your policy at other times.

Do I need an attorney to file a claim?

No. Class counsel already represents all class members at no cost. You can file your claim yourself without hiring an attorney. Attorneys’ fees are paid separately by Progressive and won’t reduce your payment.

What if I can’t find my policy number?

You can still file a claim. The settlement administrator can help identify your eligibility. Provide as much information as you can, such as the approximate dates you had Progressive insurance in New Mexico and your contact information during that time.

Can I attend the final approval hearing?

Yes. The hearing is open to the public and will take place on February 23, 2026, at 1:30 p.m. in Courtroom 406 at the Bernalillo County Courthouse, 400 Lomas Blvd NW, Albuquerque, NM 87102. However, attendance is not required to receive settlement benefits.

What happens if the court doesn’t approve the settlement?

If the court rejects the settlement at the final approval hearing, no payments will be made and the lawsuit will continue. You’ll receive notice of any changes.

Are settlement payments taxable?

Settlement payments that reimburse you for premiums you already paid are typically not taxable. However, consult a tax professional for advice specific to your situation.

What if I moved out of New Mexico?

You can still qualify if you lived in New Mexico and had a qualifying Progressive policy during the class period (2009-2025), even if you’ve since moved to another state.

Can I claim if I no longer have Progressive insurance?

Yes. You don’t need to be a current Progressive customer. As long as you had a qualifying policy during the class period, you can file a claim.

What if I had stacked coverage on a single motorcycle or RV?

Motorcycles and recreational vehicles are included in the settlement. Any single covered vehicle with stacked UM/UIM coverage qualifies.

How to Maximize Your Settlement Payment

File early: Don’t wait until January 12. Submit your claim as soon as possible if you’re in the claims-required group.

Update your contact information: Make sure the settlement administrator has your current address and preferred payment method.

Save your confirmation: Keep copies of your claim submission and confirmation number.

Check for multiple policies: If you had more than one Progressive policy in New Mexico with stacked coverage on a single vehicle, you may be entitled to refunds for each policy period.

Elect electronic payment: PayPal, Venmo, Zelle, and EpiqPay payments typically arrive faster than paper checks.

The Bigger Picture: Insurance Consumer Protection

This settlement reflects growing scrutiny of insurance industry practices that may harm consumers. Key concerns include:

Premium transparency: Are customers paying for coverage that provides real value?

Disclosure requirements: Do policyholders understand what they’re buying and whether it’s necessary?

Claims handling: Are insurance companies properly valuing and paying claims?

Regulatory oversight: Are state insurance departments adequately protecting consumers?

Class action lawsuits serve to hold insurance companies accountable and push for practices that truly serve policyholders’ interests rather than maximizing company profits at customer expense.

Contact Information and Resources

Official Settlement Website: www.nmuimsettlement.com

Settlement Administrator Mailing Address:
Epiq
P.O. Box 3339
Portland, OR 97208-3339

Court Case: Peck v. Progressive Northern Insurance Company, Case No. D-202-CV-2023-00816, New Mexico Second Judicial District Court

For questions about the settlement, visit the official website or check the notice you received for contact information.

Do not contact the court or court clerk’s office about this settlement. Direct all questions to the settlement administrator.

Take Action Before the January 12, 2026 Deadline

If you had Progressive insurance in New Mexico with stacked UM/UIM coverage on a single vehicle between 2009 and 2025, don’t miss this opportunity to claim your refund.

If you’re in the automatic payment group (2018-2025):

• Payments of $10+ will be mailed automatically
• Visit www.nmuimsettlement.com to update your address or choose a different payment method
• If your payment is under $10, you MUST elect a payment method within 90 days

If you’re in the claims-required group (2009-2018):

• File your claim by January 12, 2026
• Visit www.nmuimsettlement.com to submit online
• Or download, print, and mail the claim form (postmarked by January 12)

This settlement ensures you’re reimbursed for premiums you paid for coverage that provided no benefit. Progressive has agreed to stop this practice going forward, but you must file a claim or elect payment to receive your refund.

Don’t leave your money on the table. Visit www.nmuimsettlement.com today and take action before the January 12, 2026 deadline passes.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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