Progressive has agreed to pay more than $1.7 million to settle a New Mexico class action lawsuit that accused the insurer of charging unfair premiums for stacked uninsured/underinsured motorist coverage on single-vehicle policies.
The original filing (Peck v. Progressive Northern Insurance Co., et al.) states this case arose from a dispute between plaintiff Jeremy Peck and Progressive over stacked UM/UIM coverage on a single-vehicle policy. It claims Peck purchased a motor vehicle policy from Progressive for his motor home that included stacked UM/UIM coverage.
The suit states, in part: “Stacked UM/UIM coverage permits an insured to aggregate the UM/UIM coverages on all vehicles insured under a policy. Plaintiff alleges that stacked UM/UIM coverage on a policy insurance for a single vehicle is illusory because the insured receives no benefit for the additional premium. Plaintiff alleges that Progressive does not disclose any benefits to the insured for paying the additional premium.”
The plaintiff alleges several claims against Progressive, including violation of the Unfair Insurance Practice Act, breach of contract, breach of implied covenant of good faith and fair dealing, violation of the Unfair Trade Practices Act, and civil conspiracy to violate the Trade Practice and Frauds Act, the Unfair Trade Practices Act and contractual and common law duties.
Progressive has not admitted any wrongdoing in its agreement to pay $1.765 million to settle the suit. The final approval hearing for the settlement is scheduled for February 23.
The settlement class includes those who were Progressive policyholders between January 1, 2009, and April 30, 2025, who resided in New Mexico and purchased or otherwise paid for an insurance policy that included stacked UM/UIM coverage while only insuring a single vehicle.
More detailed information about the settlement and eligibility can be found on the class action’s official website, here.
(Photo credit: Ken Wolter/Shutterstock.com)
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