Progressive’s Texas PIP Settlement Pays 5% Plus 11.452% Interest on Medical Bills Paid Late Between 2016 and 2026 — but Only If You File by January 19, 2027

As of October 16, 2026, this Progressive PIP insurance settlement is open for claims and not yet approved. Notices went out by email and postcard, and the notice says what receiving one means: “If you received an email notice or postcard notice, Progressive’s records show that you are a Class Member.” There is no flat check. Nothing is paid unless you file: “Because this is a claims-made settlement, you must submit a Claim Form to receive a cash payment.” The form is online only, and “must be submitted online no later than January 19, 2027.”

The case is about what Texas law says an insurer owes when it pays a medical bill late. The plaintiffs, Brian Koetter and Elyssa Parven, allege that Progressive “failed to timely handle medical bills submitted under PIP coverage in accordance with the deadlines set forth in the Texas Prompt Payment of Claims Act and the Texas Insurance Code, and did not pay statutory remedies in every instance.” Progressive denies it did anything wrong and settled “to avoid the costs, delay, and uncertainty of further litigation”; the court has not ruled on the merits.

What does Progressive PIP cover? PIP, as the Texas Third Court of Appeals described it in this very case, “is a form of no-fault insurance” limited to medical expenses and lost wages. This settlement concerns only the timing of the medical-bill part, and only under Texas-based policies issued by Progressive County Mutual.

There are two groups, defined line item by line item. The 30-Day Class: you submitted a covered medical bill under PIP on a Texas-based policy, and Progressive paid and issued an Explanation of Benefits (EOB) for a line item “more than 30 days after receiving your bill, with an EOB print date between August 30, 2016, and June 1, 2026.” The 15-Day Class is the same with “more than 15 business days”. Progressive’s officers and directors, the judge and the lawyers are excluded.

The payment is a formula run on Progressive’s own billing data. For 15-day line items: “11.452% annual interest based on the 15-Business-Day Interest Days and the line item’s Allowed Amount.” For 30-day line items: “a flat five percent (5%) of the line item’s Allowed Amount, and (2) 11.452% annual interest based on the 30-Day Interest Days.” A line item in both groups is paid in two stages — interest from the 15th business day to the 30th day, then the 5% plus interest from the 30th day until the EOB was printed. “You do not need to calculate the amount yourself.”

In dollars, by our arithmetic from that formula: a $1,000 line item paid with 30 interest days in the 30-day group comes to $50 plus $9.41, or $59.41; a $1,000 item with ten interest days in the 15-day group comes to about $3.14. Summaries of the settlement agreement give the same two examples. Small or barely late bills produce small amounts; large bills paid months late produce more.

The $8 million figure is how Top Class Actions reported the deal; the notice itself names no total fund. Summaries of the agreement describe $8 million as Progressive’s ceiling for claim payments plus fees, with class payments capped at $6 million and cut proportionally if valid claims exceed it. We could not open the agreement to confirm that. What the notice does say: class counsel will ask for up to $2,000,000 in fees and costs and up to $10,000 each for the two class representatives, and “these amounts will NOT be deducted from the money available to Class Members” — nor will notice and administration costs.

To get paid: file the claim form online at TravisCountyPIPSettlement.com by January 19, 2027. Notice-based summaries say you need the identifiers printed on your email or postcard notice; keep it. Questions go to the administrator at 1-888-808-4386.

To keep your own lawsuit: mail a signed letter saying you want to be excluded from the Koetter v. Progressive Settlement, with your name, address and phone number, “postmarked no later than November 12, 2026”, to Koetter v. Progressive Settlement Administrator, c/o Verita Global, LLC, P.O. Box 301132, Los Angeles, CA 90030-1132. Excluded class members get no money.

To object: file a written objection with the Travis County District Clerk, 1700 Guadalupe Street, Austin, TX 78701, and mail copies to class counsel and defense counsel, filed and postmarked by November 12, 2026. The notice adds an unusual condition: an objector must be available to be deposed “within seven (7) days of service of your timely written objection.”

When the money comes: not before the hearing. Judge Mauzy holds the final approval hearing on December 17, 2026 at 9:00 a.m. in the 419th Judicial District Court, Travis County Civil Courthouse, 1700 Guadalupe Street, Austin. The notice says payments come “if the Court grants ‘final approval’ of the Settlement and after any appeals are resolved.” No payment date has been announced.

What you give up by staying in: the release is broad. Class members who do not opt out cannot sue Progressive “for any legal claims arising out of or relating in any way to the facts and circumstances alleged in this case, including any legal claims arising out of Progressive’s handling of PIP claims.” If you have an open PIP dispute with Progressive in Texas, that sentence matters before November 12.

The notice is real and court-authorized; its heading reads “A court authorized this Notice. This is not a solicitation from a lawyer.” The genuine contact points are the website TravisCountyPIPSettlement.com, the toll-free number 1-888-808-4386 and the Verita Global P.O. box in Los Angeles. Progressive is the payer but not the contact: the notice says “Please do not contact Progressive or defense counsel about this settlement,” and the judge and court clerk will not answer questions.

The payment is calculated from Progressive’s billing records, not from receipts you send in. A message that asks for a fee, points to a different website, or promises a fixed sum is not from this settlement. Comment sections asking to be “added” do nothing: the only ways in are being in Progressive’s records and filing the official online form.

Is there a class action lawsuit against Progressive insurance? Yes — this one, filed in Travis County in 2018, and others in other states, including the separate Colorado total-loss settlement linked below. This case had a rocky road. The trial court, with Judge Catherine Mauzy presiding, certified a 15-Day Class and a 30-Day Class on April 27, 2022. On December 31, 2024 the Third Court of Appeals in Austin (No. 03-22-00275-CV) reversed that order and remanded the case. The settlement now resolves it on a class basis by agreement; the notice says the court “has not yet decided that this case meets the requirements to be a class action lawsuit.”

The settlement is a compromise. Texas law, as the appeals court summarized it, lets a claimant recover “interest on amount of the claim at the rate of 18 percent a year as damages” against a non-compliant insurer, and the plaintiffs also asked whether class members are owed a “12% penalty on the paid amount.” The settlement pays 11.452% interest, plus 5% on 30-day items.

How long does Progressive take to settle a personal injury claim? This settlement does not answer that and does not handle individual injury claims. The only timing on the record is Progressive’s own policy promise, quoted by the appeals court, to “notify you in writing whether the claim will be paid or has been denied, or whether more information is needed” within 15 business days. For a pending bodily-injury or PIP dispute, talk to your adjuster or a Texas lawyer — and weigh the November 12, 2026 exclusion deadline first.