Travelers Auto UIM Insurance Class Action Settlement

Consumers who were a New Mexico policyholder or had underinsured motorist coverage with The Travelers Indemnity Co., The Standard Fire Insurance Co. or other related Travelers companies between Jan. 1, 2015 and Aug. 16, 2022, may be eligible to submit a claim for a partial refund of their UIM premiums or additional UIM benefits from a class action settlement.

The Travelers Indemnity Co. and its affiliates agreed to settle a class action lawsuit alleging they collected premiums for misleading or illusory UIM automobile insurance coverage and improperly applied offsets that reduced or eliminated UIM benefits after accidents involving underinsured drivers.

Who can file a claim?

Class members must meet the following criteria:

• They were a New Mexico automobile insurance policyholder or insured under a policy with any of the following companies between Jan. 1, 2015 and Aug. 16, 2022:
• The Travelers Indemnity Co.
• The Standard Fire Insurance Co.
• Travelers Casualty and Surety Co.
• Travelers Casualty Insurance Co. of America
• The Travelers Casualty Co.
• Travelers Casualty Co. of Connecticut
• Travelers Indemnity Co. of America
• Travelers Indemnity Co. of Connecticut
• Travelers Personal Insurance Co.
• Travelers Personal Security Insurance Co.
• Travelers Property Casualty Co. of America
• Travelers Property Casualty Insurance Co.
• Travelers Commercial Casualty Co.
• Travelers Commercial Insurance Co.

• Their policy included UIM coverage.
• They were a policyholder, passenger or authorized driver under a qualifying auto policy during the class period.
• The settlement also includes heirs, executors, administrators, successors and assigns of qualifying individuals.

How much are settlement payments?

Eligible class members can submit to receive one of the following:

• Option 1 - Potential claim payment: Class members who were injured in a car accident and whose UIM claim Travelers denied or reduced because it applied an offset, reducing the class member's UIM benefits by the amount paid by the at-fault driver’s liability coverage can submit a claim to have Travelers reevaluated and readjust their claim without the offset. A neutral evaluator will determine the payment amount. Depending on the damages, claimants may receive additional UIM benefits up to the amount of the offset but possibly less or nothing if their damages do not warrant a higher payment.
• Eligible class members with wrongful death claims will automatically receive the offset amount and do not need to file a claim form.

• Option 2 - Premium refund: Class members who do not submit a claim for Option 1 or those with no UIM claim can submit a claim to receive a refund equal to 29% of all UIM premiums they paid to Travelers during the class period.

How to claim a class action rebate

To receive a settlement payment, class members can file a claim online or print the PDF claim form to complete and mail to the settlement administrator.

Settlement administrator's mailing address: Aguilar-Tafoya and Brewton v. Travelers, Claims Administrator, P.O. Box 5413, Portland, OR 97228-5413

The claim deadline is Sept. 27, 2026.

Required proof and claim information

• All class members must provide the unique ID from the settlement notice they received. Online claimants must also provide the PIN from the same notice.
• Legal representatives submitting a claim on behalf of a class member must include documentation of authorization.
• Claimants submitting an Option 1 claim may be required to provide additional documentation for their claim reevaluation.

Payout options

• Electronic payment
• Paper check mailed to the address provided

Settlement fund breakdown

The settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys’ fees and expenses: Up to $2,100,000
• Service awards to class representatives: $10,000 each
• Payments to eligible class members: Total determined by number of valid claims filed

Important dates

• Deadline to opt out: June 29, 2026
• Final approval hearing: July 29, 2026
• Deadline to file a claim: Sept. 27, 2026

When is the Travelers auto insurance settlement payout date?

The settlement administrator will issue payments to eligible class members with Option 1 claims no later than 90 days after it completes the claim review process. It will issue payments to eligible class members with Option 2 claims no later than 60 days after the claim deadline.

Why is there a class action settlement?

This class action lawsuit claimed Travelers and related companies sold misleading UIM coverage in New Mexico by failing to explain the effect of offsets, which could reduce or eliminate UIM benefits after an accident. The plaintiffs claimed this practice breached insurance contracts and violated state law.

Travelers denied the allegations but agreed to settle to avoid the expense and risk of continued litigation and a possible trial.

Sources

1. Class notice
2. Official settlement website FAQ page
3. Claim form
4. Settlement agreement