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Consumers who had an automobile insurance policy with Liberty Mutual Insurance Co., its affiliates or Safeco Insurance Co. of America that included uninsured/underinsured motorist coverage in New Mexico or who filed a claim for UIM benefits between Oct. 1, 2010, and March 31, 2022, may be eligible to claim up to $25,000 or receive a partial premium refund from a class action settlement.
Liberty Mutual Insurance Co. agreed to pay $6.5 million to resolve a class action lawsuit. The lawsuit alleged breach of contract, negligence, unjust enrichment, breach of the duty of good faith and fair dealing, and violations of New Mexico’s Unfair Trade Practices Act. The plaintiffs claimed Liberty and its related companies failed to properly inform New Mexico policyholders it would reduce any underinsured motorist claim payments by amounts received from the at-fault driver’s insurer.
Who can file a claim?
Individuals qualify as class members if, between Oct. 1, 2010, and March 31, 2022, they:
- Purchased or paid a premium for a New Mexico automobile insurance policy from Liberty, its affiliates or Safeco that included UM/UIM coverage OR
- Made a claim for underinsured motorist benefits under a New Mexico policy that did not include the required disclosure and exclusion and Liberty, its affiliates or Safeco reduced or denied their benefits due to a “Schmick offset” (meaning it reduced their claim by the the insurer of the at-fault driver paid)
Within the settlement class, there are two main groups:
- Offset subclass: Policyholders who submitted a claim for underinsured motorist coverage benefits for a motor vehicle accident between Oct. 1, 2010, and March 31, 2022, and whose benefits Liberty, its affiliates or Safeco reduced by amounts the at-fault driver’s insurer paid
- Direct premium refund subclass: Policyholders who purchased UM/UIM coverage during the class period but did not have a claim offset as described above
How much can class members get?
The amount each class member may receive depends on their subclass:
- Offset subclass: These class members can submit a claim for up to $25,000. However, the settlement caps the total payout for this group at $2 million. If the total valid claims exceed $2 million, the settlement administrator will reduce each payment proportionally (pro rata).
- Direct premium refund subclass: These class members will receive a partial refund of the premiums they paid. The settlement administrator will calculate the refund amount by dividing the total UM/UIM premiums the class member paid during the class period by the total direct premium refund fund (which is the remaining settlement fund after administrative costs, attorneys’ fees, service awards and offset subclass payments).
How to claim a Liberty Mutual Insurance payment
Class members eligible for an offset subclass payment must submit a claim form by April 30, 2026. They can file a claim online or download and print the PDF claim form to complete and mail to the settlement administrator. The claim deadline is April 30, 2026
Settlement administrator's mailing address: Crutcher v. Liberty Mutual Insurance Co. et al., Settlement Administrator, P.O. Box 5338, Portland, OR 97228-5338
Class members eligible for a direct premium refund payment do not need to submit a claim form. The settlement administrator will automatically process their payment using the information it has on file.
If the class member's contact information changes after they submit a claim form, they must notify the settlement administrator to ensure they receive payment.
Is proof or documentation necessary to submit a claim?
Offset subclass payments must certify under penalty of perjury that they made a UIM claim that Liberty, its affiliates or Safeco reduced by the amount the at-fault driver’s insurer paid for an accident between Oct. 1, 2010, and March 31, 2022.
They must also provide the date of the crash/loss and their signature.
Payout options
- PayPal
- Venmo
- Zelle
- Physical check
$6.5 million settlement fund breakdown
The $6,500,000 settlement fund includes:
- Settlement administration costs: Amount not specified
- Attorneys’ fees: Up to $2,332,138.28
- Attorneys’ expenses: Up to $6,000
- Service award to class representative: $10,000
- Offset subclass payments: Up to $2 million
- Direct premium refund fund: Remaining funds after other costs and offset subclass payments
If the offset subclass claims are less than $2 million, the settlement administrator will add the remainder to the direct premium refund fund for distribution to other class members.
Important dates
- Deadline for exclusion: April 15, 2026
- Deadline to file a claim: April 30, 2026
- Final approval/fairness hearing: June 2, 2026
When is the Crutcher v. Liberty Mutual payout date?
The settlement administrator will distribute payments after the court resolves any appeals and grants final approval of the settlement.
Why is there a class action settlement?
The class action lawsuit alleged Liberty Mutual Insurance Co., its affiliates and Safeco Insurance Co. of America failed to properly inform New Mexico policyholders it would reduce their UIM benefits by the amounts the at-fault driver’s insurer paid.
The companies deny any wrongdoing but agreed to settle to avoid the risks and costs of continued litigation.
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