Nationwide $2.65M New Mexico UM/UIM Class Action Settlement

Consumers who purchased a New Mexico automobile insurance policy with uninsured/underinsured motorist coverage from Nationwide Mutual Insurance Co. or related companies between Oct. 1, 2010, and March 31, 2022, or who submitted an underinsured motorist claim during that period that Nationwide reduced by the amount the at-fault driver’s insurer paid may be eligible to claim up to $25,000 or receive a partial premium refund from a class action settlement.

Nationwide Mutual Insurance Co. and its affiliates agreed to pay $2.65 million to resolve a class action lawsuit alleging breach of contract, negligence, unjust enrichment, bad faith and violations of New Mexico’s Unfair Trade Practices Act.

Who can file a claim?

There are two main groups of eligible class members:

• Offset subclass members: Anyone who had an underinsured motorist claim with Nationwide (or related companies) between Oct. 1, 2010, and March 31, 2022, and whose claim the company or companies reduced or offset by the amount the at-fault driver’s insurer paid
• Other settlement class members: Anyone who purchased a New Mexico automobile insurance policy from Nationwide (or related companies) that included UM/UIM coverage between Oct. 1, 2010, and March 31, 2022

How much can class members get?

The settlement provides two types of awards,:

• Offset subclass members: Eligible for a payment of $25,000. The total amount available for these payments is capped at $890,000. If the total value of valid claims exceeds this amount, the settlement administrator will reduce each payment proportionally (pro rata).
• Other settlement class members: Eligible for an automatic partial refund of premiums paid. The amount of the refund depends on:
• The total UM/UIM premiums all eligible class members paid
• The number of eligible class members
• The amount remaining in the settlement fund after offset subclass payments, attorneys’ fees, service awards and administration costs

How to claim a class action payment

Offset subclass members can file a claim online or download and print the PDF claim form, fill it out and mail it to the settlement administrator. The claim deadline is March 30, 2026.

Other settlement class members do not need to take any action. They will automatically receive a check to their last known address.

Class members whose address changed or changes before they receive payment must notify the settlement administrator to ensure they receive compensation.

Settlement administrator’s mailing address: Patricia Lucero v. Nationwide Mutual Insurance Co., et al., c/o Settlement Administrator, P.O. Box 5358, Portland, OR 97208-5358

What proof or documentation is required to submit a claim?

• Offset subclass members must provide the date of the loss or crash.
• To file an online claim, class members must provide the unique ID and PIN printed on the postcard or email notice they received. Those who did not receive a notice or lost theirs can submit a PDF claim form by mail.

The settlement administrator will verify claims using Nationwide’s business records.

Payout options

• PayPal
• Venmo
• Zelle
• Physical check mailed to the address on file

$2.65 million settlement fund breakdown

The $2,650,000 settlement fund includes.

• Settlement administration costs: Amount not specified
• Attorneys’ fees, costs and expenses: Up to $950,592
• Service award to class representative: $10,000
• Payments to offset subclass members: Up to $890,000
• Payments to other class members: Remaining funds after above deductions

Important dates

• Deadline to opt out: Feb. 28, 2026
• Deadline to file a claim: March 30, 2026

When is the Lucero v. Nationwide payout date?

The settlement administrator will issue payments after the court grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged Nationwide and related companies failed to properly inform New Mexico policyholders that it would reduce underinsured motorist claims by the amount the at-fault driver’s insurer paid. The plaintiffs claimed breach of contract, negligence, unjust enrichment, bad faith and violations of New Mexico’s Unfair Trade Practices Act.

Nationwide denied any wrongdoing but agreed to settle to avoid further litigation.

Sources

1. Class notice
2. Claim form
3. Settlement agreement
4. Settlement FAQ