MetLife Auto Insurance $1.2M Class Action Settlement

Current or former policyholders whom Metropolitan Direct Property and Casualty Insurance Co, also known as MetLife, insured in New Mexico and whom, between Oct. 1, 2010, and Jan. 31, 2022, the company either reduced an underinsured motorist claim by the amount the at-fault driver paid or who purchased uninsured/underinsured motorist coverage during that period may be eligible to submit a claim for up to $25,000 or a partial premium refund from a class action settlement.

Metropolitan Direct Property and Casualty Insurance Co. agreed to pay $1.2 million to settle a class action lawsuit alleging it misrepresented or failed to disclose the limitations of underinsured motorist coverage and applied improper offsets to claims. The plaintiffs claimed breach of contract, negligence, unfair trade practices and violations of New Mexico state law.

The settlement class includes an estimated 27,000 MetLife auto insurance policies.

Who are the class members?

• Offset subclass members: Current or former policyholders who had an underinsured motorist claim reduced or offset by the amount the at-fault driver paid in an accident that occurred between Oct. 1, 2010, and Jan. 31, 2022
• Premium refund class members: Individuals who purchased a New Mexico automobile insurance policy from Metropolitan Direct Property and Casualty Insurance Co. containing UM/UIM coverage at anytime between Oct. 1, 2010, and Jan. 31, 2022

Who is excluded from the class?

Current or former policyholders who had uninsured motorist claims in which the at-fault driver had no liability insurance do not qualify for an offset subclass payment.

How much will settlement payments be?

• Offset subclass: Class members can submit a claim for a cash payment of up to $25,000. The settlement administrator will determine the final payment amount by the number of valid offset claims filed. The total amount available for these payments is capped at $360,000.
• Premium refund subclass: Class members can submit a claim to receive a partial refund of UM/UIM premiums paid during the class period. The settlement administrator will determine the payment amount by the total amount of premiums paid.

How to claim a class action rebate

Offset subclass members must submit a claim to receive a settlement payment. They can file a claim online or print the PDF claim form to mail to the settlement administrator.

Settlement administrator's mailing address: Vega v. Metropolitan Settlement Administrator, P.O. Box 4196, Portland, OR 97208-4196

The offset subclass member claim deadline is May 26, 2026.

Premium refund subclass members do not need to submit a claim to receive a payment.

Required claim information

To submit an offset subclass claim online, class members must provide the unique ID and PIN from the settlement notice they received.

Payout options

• Electronic payment
• Paper check mailed to the address provided

$1.2 million MetLife settlement fund

The $1,200,000 settlement fund will include:

• Settlement administration costs: Approximately $110,000
• Attorneys’ fees: Up to $399,60033 plus New Mexico gross receipts tax
• Attorney's expenses: To be presented to the court for approval at a later date
• Incentive award to class representative: Up to $10,000
• Offset subclass payments: Up to $360,000
• Premium refund subclass payments: Remaining settlement funds

Important dates

• Exclusion deadline: April 27, 2026
• Deadline to submit a claim form: May 26, 2026
• Final approval hearing: July 1, 2026

When is the MetLife auto insurance settlement payout date?

The settlement administrator will issue payments to eligible class members after it completes claim processing and the court grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit claimed Metropolitan Direct Property and Casualty Insurance Co. misrepresented or failed to disclose the limitations of underinsured motorist coverage and applied offsets that reduced the benefits paid to policyholders. The plaintiff alleged violations of New Mexico law, including breach of contract, negligence, unfair trade practices and other related claims.

MetLife denies the allegations but agreed to settle to avoid the expense and risk involved in continued litigation.

Sources

1. Class notice
2. Settlement website FAQ page
3. Settlement agreement