New Jersey Manufacturers Insurance Class Action Settlement

Consumers who leased a vehicle New Jersey Manufacturers Insurance Co. insured and declared a total loss between March 19, 2015, and Aug. 6, 2025, may qualify to claim a cash payment for sales tax from a class action settlement.

New Jersey Manufacturers Insurance Co. agreed to settle a class action lawsuit alleging it underpaid sales tax amounts owed to certain insured lessees of leased vehicles when settling total loss claims.

Who can file an NJM claim?

Class members must meet the following criteria:

• They leased a vehicle covered under any New Jersey automobile insurance policy New Jersey Manufacturers Insurance Co. issued.
• They made a first-party property damage claim for auto physical damage (comprehensive or collision loss) between March 19, 2015, and Aug. 6, 2025.
• NJM declared the leased vehicle a total loss.

How much can class members get?

Class members who submit a valid and timely claim form are eligible for payment of the full estimated leased vehicle sales tax payment at the applicable state rate based on the policy address and date of loss. The settlement administrator calculates the amount as the average estimated sales tax on the lease capitalized cost minus any sales taxes New Jersey Manufacturers Insurance Co. already paid for that claim.

For the purposes of the settlement, the sales tax on the lease capitalized cost is 75.4% of the sales tax on the full vehicle value as NJM determined on the date of loss.

The settlement administrator will use the settlement fund to pay attorneys’ fees and litigation costs, which is estimated to reduce each class member’s payment by approximately 26%.

How to claim a settlement payment

Class members can submit the online claim form using the unique ID and PIN provided on their settlement notice or download, print and complete the PDF claim form.pdf) and mail it to the settlement administrator. The deadline is Nov. 15, 2025.

Settlement administrator's mailing address: McCullough v. NJM Settlement, PO Box 4209, Portland, OR 97208-4209

Required information

• To file an online claim, class members must log in with the unique ID and PIN from the settlement notice they received.
• All class members must provide:
• Their New Jersey Manufacturers Insurance Co. claim number or, if unknown, the NJM policy number at the time of the total loss
• The date of the loss
• The year, make and model of the totaled leased vehicle

Payout options

• Paper check

Settlement fund breakdown

The settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $2,000,000
• Attorneys' expenses: $21,000 (estimated)
• Service award to class representative: $5,000
• Payments to eligible class members: The remainder of the fund

Important dates

• Deadline for exclusion: Oct. 1, 2025
• Fairness hearing: Oct. 31, 2025
• Deadline to file a claim: Nov. 15, 2025

When is the McCullough v. NJM payout date?

The settlement administrator will issue payments approximately 120 days after the court grants final approval or the claims deadline, whichever is later.

Why was this class action settlement filed?

The class action lawsuit alleged New Jersey Manufacturers Insurance Co. breached certain auto insurance policies by underpaying sales taxes owed to insured lessees of leased vehicles when settling total loss claims.

NJM denies these allegations, but he parties agreed to settle to avoid the uncertainties and expenses of continued litigation.

Sources

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