Travelers Settles New Mexico UIM Coverage Lawsuit With 29% Premium Refund Option

Travelers Agrees to Settle Claims Over Misleading UIM Coverage in New Mexico

The dispute centers on a practice called offsetting. When an underinsured driver hits you and their liability coverage pays out, Travelers allegedly subtracted that liability payment from whatever your own underinsured motorist (UIM) policy owed you. The result, plaintiffs argued, was coverage that looked robust on paper but shrank to nothing in practice.

The lawsuit alleged that Travelers and its affiliates collected premiums for what amounted to misleading or illusory UIM coverage and failed to explain how offsets could reduce or eliminate benefits after an accident. Plaintiffs also argued the practice breached insurance contracts and violated New Mexico state law.

Travelers denied the allegations. The company agreed to settle, the source notes, specifically to avoid the expense and risk of continued litigation and a possible trial. No admission of wrongdoing accompanies the 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."

For New Mexico drivers already navigating some of the most complex auto insurance requirements in the Southwest, the case is a reminder of how deeply policy language matters. The Save Max Quote Index, drawn from 3.3 million+ real quote requests, consistently shows that UIM coverage is one of the most misunderstood line items shoppers encounter when comparing New Mexico auto insurance rates. The SMQI finds that many shoppers add UIM to their cart without fully understanding how offsets, stacking rules, or benefit caps could limit what they actually collect after a crash.

Who Qualifies for a Piece of the Settlement

Eligibility is broadly defined, which means a meaningful number of New Mexico residents may have a valid claim without realizing it.

To qualify, you must have been a New Mexico automobile insurance policyholder or insured under a policy issued by one of the covered Travelers entities between January 1, 2015 and August 16, 2022, and your policy must have included UIM coverage.

The covered companies include:

• 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.

Eligibility extends beyond named policyholders. Passengers and authorized drivers under a qualifying policy during the class period also count. The settlement additionally covers heirs, executors, administrators, successors, and assigns of qualifying individuals, which matters significantly for families of people who suffered fatal crashes and may have wrongful death claims pending.

Two Payout Paths: Claim Reevaluation vs. Premium Refund

This is where the settlement gets practical. You have two distinct options, and picking the wrong one could mean leaving money on the table.

Option 1: Offset Reevaluation

If Travelers denied or reduced your UIM claim because it applied an offset, subtracting the at-fault driver's liability payout from your UIM benefits, you can ask for a fresh evaluation without that offset. A neutral evaluator will review your damages and determine a revised payment.

The ceiling is the amount of the original offset, but the outcome could be lower or even zero if your damages do not support a higher figure. There is no guaranteed floor.

One automatic carve-out exists: eligible class members with wrongful death claims will automatically receive the offset amount and do not need to file a claim form.

Option 2: 29% Premium Refund

If you had no UIM claim, or if you choose not to pursue Option 1, you can file for a refund equal to 29% of all UIM premiums you paid to Travelers during the class period.

"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."

The refund path is simpler and more predictable. Option 1 carries upside but also uncertainty. If your accident involved substantial uncompensated damages, the reevaluation route is worth exploring before defaulting to the percentage refund.

Neighboring state comparison is useful context here. Texas auto insurance and Colorado auto insurance markets have seen similar debates about UIM stacking and offset transparency, reinforcing why understanding exactly what your UIM policy covers is critical before you ever need to file a claim.

Settlement Dollars at a Glance

The total pool available to class members is not fixed. It grows or shrinks based on how many valid claims are submitted and how Option 1 evaluations resolve. That structure creates an incentive to file early and with complete documentation.

How to File Before the September 27 Deadline

Filing is straightforward, but you will need the notice Travelers mailed to class members.

Every claimant must provide the unique ID printed on that settlement notice. If you file online, you also need the PIN from the same document. Lost your notice? Contact the settlement administrator directly.

You can submit your claim in two ways:

• File online through the settlement claims portal
• Print the PDF claim form and mail it to the settlement administrator

The mailing address is: Aguilar-Tafoya and Brewton v. Travelers, Claims Administrator, P.O. Box 5413, Portland, OR 97228-5413.

Legal representatives filing on behalf of a class member must include documentation of their authorization to act. Option 1 claimants should also be prepared to supply additional documentation supporting their original UIM claim, since the neutral evaluator will need records to assess revised damages.

Payment delivery options are electronic payment or a paper check mailed to the address you provide on your claim form. Option 2 claimants can expect their checks or transfers no later than 60 days after the September 27 deadline, putting the latest possible payout date in late November 2026.

What this means for you

If you carried a Travelers auto policy with UIM coverage in New Mexico at any point between January 1, 2015 and August 16, 2022, pull up your old policy documents and compare your situation against both payout options before September 27, 2026. If Travelers reduced or denied a UIM claim after an accident, request Option 1 and gather your medical and damage records now. If you had no claim, file for the 29% premium refund before the deadline passes and money goes unclaimed. Visit savemaxauto.com/states/new-mexico/ to understand how New Mexico UIM rules compare so you can make a more informed choice on your next policy.

FAQ

What is a Travelers UIM insurance settlement and why does it matter to me?

The Travelers UIM insurance settlement resolves allegations that Travelers and affiliated companies sold underinsured motorist coverage in New Mexico without adequately disclosing that offsets could reduce or eliminate your benefits after a crash. If you held a qualifying policy between January 1, 2015 and August 16, 2022, you may be entitled to either a claim reevaluation or a 29% refund of your UIM premiums paid during that period.

What is the difference between Option 1 and Option 2 in this settlement?

Option 1 asks a neutral evaluator to recalculate your denied or reduced UIM claim without the offset applied, potentially recovering benefits up to the amount that was originally subtracted. Option 2 is a simpler flat refund of 29% of your total UIM premiums paid to Travelers during the class period and is available to anyone who had no UIM claim or who prefers certainty over a variable outcome.

When will settlement payments be issued?

Option 1 payments will be issued no later than 90 days after the settlement administrator completes the claim review process. Option 2 payments will be issued no later than 60 days after the September 27, 2026 claim deadline, which puts the latest expected date in late November 2026.

Do wrongful death claimants need to file a claim form?

No. Eligible class members with wrongful death claims will automatically receive the offset amount without needing to file a claim form, according to the settlement terms documented by Claim Depot.

What if I cannot find my settlement notice with the unique ID and PIN?

Your unique ID and PIN are required to file, so contact the settlement administrator at the Portland, Oregon address listed above or through the online claims portal to request replacement information. Legal representatives must also supply documentation of their authorization before a claim will be processed.

About Cassidy Richey

Cassidy Richey is a Content Writer at Save Max Auto with a research background in behavioral psychology. She focuses on the consumer side of insurance shopping, fraud and protection coverage, and Q&A guides. Read more from Cassidy Richey →

Edited by Kyle Greenwood.

Methodology

This article is grounded in the source linked above. Save Max Auto data points referenced here are drawn from the Save Max Quote Index (SMQI), a proprietary instrument reflecting 3,364,317 real consumer quote requests submitted to savemaxauto.com. State and carrier rankings reflect the lifetime dataset; year-over-year shifts reflect a rolling 12-month window. The index is refreshed monthly. External authority figures referenced (NAIC, NHTSA, state regulators) reflect the most recent public data releases available at time of writing.

Sources

• Primary source: Claim Depot, "Travelers Auto UIM Insurance Class Action Settlement"