AAA (Interinsurance Exchange of the Automobile Club) has agreed to pay $4.15 million to settle a class action lawsuit alleging the company improperly reduced or offset underinsured motorist (UIM) claims for New Mexico policyholders.
The case, Smith v. Interinsurance Exchange of the Automobile Club (Case No. 1:22-cv-00447-WJ-JMR), was filed in the U.S. District Court for the District of New Mexico. If you purchased New Mexico auto insurance with UM/UIM coverage from AAA between January 1, 2010, and May 4, 2022, or had a UIM claim reduced during that period, you may be eligible for compensation.
You may be eligible to file a claim if you:
Compensation varies by claim type:
Offset Claims: Class members whose UIM benefits were reduced by at-fault driver payments may receive up to $25,000 (amounts may reduce proportionally based on the number of claims filed).
Premium Refund: Those who purchased UM/UIM coverage may receive a partial premium refund, which varies based on premiums paid and settlement administration costs.
Filing your claim is quick and easy:
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Download for iPhone Download for AndroidUnderinsured motorist coverage helps pay for damages when the at-fault driver's insurance limits are too low to fully cover your injuries or property damage. It's designed to bridge the gap between what the other driver's insurance pays and your actual losses.
The lawsuit claimed that AAA improperly reduced underinsured motorist claim payments by subtracting the amount paid by the at-fault driver's insurance. This allegedly violated how underinsured motorist coverage should work under the policy terms.
Individual payout amounts from the $4.15 million settlement fund haven't been announced yet. The amount you receive will depend on factors like the number of eligible claims filed and the specifics of your case.
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