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.
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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 AndroidThe current deadline to file a claim is Apr 29, 2026. Note: claims sent by mail must be postmarked by this date, and Class Action Buddy ships claim forms with a 7-day mailing buffer to ensure on-time delivery.
The maximum payout per eligible claimant is up to $25,000. Actual payments may be lower depending on the total number of valid claims filed and the available settlement fund.
Yes — this settlement requires proof of purchase. Acceptable proof typically includes receipts, credit card statements, photos of the product, or order confirmation emails. Check the official claim form for specifics.
You have two options: (1) Use the free Class Action Buddy mobile app — set up your profile once and the app auto-fills the PDF claim form, captures your signature, and submits the claim by mail on your behalf. (2) File directly with the settlement administrator using the official claim form linked on this page.
Underinsured 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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