Liberty Mutual and Safeco have agreed to pay $6.5 million to settle a class action lawsuit alleging the insurers improperly reduced underinsured motorist (UIM) benefits for New Mexico policyholders using an improper "Schmick offset."
The case, Crutcher v. Liberty Mutual Insurance Co., et al. (Case No. 18-cv-00412 JCH-LF), was filed in the U.S. District Court for the District of New Mexico. If you were a Safeco policyholder in New Mexico who purchased UM/UIM coverage between October 1, 2010, and March 31, 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:
Premium Refund Subclass: Automatic direct premium refund for those who purchased UM/UIM coverage — no claim form needed.
Offset Subclass: Members whose UIM benefits were reduced by at-fault driver's insurance payments may receive up to $25,000.
Filing your claim is quick and easy:
💡 Easier way: File with Class Action Buddy
Skip the paperwork. Our app auto-fills your claim form with your saved profile and submits it electronically in under 2 minutes.
Download for iPhone Download for AndroidThe current deadline to file a claim is Apr 30, 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.
New Mexico residents who had auto insurance policies with Liberty Mutual or Safeco and were not properly advised about underinsured motorist coverage options may qualify. Specific eligibility criteria are still being finalized.
The total settlement is $6.5 million. Individual payouts will vary based on your policy details and the number of valid claims. Exact amounts have not been announced yet.
Underinsured motorist (UIM) coverage protects you when you're in an accident with a driver who has some insurance, but not enough to cover all your damages. This settlement involves claims that Liberty Mutual and Safeco didn't properly explain this coverage option to their New Mexico customers.
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