Liberty Mutual $6.5M New Mexico UM/UIM Settlement, Are You Eligible to Claim? Claims Until April 30, 2026

Liberty Mutual Insurance Co. and its affiliate Safeco Insurance Co. of America agreed to pay $6,500,000 to settle a class action lawsuit alleging they failed to properly disclose to New Mexico policyholders that their underinsured motorist benefits could be reduced — or eliminated entirely — when the at-fault driver carried only minimum liability coverage. 

New Mexico drivers who held a Liberty Mutual or Safeco auto insurance policy with UM/UIM coverage, or who filed a UIM claim that was reduced, between October 1, 2010, and March 31, 2022, may be eligible to claim up to $25,000 or receive a partial premium refund. The claim deadline is April 30, 2026.

Quick Facts

Current Status & What Happens Next

• The settlement is currently open for claims. Class members in the offset subclass must submit a claim form by April 30, 2026, while class members in the direct premium refund subclass will receive automatic payments with no claim form required.
• The opt-out exclusion deadline is April 15, 2026, and the final approval fairness hearing is scheduled for June 2, 2026.
• Payments will distribute after the court grants final approval and resolves any appeals following the June 2, 2026 hearing.

What Is the Liberty Mutual New Mexico UM/UIM Lawsuit About?

The class action alleged Liberty Mutual Insurance Co., its affiliates, and Safeco Insurance Co. of America failed to properly inform New Mexico policyholders that the company would reduce their underinsured motorist (UIM) benefit payments by the amounts the at-fault driver’s insurer paid. The lawsuit alleged breach of contract, negligence, unjust enrichment, breach of the duty of good faith and fair dealing, and violations of New Mexico’s Unfair Trade Practices Act.

To understand why this matters, it helps to know how New Mexico’s UIM laws work. New Mexico follows what is called “gap theory” for UIM coverage, meaning an insurer may offset the amount paid by the at-fault driver’s liability insurance against the insured’s UIM benefit. In practice, when both drivers carry only the state minimum of $25,000 in coverage, the offset cancels out the UIM benefit entirely — leaving a policyholder with no payout despite paying premiums for UIM protection.

Plaintiff Gregory Crutcher filed the original class action after Safeco denied his UIM claim, concluding that the at-fault driver did not meet the statutory definition of an underinsured motorist because the at-fault driver’s liability coverage equaled Crutcher’s UM/UIM coverage limits. Liberty Mutual and Safeco deny all wrongdoing but agreed to settle to avoid the costs and risks of continued litigation.

Who Is Eligible to File a Claim?

The settlement class includes individuals who, between October 1, 2010, and March 31, 2022, either purchased or paid a premium for a New Mexico automobile insurance policy from Liberty, its affiliates, or Safeco that included UM/UIM coverage, or made a claim for underinsured motorist benefits under a New Mexico policy where Liberty reduced or denied their benefits due to a Schmick offset.

The settlement divides class members into two separate subclasses:

Offset Subclass (must file a claim):

• You may qualify if you submitted a UIM claim under a New Mexico Liberty Mutual or Safeco policy between October 1, 2010, and March 31, 2022.
• You may qualify if Liberty Mutual, its affiliates, or Safeco reduced your UIM benefit payment by the amount the at-fault driver’s insurer paid — a reduction known as a “Schmick offset.”
• You may qualify if your UIM claim was denied entirely because the at-fault driver’s liability limits equaled or exceeded your UIM coverage limits.

Direct Premium Refund Subclass (no claim form needed):

• You may qualify if you purchased and paid premiums for a New Mexico UM/UIM policy from Liberty Mutual, its affiliates, or Safeco during the class period.
• You may qualify even if you never filed a UIM claim, as long as you held a qualifying policy during the class period.
• Class members eligible for the direct premium refund payment do not need to submit a claim form — the settlement administrator will automatically process their payment using the information it has on file.

How Much Can You Receive?

The amount each class member may receive depends on their subclass. Offset subclass members can submit a claim for up to $25,000. However, the settlement caps the total payout for this group at $2,000,000. If total valid claims from offset subclass members exceed $2,000,000, the settlement administrator will reduce each payment proportionally on a pro-rata basis.

Direct premium refund subclass members will receive a partial refund of the premiums they paid. The settlement administrator calculates each refund by dividing the total UM/UIM premiums the class member paid during the class period by the total direct premium refund fund — which is the remaining settlement fund after administrative costs, attorneys’ fees, service awards, and offset subclass payments are deducted.

Here is how the $6,500,000 settlement fund breaks down:

If the total offset subclass claims are less than $2,000,000, the settlement administrator will add the unused remainder to the direct premium refund fund for distribution to premium refund subclass members.

Payment options: PayPal, Venmo, Zelle, or a physical check.

How to File a Claim

⚠️ Important: Only offset subclass members — those whose UIM benefits were reduced or denied due to a Schmick offset — need to submit a claim form. If you held a qualifying policy but never filed a UIM claim, you belong to the direct premium refund subclass and will receive an automatic payment with no action required.

Step 1 — Visit the official settlement website at crutcheruimsettlement.com to access the online claim form.

Step 2 — Enter your login information as provided in the settlement notice mailed to you.

Step 3 — Confirm your membership in the offset subclass by certifying under penalty of perjury that you submitted a UIM claim that Liberty Mutual, its affiliates, or Safeco reduced by the amount the at-fault driver’s insurer paid.

Step 4 — Enter the date of your motor vehicle crash or loss that gave rise to the UIM claim.

Step 5 — Sign the claim form (electronically online, or by hand if mailing a PDF).

Step 6 — Submit your completed claim by April 30, 2026, online or by mail to: Crutcher v. Liberty Mutual Insurance Co. et al., Settlement Administrator, P.O. Box 5338, Portland, OR 97228-5338.

Save your confirmation number and a copy of your submitted form for your records.

Estimated time to complete: 5 minutes.

Important Deadlines & Dates

Frequently Asked Questions

Do I need a lawyer to file a claim? 

No. Offset subclass members can file a claim directly at crutcheruimsettlement.com without hiring an attorney. Class counsel already represents all class members at no charge to individuals. You may hire your own lawyer if you prefer, but you would pay that attorney’s fees yourself.

Is this settlement legitimate? 

Yes. The case, Crutcher v. Liberty Mutual Insurance Co., et al., Case No. 1:18-cv-00412-JCH-LF, is pending in the U.S. District Court for the District of New Mexico. The settlement administrator is Epiq Global, a recognized court-appointed settlement administrator. Always use only the official settlement website at crutcheruimsettlement.com before submitting any personal information.

When will I receive my payment? 

No confirmed payment date exists yet. The settlement administrator will distribute payments after the court resolves any appeals and grants final approval of the settlement. The Final Approval Hearing is June 2, 2026, so payments are unlikely before mid-to-late 2026 at the earliest.

What if I missed the claim deadline? 

The claim deadline for offset subclass members is April 30, 2026. Missing that date disqualifies you from receiving an offset subclass payment. If you are a premium refund subclass member, you do not need to file at all — your payment processes automatically. If you miss the opt-out deadline of April 15, 2026, you cannot exclude yourself from the settlement and lose the right to sue Liberty Mutual or Safeco separately over these claims.

Will this settlement payment affect my taxes? 

Settlement payments from insurance coverage disputes may be treated differently than ordinary income, but tax treatment depends on your individual circumstances and how the IRS characterizes the payment. Consult a qualified tax professional for advice specific to your situation.

What is a “Schmick offset” and why does it matter? 

Under New Mexico’s gap theory UIM statutes, an insurer can offset the amount paid by the at-fault driver’s liability coverage against the policyholder’s UIM benefit. When both drivers carry only the state minimum of $25,000 in coverage, the offset cancels out the UIM benefit entirely — leaving the injured driver with no UIM payout despite having paid premiums for that protection. The lawsuit alleged Liberty Mutual and Safeco collected those premiums without clearly disclosing this limitation to policyholders.

I never filed a UIM claim — do I still qualify? 

Yes. Policyholders who purchased UM/UIM coverage during the class period but did not have a claim offset belong to the direct premium refund subclass and will receive an automatic partial refund of the premiums they paid during the class period. No claim form is required — the settlement administrator will process the payment automatically.

Does Safeco count as Liberty Mutual for this settlement? 

Yes. Liberty Mutual acquired Safeco Insurance Co. of America, and policies issued under Liberty Mutual, its affiliates, and Safeco are all covered by this settlement. If you held a qualifying Safeco policy in New Mexico during the class period, you are a class member with the same rights and options as Liberty Mutual policyholders.

Sources & References

• Official Settlement Website (Epiq Global): crutcheruimsettlement.com
• PACER / CourtListener — Case Docket: courtlistener.com — Crutcher v. Liberty Mutual, 1:18-cv-00412
• New Mexico Supreme Court Opinion — Crutcher v. Liberty Mutual, 2022-NMSC-001: FindLaw Case Opinion
• Lewis Brisbois Legal Analysis — UM/UIM Aftermath (2022): lewisbrisbois.com

Last Updated: March 10, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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