Liberty Mutual / Safeco $6.5 Million Class Action Settlement — New Mexico Auto Insurance Policyholders Can Claim Up to $25,000
By Steve Levine
Published: March 9, 2026
Claim Deadline: April 30, 2026
Payout: Up to $25,000
What Is This Settlement About?
If you had car insurance through Liberty Mutual or Safeco in New Mexico anytime between October 2010 and March 2022, this settlement may put money in your pocket — and in many cases, you do not need to do anything at all to get it.Here is the short version: New Mexico law requires drivers to carry underinsured motorist (UIM) coverage, which is supposed to protect you if you get hit by a driver who does not have enough insurance to cover your injuries. Most people who buy this coverage assume it will actually pay out if they need it. But because of a legal rule in New Mexico called the "Schmick offset," if you carried the minimum $25,000 in UIM coverage and the driver who hit you also carried the minimum $25,000 in liability insurance, your insurance company would subtract what the other driver's insurance paid from your UIM benefits. The math: $25,000 minus $25,000 equals zero. You paid premiums for coverage that could never actually pay out in the most common accident scenario.
The New Mexico Supreme Court ruled that this type of coverage is "illusory" — meaning it misleads average consumers into thinking they have protection they cannot actually use. The lawsuit alleged that Liberty Mutual and Safeco charged premiums for this illusory coverage for years without ever explaining the limitation. Liberty Mutual and Safeco deny any wrongdoing, but agreed to pay $6.5 million to settle the case.
Do I Qualify?
You qualify if you had an automobile insurance policy with Liberty Mutual Insurance Company, any of its affiliates, or Safeco Insurance Company of America that included uninsured/underinsured motorist (UM/UIM) coverage in New Mexico at any time between October 1, 2010 and March 31, 2022. You also qualify if you filed a claim for UIM benefits during that same period. This settlement is for New Mexico policyholders only.How Much Money Can I Get?
The payout depends on which of two groups you fall into:If you are in the offset subclass — meaning you filed a UIM claim and Liberty Mutual or Safeco reduced your benefits by the amount the at-fault driver's insurance paid — you can claim up to $25,000. You must file a claim form and certify under penalty of perjury that your UIM claim was reduced. You also need to provide the date of the accident.
If you are in the direct premium refund subclass — meaning you paid premiums for UM/UIM coverage but did not have a claim denied or reduced — you will receive a partial refund of the premiums you paid during the class period. The exact amount is calculated by dividing the total premiums you paid by the total direct premium refund fund. These payments are automatic. You do not need to file a claim form.
The total settlement fund is $6,500,000. If total offset subclass claims are less than $2 million, the leftover money gets added to the premium refund fund, which means bigger automatic refund checks for everyone else.
Which Insurance Companies Are Covered?
This settlement covers policyholders of Liberty Mutual Insurance Company, its affiliates, and Safeco Insurance Company of America. Safeco has been part of the Liberty Mutual Group since 2008. If your New Mexico auto insurance policy was issued by either company or any Liberty Mutual affiliate and included UM/UIM coverage during the class period, you may be a class member.How Do I File a Claim? (Offset Subclass)
If you are in the offset subclass (your UIM claim was reduced or denied), you must file a claim form by April 30, 2026. You can file online at the settlement website or download and print the PDF claim form and mail it to the settlement administrator. Your claim form must include a certification under penalty of perjury that Liberty Mutual, its affiliates, or Safeco reduced your UIM claim by the amount the at-fault driver's insurer paid, the date of the crash or loss, and your signature.Submit Claim
What If I Am in the Premium Refund Group?
If you paid premiums for UM/UIM coverage during the class period but did not have a UIM claim reduced or denied, you are in the direct premium refund subclass. You do not need to file anything. The settlement administrator already has your information and will process your payment automatically. If your mailing address or email has changed since you had the policy, you should contact the settlement administrator to make sure they can reach you.What Are the Important Dates?
Claim Deadline (offset subclass): April 30, 2026
Premium Refund (automatic): No filing needed — payments processed after final approval
Class Period: October 1, 2010 – March 31, 2022
What Happens If I Do Nothing?
If you are in the premium refund subclass and do nothing, you should still receive an automatic payment. If you are in the offset subclass and do nothing, you will not receive a payment for your reduced UIM claim. In either case, you will remain a class member and give up your right to sue Liberty Mutual or Safeco over these same claims.Case Information
Caption: Crutcher v. Liberty Mutual Insurance Co. et al., Case No. 1:18-cv-00412 (D.N.M.)
Court: U.S. District Court for the District of New Mexico
Judge: Honorable Judith C. Herrera
Settlement Fund: $6,500,000
Defendants: Liberty Mutual Insurance Co., Liberty Mutual affiliates, Safeco Insurance Company of America
Offset Subclass Fund: Up to $2,000,000 allocated for offset claims (up to $25,000 per person)
Premium Refund Fund: Remaining balance distributed pro rata as automatic premium refunds
How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:Official Settlement Notice (PDF)
Settlement Website: CrutcherUIMSettlement.com
Submit Claim
Sources
• Official Settlement Site — CrutcherUIMSettlement.com• FindLaw — Crutcher v. Liberty Mutual Insurance Company, New Mexico Supreme Court
• Lewis Brisbois — Crutcher v. Liberty Mutual Ins. Co. Analysis (November 2021)
Filing Class Action Settlement Claims
Please note that your claim form will be rejected if you submit a settlement claim with any fraudulent information. By providing this information and your sworn statement of its veracity, you agree to do so under the penalty of perjury. If you are not sure whether you qualify, visit the class action administrator's website. OpenClassActions.com is a consumer advocacy and class action news site, and is not a class action administrator or a law firm.
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Pre-Qualify| Liberty Mutual / Safeco NM Settlement Summary | |
| Status | Open — Offset Claims Filing Now / Premium Refunds Automatic |
|---|---|
| Claim Deadline | April 30, 2026 (offset subclass only) |
| Settlement Fund | $6,500,000 |
| Offset Subclass Payout | Up to $25,000 per person (claim form required) |
| Premium Refund Payout | Automatic — proportional refund of UM/UIM premiums paid (no filing needed) |
| Who Qualifies | NM policyholders with Liberty Mutual / Safeco UM/UIM coverage (Oct 2010 – March 2022) |
| Class Period | October 1, 2010 – March 31, 2022 |
| Case | Crutcher v. Liberty Mutual, No. 1:18-cv-00412 (D.N.M.) |
| Website | CrutcherUIMSettlement.com |