Metropolitan / Farmers Direct UIM Class Action Settlement -- Up to $25,000 for New Mexico Offset Claims Plus Premium Refunds
By Steve Levine
Published: April 13, 2026
Settlement Fund: $1,200,000
Offset Claim Payment: Up to $25,000 Each
Class Period: October 1, 2010 -- January 31, 2022
Offset Claim Deadline: May 26, 2026
What Is the Metropolitan UIM Class Action Settlement About?
Metropolitan Direct Property and Casualty Insurance Company (now known as Farmers Direct Property and Casualty Insurance Company) has agreed to a $1,200,000 class action settlement to resolve allegations that it improperly reduced underinsured motorist (UIM) claim payments to New Mexico drivers. The case, Margaret Vega v. Metropolitan Direct Property and Casualty Insurance Company, Case No. 1:22-cv-616-JB-SCY, is pending in the U.S. District Court for the District of New Mexico.The Metropolitan UIM class action settlement alleges that Metropolitan violated New Mexico law by misrepresenting UIM coverage, failing to disclose the limitations of UIM coverage in its written materials, and applying what is known as a "Schmick offset" -- a reduction in UIM benefits equal to the amount already paid by the at-fault driver's liability insurance. The plaintiff asserts claims for breach of contract, negligent misrepresentation, violations of New Mexico's Unfair Trade Practices Act and Unfair Insurance Practices Act, breach of good faith and fair dealing, and unjust enrichment, among others.
Metropolitan (Farmers Direct) denies all wrongdoing and no court has determined that Metropolitan violated any law. By agreeing to this Metropolitan UIM settlement, the company is not admitting liability. The $1.2 million settlement fund also covers related Farmers Direct entities: Economy Premier Assurance Company and Farmers Property & Casualty Insurance Co.
Who Qualifies for the Metropolitan UIM Class Action Settlement?
You qualify for the Metropolitan class action settlement if you meet either of the following conditions:• Offset Subclass: You had an underinsured motorist claim with Metropolitan that was reduced or "offset" by the amount paid by the at-fault driver in an accident between October 1, 2010 and January 31, 2022
• Premium Refund Class: You purchased a New Mexico auto insurance policy from Metropolitan containing UM/UIM motorist coverage at any time between October 1, 2010 and January 31, 2022
Important: If the at-fault driver in your accident had NO liability insurance at all, then your claim was an uninsured motorist claim (not an underinsured motorist claim) and you are not eligible for the $25,000 Offset Subclass payment. However, you may still qualify for the automatic UM/UIM premium refund if you had a New Mexico policy during the class period.
How Much Will I Get from the Metropolitan UIM Settlement?
Your Metropolitan UIM class action settlement payment depends on which subclass you fall into:Offset Subclass Payment: Up to $25,000 per valid claim. Metropolitan has allocated $360,000 of the $1.2 million settlement fund specifically for Offset Subclass payments. Offset Subclass Members who submit a timely, valid claim form by May 26, 2026 will receive up to $25,000 each. If the total value of valid offset claims exceeds $360,000, payments will be reduced pro rata. If the total is less than $360,000, remaining funds roll into the Direct Premium Refund Fund.
UM/UIM Premium Refund: Automatic check mailed to your last known address. Class members eligible only for a premium refund (not an offset claim) will receive a partial refund of premiums paid for UM/UIM coverage during the class period. No claim form is required. The exact refund amount depends on how much you paid in UM/UIM premiums during the class period and how many class members qualify.
Any remaining Metropolitan settlement funds after all payouts, attorney fees, and administration costs will be donated to Equal Access for Justice, Inc.
How Do I File a Metropolitan UIM Class Action Settlement Claim?
Only the Offset Subclass needs to file a Metropolitan settlement claim form. If you qualify for the Offset Subclass (your UIM claim was reduced by the at-fault driver's insurance payout between October 2010 and January 2022), you must:• Request a claim form at MetropolitanUIMSettlement.com
• Sign the Metropolitan UIM class action settlement claim form
• Mail the claim form postmarked no later than May 26, 2026
All Metropolitan settlement claims will be verified against Metropolitan's own business records. Only valid claims will be paid. Knowingly submitting a false claim is a violation of federal law.
If you qualify only for the premium refund (Option 2), you do NOT need to file a Metropolitan settlement claim -- the settlement administrator will automatically mail you a check after the settlement is approved. Make sure your address on file with Metropolitan or the settlement administrator is current.
Key Deadlines for the Metropolitan UIM Settlement
• April 27, 2026: Deadline to exclude yourself (opt out) from the Metropolitan class action settlement• May 11, 2026: Deadline to object to the terms of the Metropolitan UIM settlement
• May 26, 2026: Deadline to submit a valid Offset Subclass claim form
If you do nothing, you will remain in the Metropolitan UIM class action settlement class. You will receive an automatic premium refund check if you qualify, but you will not receive the $25,000 offset payment unless you file a claim form by May 26, 2026.
What Is a Schmick Offset?
A "Schmick offset" refers to the New Mexico insurance industry practice of reducing underinsured motorist benefits by the amount the injured driver has already received from the at-fault driver's liability insurance. The term comes from earlier New Mexico case law addressing this practice. The Metropolitan class action settlement alleges that Metropolitan applied Schmick offsets in a way that effectively left New Mexico policyholders with less UIM coverage than they reasonably believed they had paid for when purchasing the policy.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:Settlement Website: MetropolitanUIMSettlement.com
Submit Claim
Official Settlement Notice (PDF)
Sources
• Official Settlement Website -- MetropolitanUIMSettlement.com• Court-authorized Class Notice, Margaret Vega v. Metropolitan Direct Property and Casualty Insurance Company, Case No. 1:22-cv-616-JB-SCY (D.N.M.)
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. OpenClassActions.com is a consumer advocacy and class action news site, and is not a class action administrator or a law firm.Case Information
Case: Margaret Vega v. Metropolitan Direct Property and Casualty Insurance Company, Case No. 1:22-cv-616-JB-SCY
Court: U.S. District Court, District of New Mexico
Defendant: Metropolitan Direct Property and Casualty Insurance Company (now Farmers Direct Property and Casualty Insurance Company)
Also Covered: Economy Premier Assurance Company and Farmers Property & Casualty Insurance Co.
Settlement Fund: $1,200,000
Offset Subclass Allocation: $360,000 ($25,000 max per claim)
Premium Refund Class: Automatic mailed check (no claim required)
Class Period: October 1, 2010 -- January 31, 2022
Offset Claim Deadline: May 26, 2026
Opt-Out Deadline: April 27, 2026
Objection Deadline: May 11, 2026
Attorneys' Fees: Up to 33 1/3% of fund plus costs and NM gross receipts tax
Administration Costs: ~$110,000 (paid from fund)
Class Representative: Joshua Smith
Class Counsel: Kedar Bhasker; Geoffrey Romero (Romero, Harada & Winters LLC); Corbin Hildebrandt P.C.
Cy Pres: Equal Access for Justice, Inc.
Settlement Website: MetropolitanUIMSettlement.com
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Pre-Qualify| Metropolitan UIM Settlement Summary | |
| Status | Open — File Claim Now |
|---|---|
| Settlement Fund | $1,200,000 |
| Offset Max Payment | Up to $25,000 |
| Premium Refund | Automatic (no claim) |
| Class Period | Oct 1, 2010 – Jan 31, 2022 |
| Offset Claim Deadline | May 26, 2026 |
| State | New Mexico Only |
| Court | D.N.M. (1:22-cv-616) |
| Website | Metropolitan UIM Settlement |