$4.15M AAA underinsured motorist claims class action settlement

AAA agreed to a $4.15 million settlement to resolve a class action lawsuit claiming it reduced underinsured motorist claims by the amount paid by the at-fault driver.

The AAA settlement benefits consumers who had an underinsured motorist claim with AAA reduced or offset by the amount paid by the at-fault driver between Jan. 1, 2010, and May 4, 2022, or who purchased a New Mexico automobile insurance policy containing uninsured/underinsured motorist coverage between Jan. 1, 2010, and May 4, 2022.

Plaintiffs in the class action lawsuit claim that AAA wrongfully reduced underinsured motorist claims by the amount paid by the at-fault driver. This practice allegedly violated New Mexico law.

AAA is an insurance company that offers various types of coverage, including auto insurance.

AAA has not admitted any wrongdoing but agreed to pay $4.15 million to resolve the class action lawsuit.

Under the terms of the AAA insurance settlement, class members who had an underinsured motorist claim offset by the amount paid by the at-fault driver can receive a payment of up to $25,000. These payments may be reduced on a pro rata basis depending on the number of claims filed with the settlement.

Class members who purchased uninsured/underinsured motorist coverage during the class period can receive a partial premium refund. Refund amounts will vary depending on the amount class members paid in UM/UIM premiums, the cost of administering the settlement, the amount set aside for offset claim payments and other factors.

The deadline for exclusion and objection is March 30, 2026.

The final approval hearing for the AAA settlement is scheduled on or after May 13, 2026.

To receive a settlement payment, class members must submit a valid claim form by April 29, 2026.

Who’s Eligible

Those who purchased a New Mexico automobile insurance policy containing UM/UIM motorist coverage between Jan. 1, 2010, and May 4, 2022, or those who had an underinsured motorist claim reduced or “offset” by the amount paid by the at-fault driver in an accident between Jan. 1, 2010, and May 4, 2022.

Potential Award

Up to $25,000 or a partial premium refund

Proof of Purchase

AAA policy number and/or claim number

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

04/29/2026

Case Name

Smith v. Interinsurance Exchange of the Automobile Club, Case No. 1:22-cv-00447-WJ-JMR, in the United States District Court for the District of New Mexico

Final Hearing

05/13/2026

Settlement Website

AAAUIMSettlement.com

Claims Administrator

Smith v. Interinsurance Exchange of the Automobile Club
Settlement Administrator
P.O. Box 5339
Portland, OR 97208-5339
[email protected]
877-268-1879

Class Counsel

Kedar Bhasker
KEDAR BHASKER

Geoffrey Romero
ROMERO, HARADA, & WINTERS LLC

Corbin Hildebrandt
CORBIN HILDEBRANDT P.C.

Andrea Harris
VALLE, O’CLEIREACHAIN, ZAMORA & HARRIS

Defense Counsel

Rodger L. Eckelberry
Kevin P. Zimmerman
Michael E. Mumford
BAKER & HOSTETLER LLP

Meena H. Allen
ALLEN LAW FIRM LLC