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If you purchased underinsured motorist coverage from Travelers in New Mexico between 2015 and 2022, you may be eligible to receive a partial refund of your insurance premiums or have a previously reduced claim reevaluated.
The Travelers Indemnity Co. and its affiliates agreed to settle a class action lawsuit alleging they sold misleading auto insurance policies that improperly reduced payout amounts after car accidents.
The class action litigation, titled Aguilar-Tafoya and Brewton v. Travelers (Case No. 1:23-cv-0247 JB/JMR), was filed in the U.S. District Court for the District of New Mexico. The lawsuit alleged that The Travelers Indemnity Co., The Standard Fire Insurance Co., and affiliated insurance providers engaged in unfair billing and claims practices regarding underinsured motorist (UIM) bodily injury coverage.
According to the complaint, Travelers collected insurance premiums from drivers for UIM coverage without clearly explaining how state-permitted offsets worked. Underinsured motorist coverage is designed to protect drivers when an at-fault motorist’s insurance limits are too low to cover total medical costs or damages. However, plaintiffs alleged that Travelers systematically applied “offsets”—reducing its UIM payouts by the exact amount paid out by the at-fault driver’s insurance policy.
Because New Mexico’s minimum legal liability limit often matched the minimum UIM coverage sold to policyholders, the offset calculation frequently wiped out UIM benefits entirely. Plaintiffs argued that consumers were effectively sold “illusory” coverage—paying extra monthly premiums for insurance protection that delivered zero actual benefit when an accident occurred. While Travelers denies all allegations of statutory violations and contract breaches, the insurer agreed to a class action settlement to resolve the legal dispute.
The court-approved settlement structure provides distinct recovery paths depending on whether you suffered physical injuries in a collision or simply paid policy premiums without filing a UIM claim.
Under the terms of the settlement agreement, eligible class members can choose between two main benefit options:
Option 1 — UIM Claim Reevaluation: If you were injured in a motor vehicle accident during the class period and Travelers denied or reduced your UIM claim due to an offset reduction, you can request to have your claim reevaluated. The administrator will recalculate your UIM benefit without applying the at-fault driver’s offset, potentially unlocking significant unpaid policy benefits.
Option 2 — 29% Premium Refund: If you did not file an accident claim, or if you prefer a direct financial recovery, you can elect to receive a cash refund equal to 29% of all UIM bodily injury premiums you paid to Travelers during your policy period between 2015 and 2022.
Additionally, the settlement includes special terms for claims involving fatal accidents. For class members whose claims involved wrongful death where a UIM offset was applied, Travelers will automatically calculate and issue an “auto-pay” reimbursement of the offset amount. Representatives of wrongful death victims do not need to file a claim form to receive this automatic distribution.
Determining your eligibility under the settlement involves reviewing your vehicle insurance history in New Mexico. You may be eligible to participate if you fit into the court-defined class criteria:
Policy Timeline: You were a policyholder or named insured under a New Mexico auto insurance policy issued by Travelers, The Standard Fire Insurance Co., or related Travelers companies between January 1, 2015, and August 16, 2022.
Coverage Type: Your auto policy included underinsured motorist (UIM) bodily injury coverage during that timeframe.
Insured Status: Eligibility extends to primary policyholders, family members listed on the policy, passenger occupants, and authorized drivers who were covered under a qualifying Travelers policy during the class period.
You can participate in this settlement even if you are no longer insured by Travelers, even if you were a passenger rather than the primary policy owner, and regardless of whether you filed an insurance claim in the past.
Note: Unless your claim involves a wrongful death auto-pay, you must submit a valid claim form by the court deadline to receive either a 29% premium refund or a claim reevaluation.
The legal foundation of the Aguilar lawsuit centers on long-standing insurance principles regarding fair trade practices and contractual good faith. In state insurance regulations, coverage is deemed “illusory” when an insurer charges a fee for a policy benefit that, in practice, can rarely or never be collected due to built-in policy exclusions or offset rules.
In New Mexico, courts have repeatedly addressed how auto insurers disclose UIM coverage limits. When insurance carriers market UIM coverage as an added layer of financial safety, consumer protection laws require them to clearly explain how offset rules impact potential payouts before collecting monthly premiums.
By bringing class action litigation, everyday drivers can challenge misleading billing structures across entire insurance fleets. These collective actions hold large corporations accountable and help ensure insurance disclosures remain transparent for all policyholders.
Filing a claim for your premium refund or claim reevaluation is straightforward and can be completed online or by mail.
To complete your submission, follow these simple steps:
Locate Your Official Notice: Check your mail or email for a settlement notice from the administrator, Epiq Global. This document contains your unique Claim ID and PIN. (If you did not receive a notice, you can still apply online using your personal details and policy information).
Visit the Official Settlement Website: Go directly to [www.AguilarUIMClassSettlement.com](https://www.AguilarUIMClassSettlement.com).
Select Your Option: Choose whether you are requesting Option 1 (Claim Reevaluation) for a past accident or Option 2 (29% Premium Refund) for premiums paid.
Provide Required Information: Enter your Unique ID and PIN, confirm your contact details, and attach any requested documentation if you are seeking a claim reevaluation under Option 1.
Submit Before the Cutoff: Complete and submit your claim form online or postmark your physical paper claim no later than September 27, 2026.
Payments for Option 2 premium refunds are scheduled to be issued no later than 60 days after the claim deadline passes. For Option 1 claim reevaluations, disbursements will occur within 90 days following the completion of the administrator’s review process.
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