AAA New Mexico UIM Settlement 2026 - File a Claim by April 29 or Get an Automatic Refund
AAA is settling a class action lawsuit alleging it failed to properly tell New Mexico policyholders that their underinsured motorist payouts would be reduced by whatever the at-fault driver's insurance already paid. If you had a UIM claim offset by AAA between 2010 and 2022, you may be eligible to file for up to $25,000. If you simply purchased UM/UIM coverage from AAA in New Mexico during that period, you will automatically receive a partial premium refund check in the mail without filing anything. Two tracks, one settlement, and one of the highest per-claim ceilings around.
What happened
Class period: January 1, 2010 through May 4, 2022
AAA (Interinsurance Exchange of the Automobile Club) is accused of failing to properly inform New Mexico policyholders that payments on underinsured motorist (UIM) claims would be reduced, or "offset," by the amount already paid by the at-fault driver's liability insurance. This practice, known as the Schmick offset, is a rule under New Mexico law but plaintiffs allege AAA never properly disclosed it to customers or adequately explained how it affected their coverage.
Plaintiff Joshua Smith filed a class action lawsuit alleging AAA breached its insurance policy contracts, was negligent, engaged in unfair trade practices, violated the New Mexico Unfair Insurance Practices Act, and was unjustly enriched. AAA denies all allegations and maintains it complied with applicable law and policy terms.
The settlement covers two groups: policyholders who actually had a UIM claim offset during the class period (who can file for up to $25,000), and policyholders who simply purchased UM/UIM coverage during the class period (who automatically receive a partial premium refund with no filing required).
What you can get
UIM Offset Claim Payment
Up to $25,000
For policyholders who submitted a UIM claim between January 1, 2010 and May 4, 2022 that was reduced by the at-fault driver's insurance payment; must file a Claim Form with Unique ID and PIN; amount may be reduced pro rata if total valid claims exceed funds available; requires filing by April 29, 2026
Automatic Premium Refund
Amount varies
For all other New Mexico UM/UIM policyholders during the class period who did not have a claim offset; no filing required; check will be mailed automatically; amount based on UM/UIM premiums paid during the class period, total class members, and funds remaining after offset claims and fees are paid
Key dates
| Action | Date | What it means |
|---|---|---|
| Claim deadline | April 29, 2026 (for offset subclass members who need to file a claim) | Last day to file a claim |
| Opt out | March 30, 2026 | Keep your right to sue separately |
| Object | March 30, 2026 | Tell the court you disagree |
| Final hearing | TBD — scheduled for a date on or after May 13, 2026; check https://aaauimsettlement.com/ for updates | Judge decides whether to approve |
Who may qualify
- You purchased a New Mexico automobile insurance policy with UM/UIM coverage between January 1, 2010 and May 4, 2022
- AND/OR you submitted a UIM claim during that period that was reduced or offset by the amount paid by the at-fault driver's insurer
- Note: If the at-fault driver had no insurance at all (uninsured, not underinsured), you had an uninsured motorist claim and are not eligible to file under the offset subclass, though you may still qualify for the automatic premium refund
How to file
- If your postcard notice included a Unique ID and PIN, you are in the offset subclass and must file to receive payment:
- Submit a Claim Form online at https://aaauimsettlement.com/Login using your Unique ID and PIN by April 29, 2026
- Or download, complete, sign, and mail a paper Claim Form postmarked by April 29, 2026 to: Smith v. AAA P.O. Box 5339 Portland, OR 97208-5339
- Have all supporting documentation ready before you start the online form, as your claim cannot be saved mid-session.
- If your postcard notice did not include a Unique ID and PIN, you do not need to file anything. A premium refund check will be mailed to you automatically.
- If you believe you should have received a Unique ID and PIN but did not, you may print and mail a paper claim form or call 1-877-268-1879 for assistance.
Proof required
- For offset subclass claim (up to $25,000): Unique ID and PIN from your postcard notice; detailed information about your UIM claim and losses; supporting documentation you wish to provide; all claims will be verified against AAA's business records
- For premium refund (automatic): no filing or documentation required
- Note: Knowingly submitting a false claim is a violation of federal law; only valid claims will be paid
Payment timing
Payments will be made after the court grants final approval of the settlement and any appeals are resolved. The Final Approval Hearing has not yet been scheduled but will be set for a date on or after May 13, 2026. Both offset claim payments and automatic premium refund checks will be mailed to class members. Payment method details beyond check are not specified.
Important links
Contact
Extra details
This settlement has two completely separate tracks. Check your postcard notice first. If it has a Unique ID and PIN printed on it, you are in the offset subclass and must file a claim by April 29, 2026 to receive up to $25,000. If it does not have a Unique ID and PIN, you are in the premium refund group and will automatically receive a check — no action needed.
The opt-out and objection deadlines are March 30, 2026. Anyone who wants to preserve the right to sue AAA separately must act before that date.
If the at-fault driver in your accident was completely uninsured (not just underinsured), you had an uninsured motorist claim, not a UIM claim, and you are not eligible to file under the offset subclass. You may still qualify for the automatic premium refund if you purchased UM/UIM coverage during the class period.
The online claim form cannot be saved mid-session. Have all your documentation and details ready before you start.
The Final Approval Hearing date has not yet been set; it will be scheduled for a date on or after May 13, 2026.
The only authorized settlement website is https://aaauimsettlement.com/
FAQ
What is a UIM offset and why does it matter?
How do I know which settlement track I am in?
What if I lost my postcard or never received one?
I was hit by someone with no insurance at all, not someone who was underinsured. Do I qualify?
What if the court does not approve the settlement?
Can I still opt out?
What happens if I do nothing?
Info only. Verify details on the official site. Not legal, financial, or tax advice. Legal
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