Liberty Mutual and Safeco $6.5 Million UIM Settlement (New Mexico): Final Approval Granted, Claims Closed

The case is Crutcher v. Liberty Mutual Insurance Company et al., Case No. 18-cv-00412 JCH-LF, in the U.S. District Court for the District of New Mexico before Judge Judith C. Herrera. The defendants are Liberty Mutual Insurance Company, Liberty Personal Insurance Company, First National Insurance Company of America, LM General Insurance Company, LM Property and Casualty Insurance Company, LM Insurance Company, Safeco Insurance Company of America, and Safeco National Insurance Company, referred to together as Safeco.

New Mexico law reduces, or "offsets," underinsured motorist benefits by whatever the at-fault driver's insurer pays. This is called the Schmick offset. If you carry the state minimum of $25,000 per person in UIM coverage and the at-fault driver also carries a $25,000 minimum policy, the offset can reduce your UIM benefit to zero. The plaintiff alleged that Safeco sold this coverage without explaining that limit, and sued for breach of contract, negligence, unjust enrichment, bad faith, and violations of New Mexico's Unfair Trade Practices Act.

The case produced an important ruling. On a question sent from the federal court, the New Mexico Supreme Court held on October 4, 2021 that minimum-limits UIM coverage is illusory when not explained, and that insurers must adequately disclose its limitations. That opinion answered only the certified question. Safeco denies any wrongdoing and says it followed its policies and the law. Our underinsured motorist coverage lawsuit page covers related claims.

The settlement class includes all Safeco policyholders and insureds between October 1, 2010 and March 31, 2022 who either:

• Bought or paid a premium for a New Mexico insurance policy that included UM/UIM coverage, or
• Made a claim for UIM benefits after October 1, 2010 under a New Mexico policy that lacked the disclosure and exclusion the Crutcher ruling requires, and had benefits reduced or denied because of a Schmick offset.

The second group is the Offset Subclass. If the at-fault driver had no liability insurance at all, your claim was an uninsured motorist claim, not an underinsured one, and you were not eligible for an offset payment. You could still receive the premium refund.

Excluded are anyone who had already sued Safeco over a Schmick offset before the notice date, anyone who settled an offset claim and signed a final release before the notice date, the presiding judges, and anyone who opted out.

Group	Payment	Claim needed?
Offset Subclass	Up to $25,000	Yes, by April 30, 2026
Premium refund group	Pro rata share of refund fund	No

Offset Subclass payments are capped at $2,000,000 in total; if valid offset claims exceed that, each one is reduced proportionally, and if they fall short, the rest goes to the premium refund fund. Anyone who receives an offset payment does not also get a premium refund.

The premium refund is proportional to what you paid. Each person's share equals their total UM/UIM premiums from October 1, 2010 through March 31, 2022 as a fraction of all such premiums. The refund fund is what remains after administration costs, attorneys' fees, the service award, and offset payments. No per-person estimate has been published, and because the fund is spread across more than a decade of New Mexico policyholders, most refunds are likely to be modest.

Class counsel said they would ask for up to $2,332,138.28 in attorneys' fees including New Mexico gross receipts tax, up to $6,000 in costs, and a $10,000 service award for the plaintiff, all from the fund. The court may award less. See who pays the lawyers in a class action.

Only Offset Subclass members needed to file. They could submit a claim form online by 11:59 p.m. Mountain Time on April 30, 2026, or by mail to Crutcher v. Liberty Mutual Insurance Company et al., Settlement Administrator, P.O. Box 5338, Portland, OR 97228-5338. The settlement website also posts a Neutral Evaluation Appeal Form for disputed offset claims.

The official website now states that the claim filing deadline was April 30, 2026 and claims are no longer accepted. If you filed or are due a refund:

• Update your mailing address by calling the administrator at 1-877-684-5777 or writing to the P.O. box above.
• Keep your claim confirmation and any letters about your offset claim.
• Do not pay anyone who offers to speed up your payment; see our guide to settlement scams.

Event	Date
Class period	October 1, 2010 to March 31, 2022
Opt-out and objection deadline	April 15, 2026 (passed)
Offset claim deadline	April 30, 2026 (passed)
Final fairness hearing	June 4, 2026, 10:00 a.m.
Final approval granted	June 23, 2026

As of September 2026, the official website reports that final approval was granted on June 23, 2026, and has posted the Final Approval Order and Final Judgment. The FAQ says benefits are paid after the settlement is approved and becomes final, including the end of any time to appeal. The site has not posted a payment date. For what to expect, see how to check a settlement's status.

If you are in the premium refund group, you did not need to file, and you should receive your refund automatically. If you had a UIM claim reduced by an offset and did not file by April 30, 2026, you get the premium refund instead of an offset payment, unless the administrator accepts a late claim.

Anyone who did not opt out by April 15, 2026 is bound by the release and cannot sue Safeco separately over the claims in this case. People who opted out kept that right. Our guide to opting out or objecting explains the trade-off, and a free case review can connect you with independent attorneys if you have a serious injury claim that an insurer reduced or denied.

A related New Mexico settlement with Progressive over stacked coverage is covered in the Progressive stacked UM/UIM settlement page. For your payment, rely only on the official settlement website linked above.