Liberty Mutual customers may claim up to $25,000 in class action settlement — check if you qualify

A new class action settlement lets some insurance customers claim money from Liberty Mutual. Customers may get up to $25,000 or a partial refund of the insurance premiums they paid under the settlement. The lawsuit said that Liberty Mutual Insurance Co. did not properly follow its insurance contracts and may have handled some claims carelessly.

The case also said the company broke the Unfair Trade Practices Act in New Mexico, according to The Sun. The people who filed the lawsuit said that Liberty Mutual and its related companies did not clearly tell some customers about a rule that reduced their payments. Because of this rule, underinsured motorist claim payments were lowered. The payment was reduced by the amount the customer already received from the at-fault driver’s insurance company.

Companies involved in the case, including Safeco Insurance Co. of America, said they did nothing wrong. However, they still agreed to pay the settlement to avoid more court cases and legal costs. The settlement is for people who had an automobile insurance policy with Liberty Mutual, its related companies, or Safeco in New Mexico.


To qualify, the insurance policy must have been active between October 1, 2010, and March 31, 2022. People must also have made a claim for underinsured motorist benefits under a New Mexico policy during that time. However, the policy must not have included a clear disclosure or exclusion saying the claim value would be reduced by payments from the at-fault driver’s insurer.

Eligible people in the settlement may receive up to $25,000, according to The Sun. However, the final amount may be lower depending on how many people file valid claims and qualify for the payment. If more people submit successful claims, the money may be shared among them, which could reduce the amount each person receives.

Another group of policyholders is also included in the settlement. These are customers who did not receive a clear notice that their policy value could be reduced.Instead of getting the large payment, these policyholders will receive a partial refund of the insurance premiums they paid.

How to claim

People who want to claim money must submit a claim form before April 30, 2026. The claim form can be submitted online or sent as a printed PDF form by mail. The mailed claim form should be sent to the Settlement Administrator handling the case.

The mailing address is: Crutcher v. Liberty Mutual Insurance Co. et al., Settlement Administrator, P.O. Box 5338, Portland, OR 97228-5338, as satated by The Sun. Some class members who qualify for a direct premium refund do not need to submit a claim form, because they may receive payment automatically.

What a class action settlement means

A class action lawsuit is when a large group of people with the same problem sue a company together in court. Usually, one or a few people start the case first, saying the company harmed many customers in the same way. If the court approves the case as a class action, then all people affected become part of the case.

These people are called “class members.” In many cases, companies decide to settle instead of continuing the lawsuit in court. A settlement means the company offers money or compensation to customers to resolve the case. When customers accept the settlement money, they usually give up the right to sue the company again for the same issue.

Even when companies agree to pay money, they usually say they did nothing wrong. Many companies choose to settle because long court cases can take years and cost a lot of money. Class action lawsuits can happen for different reasons, such as pollution, discrimination, or false advertising by companies.

Important deadlines and payment details

If a class member changed their contact information, they must inform the settlement administrator. People applying under the policy value subclass must confirm that the details in their claim are true. Settlement payments can be received as a physical check or through online platforms like PayPal or Venmo.

Anyone who wants to exclude themselves from the automatic payment must do so by April 15. Payments will be sent after the court holds a final approval hearing scheduled for June 2, 2026, as stated by The Sun.

FAQs

Q1. Who can claim money from the Liberty Mutual settlement?

People who had an auto insurance policy with Liberty Mutual Insurance Co. or Safeco Insurance Co. of America in New Mexico between October 1, 2010, and March 31, 2022, and made an underinsured motorist claim may qualify for a payment.

Q2. What is the deadline to file a claim in the Liberty Mutual class action settlement?

Eligible customers must submit a claim form by April 30, 2026, to request settlement money.