Metropolitan Direct Property and Casualty Insurance Company, now part of Farmers Insurance Group, has settled a New Mexico class action (Vega v. Metropolitan) for $1.2 million over how it disclosed and reduced underinsured motorist coverage. Drivers whose UIM payout was cut by the at-fault driver's insurance can file for up to $25,000, and the claim window closes May 26, 2026. Drivers who simply bought UM/UIM coverage between October 1, 2010 and January 31, 2022 receive an automatic refund check.
A Farmers Insurance Group company has agreed to a $1.2 million class action settlement with New Mexico drivers, and the window to claim a payment worth up to $25,000 closes May 26, 2026. The case centers on how Metropolitan Direct Property and Casualty Insurance Company disclosed and reduced underinsured motorist coverage under New Mexico law.
Coverage of the deadline spiked on May 19, 2026, when The U.S. Sun spotlighted the approaching cutoff. For thousands of New Mexico policyholders, the settlement turns an obscure piece of insurance law into a check, but only if they act before the postmark deadline.
- $1.2 million total fund from a Farmers Insurance Group company, Metropolitan Direct Property and Casualty
- Offset claims pay up to $25,000, and the filing deadline is May 26, 2026 (online or postmarked)
- Premium-refund class members get an automatic check with no form required
- Eligibility runs to New Mexico UM/UIM policies sold October 1, 2010 through January 31, 2022
- A federal judge holds the final approval hearing July 1, 2026, so payouts are not locked in yet
What the $1.2 Million Settlement Covers
The lawsuit, captioned Vega v. Metropolitan Direct Property and Casualty Insurance Company, sits in the U.S. District Court for the District of New Mexico under Case No. 1:22-CV-616-JB-SCY. Plaintiffs allege Metropolitan violated New Mexico law by misrepresenting underinsured motorist coverage or hiding its limits, then shrinking UIM payouts by the amount an at-fault driver's liability insurer had already paid.
Metropolitan denies wrongdoing and admitted no liability when it agreed to the $1.2 million fund, according to the official settlement notice. The complaint stacked ten claims against the insurer, among them breach of contract, negligent misrepresentation, and violations of New Mexico's Unfair Insurance Practices Act.
Epiq, the court-appointed settlement administrator, is verifying claims against Metropolitan's records and mailing checks. Class counsel from three Albuquerque firms will ask the court for fees of up to 33 1/3% of the fund plus costs, with roughly $110,000 more allotted to administration, which trims what actually reaches drivers to well under $800,000.
| Action | What It Means | Deadline |
|---|---|---|
| Submit a claim (offset) | File for up to $25,000 if your UIM payout was offset | May 26, 2026 |
| Do nothing (refund) | Automatic premium-refund check mailed to you | No action needed |
| Opt out | Leave the class to keep your right to sue | April 27, 2026 (passed) |
| Object | Challenge the settlement terms in court | May 11, 2026 (passed) |
| Final approval hearing | Judge decides whether to approve payouts | July 1, 2026 |
Source: Vega v. Metropolitan settlement website (metropolitanuimsettlement.com), administered by Epiq. Dates reflect court-set postmark or online-submission cutoffs; opt-out and objection windows have already closed.
Who Qualifies and How Much You Can Get
The settlement splits eligible New Mexico drivers into two groups, and the payout depends on which one you fall into.
The Offset Subclass (up to $25,000)
Drivers in this group filed a UIM claim between October 1, 2010 and January 31, 2022 that Metropolitan reduced by the at-fault driver's liability payment. They can claim up to $25,000, though the settlement notice warns that figure shrinks pro rata if total claims exceed the money set aside. Filing requires a Metropolitan policy number, a date of loss, and a claim number, submitted online or postmarked by May 26, 2026.
Most offset claimants already received a postcard carrying a unique ID and PIN. Did a notice never arrive even though your UIM payout was cut? Print a claim form from the settlement website's Documents page and mail it to the administrator's P.O. box in Portland, Oregon.
The Premium-Refund Subclass (automatic check)
Anyone who bought a New Mexico auto policy with UM/UIM coverage during the class period, yet never had an offset claim, receives a check without filing anything. The refund returns a slice of the UM/UIM premiums paid, scaled by how many class members qualify and what remains after fees. These payments land far below the $25,000 offset cap because they divide the leftover share of a $1.2 million fund.
The $25,000 option applies only when the at-fault driver carried liability insurance that fell short of your damages. If the other driver had no insurance at all, your claim was an uninsured motorist claim rather than an underinsured one, and it does not qualify for the offset payment. Dig out your old claim paperwork to confirm which type you filed before May 26.
The "Schmick Offset" Behind the Lawsuit
New Mexico follows what courts call gap theory for underinsured motorist coverage, a rule that subtracts the at-fault driver's liability limits from your UIM limits instead of adding the two together. Lawyers and judges label the resulting deduction the Schmick offset, named for a New Mexico Supreme Court decision that endorsed it.
That math creates a trap. A driver carrying the state minimum of $25,000 in UIM coverage who gets hit by someone with $25,000 in liability coverage collects $0 in UIM benefits, because the offset erases the limit entirely. New Mexico's Supreme Court called out this exact problem in Crutcher v. Liberty Mutual, ruling that minimum-limit UIM coverage is "illusory" and ordering insurers to spell out the limitation in plain language a layperson can understand.
The plaintiffs argue Metropolitan never delivered that clear warning. Applied across thousands of New Mexico policies sold between 2010 and 2022, that disclosure gap is what the $1.2 million is meant to repair.
Why Underinsured Coverage Matters in Every State
New Mexico is a risky place to drive thin on coverage. Roughly 24.1% of the state's drivers were uninsured in 2023, the second-highest rate in the country behind Mississippi's 28.2%, according to the Insurance Research Council. The national figure sat at 15.4%, or about one in seven drivers.
New Mexico ranks among the handful of states where more than 20% of drivers skip coverage entirely, which raises the odds that any given crash involves an at-fault driver who cannot pay. That is precisely where uninsured and underinsured motorist coverage earns its keep: UM pays when the other driver has no insurance, while UIM steps in when the other driver has too little. The Insurance Research Council estimated in 2025 that roughly one in three U.S. drivers is now uninsured or underinsured.
Stacking can soften the offset blow in states that permit it. New Mexico lets drivers stack UM/UIM limits across multiple vehicles on one policy, which lifts the ceiling on what a household can recover after a serious wreck. Buyers who carry more than the $25,000 floor get the most protection from that option.
What New Mexico Drivers Should Do Now
Check Your Mail and Email
Hunt for an Epiq postcard carrying a unique ID and PIN. That notice means you qualify for the up-to-$25,000 offset payment, not just the smaller automatic refund.
File Before May 26
Submit your claim online at metropolitanuimsettlement.com or postmark a paper form, using your Metropolitan policy number, date of loss, and claim number.
Confirm Your Mailing Address
Call the administrator at 1-877-239-5487 if you have moved since your policy lapsed, so a refund check does not get mailed to an old address.
Review Your Own UM/UIM Limits
Pull your current declarations page and verify you carry more than the $25,000 state minimum, since minimum-limit UIM can pay nothing under the offset rule.
What Happens Next
The settlement is not final. A federal judge will hold the final approval hearing on July 1, 2026, and checks go out only after the court signs off and any appeals clear, the administrator says. Drivers who already filed, or who qualify for an automatic refund, should expect a wait of weeks to months past that date.
For everyone else, this case is a nudge to read the fine print. The same offset rule that drove the lawsuit still governs UIM claims across New Mexico, so a policy bought today carries the identical limitation that minimum-limit buyers learned about the hard way.
Frequently Asked Questions
Two groups of New Mexico drivers qualify. The first had a UIM claim reduced or offset by the at-fault driver's liability payment between October 1, 2010 and January 31, 2022. The second simply bought a New Mexico auto policy with UM/UIM coverage during that same period. The first group files for up to $25,000; the second gets an automatic refund check.
Offset claimants can receive up to $25,000, though that amount drops proportionally if claims exceed the funds set aside. Premium-refund class members receive a smaller automatic check based on the UM/UIM premiums they paid and the number of claimants splitting the $1.2 million fund after fees.
Claim forms must be submitted online or postmarked by May 26, 2026. The opt-out deadline (April 27, 2026) and the objection deadline (May 11, 2026) have already passed. The court holds its final approval hearing on July 1, 2026.
If you only bought UM/UIM coverage during the class period and never had an offset claim, no action is required. A check will be mailed automatically. Make sure the settlement administrator has your current address by calling 1-877-239-5487 if you have moved.
In New Mexico, an insurer can reduce your underinsured motorist payout by the amount the at-fault driver's liability insurance already paid, a rule courts call the Schmick offset. Because of it, a driver with only the $25,000 state minimum in UIM coverage can recover nothing when hit by another minimum-limit driver.
- Vega v. Metropolitan Settlement Website (Epiq) - Terms, Class, and Deadlines
- Vega v. Metropolitan - Frequently Asked Questions and Settlement Terms
- The U.S. Sun - Drivers Can Get $25,000 Piece of $1.2 Million Insurance Settlement
- Insurance Information Institute - Facts + Statistics: Uninsured Motorists
- Agency Checklists - One in Three U.S. Drivers Are Uninsured or Underinsured (IRC Study)
- Lewis Brisbois - Crutcher v. Liberty Mutual Ins. Co. (New Mexico) and Illusory UIM Coverage
- The Zebra - New Mexico Car Insurance Laws and Minimum Requirements (2026)