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AAA class action lawsuit is currently open:
Those who meet eligibility criteria should apply before the deadline April 27, 2026. AAA allegedly sold motorist insurance coverage without clearly warning it could be reduced or denied, making benefits misleading or effectively worthless.
Open Class Actions > AAA Class Action
AAA Class Action Lawsuit
A class action lawsuit has been filed against AAA due to allegedly misleading UM/UIM insurance coverage and failure to clearly disclose benefit limitations. In the AAA Motorist Insurance class action case, plaintiff Joshua Smith filed suit in May 2022 in the United States District Court for the District of New Mexico (Case No. 1:22-cv-00447-WJ-JMR), claiming AAA sold coverage that could be reduced or denied through a “Schmick offset.”
The AAA Motorist Insurance lawsuit details center on allegations of breach of contract, negligent misrepresentation, unjust enrichment, and violations of New Mexico consumer protection laws. The complaint argued that policyholders were not adequately informed that UIM benefits might effectively be unavailable if the at-fault driver carried minimum insurance.
After litigation and mediation, the case reached a settlement in November 2025—about 3.5 years after filing—with AAA agreeing to a $4.15 million fund. The AAA Motorist Insurance legal claims were led by attorneys including Kedar Bhasker, Corbin Hildebrandt, Geoffrey Romero, and Andrea Harris, resolving claims for affected policyholders between 2010 and 2022.
The AAA Motorist Insurance lawsuit details center on allegations of breach of contract, negligent misrepresentation, unjust enrichment, and violations of New Mexico consumer protection laws. The complaint argued that policyholders were not adequately informed that UIM benefits might effectively be unavailable if the at-fault driver carried minimum insurance.
After litigation and mediation, the case reached a settlement in November 2025—about 3.5 years after filing—with AAA agreeing to a $4.15 million fund. The AAA Motorist Insurance legal claims were led by attorneys including Kedar Bhasker, Corbin Hildebrandt, Geoffrey Romero, and Andrea Harris, resolving claims for affected policyholders between 2010 and 2022.
Lawsuit Name
Joshua Smith v. Interinsurance Exchange of the Automobile Club (AAA)
Court
United States District Court for the District of New Mexico
Case Number
1:22-cv-00447-WJ-JMR
Judge
Judge William P. Johnson (District Judge) and Judge Jerry H. Ritter (Magistrate Judge)
Plaintiff
Joshua Smith
Defendant
Interinsurance Exchange of the Automobile Club (AAA)
Key Allegation
AAA allegedly sold misleading UIM coverage without clearly disclosing benefit reductions from offsets.
AAA Class Action Settlement - $4,150,000
The latest AAA Motorist Insurance settlement update confirms a $4,150,000 fund resolving claims that AAA failed to clearly disclose how UIM benefits could be reduced or denied. The AAA Motorist Insurance lawsuit settlement amount is split between two groups, with a capped pool of $1.4M specifically reserved for offset claims—a unique structure that prioritizes those directly impacted.
Under AAA Motorist Insurance settlement eligibility, you may qualify if:
- You had a UIM claim reduced after an accident between 2010–2022
- You paid premiums for UM/UIM coverage during that period
If your claim was reduced, you can receive up to $25,000 (subject to pro rata reduction). If not, you’ll receive an automatic refund based on how much you paid in premiums, with no claim required.
A standout detail: claims are validated against AAA’s internal data, limiting fraud but also meaning only recorded claims qualify—appeals require a $50 fee, refunded if successful.
Deadline for filing a claim: April 27, 2026
Motorist Insurance Class Action Payout: $10 - $25,000+
The AAA Motorist Insurance settlement amount per person depends on your situation. If you’re wondering how much will I get from AAA Motorist Insurance lawsuit, payouts fall into two groups:
- Offset claimants: up to $25,000, but may be reduced depending on how many valid claims are filed against the $1.4M pool
- Premium refund group: typically ~$10–$200+, based on how much you paid and how many people qualify
Estimated payout range: Claimants in this settlement may receive between $10 – $25,000 based on claim type, number of claims, and total premiums paid.
AAA Motorist Insurance settlement payout date: Most people can expect payments in Q4 2026, with some extending into early 2027 depending on processing and appeals.
- Offset claimants: up to $25,000, but may be reduced depending on how many valid claims are filed against the $1.4M pool
- Premium refund group: typically ~$10–$200+, based on how much you paid and how many people qualify
Estimated payout range: Claimants in this settlement may receive between $10 – $25,000 based on claim type, number of claims, and total premiums paid.
AAA Motorist Insurance settlement payout date: Most people can expect payments in Q4 2026, with some extending into early 2027 depending on processing and appeals.
AAA Motorist Insurance Payout Timeline
Stage
What Happens
Estimated Timing
Final Fairness Hearing
Court reviews and approves settlement
Late May – June 2026
Final Judgment & Appeal Window
Approval entered + time for appeals
June – July 2026
Effective Date
Settlement becomes final after appeals period
July – August 2026
Offset Claim Payments
Up to $25,000 payments sent to approved claimants
August – September 2026
Premium Refund Payments
Pro rata refunds distributed automatically
October 2026 – February 2027
Misleading Coverage Class Action Payouts
$5,000
$10,000
$20,000
Average Payouts
Motorist Insurance Class Action Eligibility
Understanding AAA Motorist Insurance class action eligibility is straightforward because the claim process relies on AAA’s internal records—not detailed documentation from you.
What AAA Motorist Insurance class action claimants are actually asked:
- Your name, address, and contact details
- The date of your accident (date of loss)
- A certification that you submitted a UIM claim that was reduced (“offset”) during the class period
What AAA Motorist Insurance class action claimants are actually asked:
- Your name, address, and contact details
- The date of your accident (date of loss)
- A certification that you submitted a UIM claim that was reduced (“offset”) during the class period
Requirement
Why It Matters
UIM claim submitted
Confirms eligibility for compensation
Claim reduced by offset
Core issue in the lawsuit
Date between 2010–2022
Must fall within the class period
You had an AAA auto insurance policy in New Mexico
The policy included UM/UIM (uninsured/underinsured motorist) coverage
You paid premiums or had a claim between January 1, 2010 and May 4, 2022
Motorist Insurance Class Action Claim Form
The Motorist Insurance class action claim form is quick and simple with Chimo. Some settlements take longer due to court approval, appeals, or fraud checks, but Chimo streamlines the process so you can get your share fast. Here's how to file a claim against Motorist Insurance:
1
Check eligibility now by answering a few quick questions
2
Tell us where you want your check sent
3
Submit your form before April 27, 2026
You'll receive confirmation and updates on your claim status.
FAQ
It’s a New Mexico rule requiring insurers to subtract the at-fault driver’s coverage from your UIM benefits.
No—AAA’s internal records are used to verify claims, so most users don’t need to upload proof.
The $1.4M pool for offset claims is split, so payouts may be reduced proportionally.
No—you receive one or the other, not both.
You can appeal the decision, but it requires a $50 fee (refunded if you win).
No—premium refunds are automatic for eligible policyholders.
After you submit your claim, the settlement administrator checks it against AAA’s business records to confirm that you made a qualifying UIM claim during the class period. The form also requires you to certify under penalty of perjury that the information is true and that your claim was reduced by the at-fault driver’s insurance payment, which helps screen out inaccurate or false submissions.
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