$25,000 payout alert: Drivers could claim cash from $4.15 million settlement — deadline April 29
Summary
AAA has reached a $4.15 million settlement regarding allegations that it reduced underinsured motorist claim payouts by offsetting compensation from at-fault drivers. The settlement applies to drivers who held qualifying AAA policies or submitted affected claims between January 1, 2010, and May 4, 2022. Eligible drivers may receive up to $25,000, depending on their claim history and eligibility status.
The dispute centers around AAA’s practice of offsetting payments, which allegedly resulted in lower settlements for policyholders, particularly in New Mexico. While AAA has not admitted wrongdoing, the settlement resolves legal disputes and avoids further litigation.
Drivers must file their claims by April 29, and payouts are expected to be distributed after May 13, following final court approval. The settlement also includes potential refunds for those who purchased uninsured or underinsured motorist coverage during the specified period. Affected drivers are encouraged to review their insurance records and submit a claim form to the settlement administrator.
(Source:The Economic Times)