Travelers $1M Settlement for Denied UM/UIM Claims

If you were insured under a Pennsylvania insurance policy issued or renewed by Travelers and had uninsured motorist (UM) and/or underinsured motorist (UIM) coverage, you may be eligible to claim compensation from a class action settlement.

Travelers Property Casualty Company of America and Travelers Indemnity Company have agreed to pay $1,000,000 to settle a class action lawsuit for allegedly denying UM/UIM claims based on household or regular use exclusions.

Who can claim a payout?

The class members include individuals who:

• Sustained injury in a motor vehicle accident while occupying or operating a household vehicle owned by the named insured or a resident relative.
• Were the named insured or the insured under a Pennsylvania insurance policy issued by Travelers providing UM/UIM coverage.
• Made a claim under a policy issued by Travelers for recovery of UM/UIM benefits.
• Had their claim for recovery of UM/UIM benefits denied by Travelers due to a household or regular use exclusion.

There are two classes:

• Class One: Those injured while occupying or operating a household vehicle.
• Class Two: Those injured while operating a non-household vehicle made available for regular use.

Who is excluded from the class?

Individuals whose claims fall within the parameters of Erie Ins. Exch. v. Mione, where the court held that household vehicle exclusions precluding UIM coverage were enforceable, are excluded.

How much are the Travelers Settlement payouts?

The amount class members can receive depends on their class:

• Class One: Up to 90% of the claim's full value, subject to policy limits.
• Class Two: 25% of the claim's full value, subject to policy limits.

For example, if a Class One member's claim is valued at $10,000, they may receive up to $9,000, depending on policy limits.

How to claim an award

To claim an award, class members must complete and submit a claim form. You can file a claim online or download the PDF claim form and mail it to the settlement administrator.

Settlement Administrator's mailing address: Frazer Settlement Administrator, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103

Claimants need to provide documentation such as medical records and employment information to support their claim.

Claim instructions

1. Visit the settlement website and download the claim form.
2. Complete the form with your personal information and details of your claim.
3. Attach any required documentation, such as medical records.
4. Submit the form online or mail it to the settlement administrator.

How are payout being made?

Payments will be made by check to eligible class members.

$1 Million settlement fund

The settlement fund of $1,000,000 will cover the following:

• Attorneys' fees: $1,000,000
• Service awards to class representatives: $5,000 each
• Settlement administration costs: TBD
• Payments to class members: Based on the claim's value and class tier

Important dates

• Fairness Hearing: August 20, 2025
• Deadline to File a Claim: September 20, 2025

When is the Travelers Settlement payout date?

Settlement awards will be paid after the final approval of the settlement, which is expected to occur shortly after the Fairness Hearing on August 20, 2025.

Why is there a class action settlement?

The lawsuit was filed because Travelers allegedly denied UM/UIM claims based on household or regular use exclusions, which plaintiffs argued were improper.