State Farm class action settlement overview:
- Who: A federal judge has granted preliminary approval to a class action settlement between State Farm and a class of policyholders.
- Why: State Farm agreed to the settlement to resolve claims it underpaid policyholders for total loss vehicle claims.
- Where: The State Farm class action settlement was filed in Arkansas federal court.
A federal judge has granted preliminary approval to a class action settlement resolving claims State Farm underpaid policyholders for total loss vehicle claims.
Plaintiff Rose Chadwick filed the class action lawsuit against State Farm in November 2021, alleging the insurance company underpaid policyholders who filed claims for total loss vehicles.
The plaintiff claimed State Farm systematically underpaid insureds for total loss claims, in breach of its insurance contracts and the implied covenant of good faith and fair dealing. Chadwick alleges the company did so by basing compensation on valuation reports that applied “typical negotiation adjustments” (TNA), which, she contends, are improper.
State Farm denies the allegations but agreed to settle the total loss claims class action lawsuit to avoid the burden, expense and uncertainty of ongoing litigation.
State Farm settlement provides $15.5M for total loss claims
Under the terms of the State Farm settlement class action, the insurance company will pay $15,583,700 to resolve the claims.
Class members are eligible for a payment of 68% of estimated TNA amount, as determined from State Farm’s records. The estimated average recovery is about $489 per claim.
Class counsel will seek attorneys’ fees of up to 30% of the settlement fund, or $4,675,110. They will also request reimbursement of $850,000 in litigation costs and a $15,000 service award for Chadwick as the class representative.
These payments will not reduce the amount of money available to settlement class members as they will be paid separately by State Farm.
The State Farm class action settlement includes all persons who made a first-party claim on a policy issued to an Arkansas resident between Nov. 29, 2016, and Oct. 18, 2021. Eligible participants must have had their vehicle declared a total loss with a payout based on an Audatex report that applied a typical negotiation adjustment to at least one comparable vehicle.
The deadline to opt out of the State Farm class action settlement is June 25, and the deadline to object is June 15. The final approval hearing is scheduled for July 15.
Although the settlement is still to be approved, the proposed deadline for submitting a claim is Aug. 19, 2026.
Another class action lawsuit over total loss claims was filed against State Farm late last year in North Carolina federal court.
What do you think about the State Farm total loss claims class action settlement? Tell us your thoughts in the comments.
The plaintiff is represented by Carney Bates & Pulliam PLLC, Normand PLLC, Jacobson Phillips PLLC and Bailey Glasser LLP.
The State Farm class action lawsuit is Chadwick v. State Farm Mutual Automobile Insurance Co., Case No. 4:21-cv-01161, in the U.S. District Court for the Eastern District of Arkansas.
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76 thoughts onState Farm settlement over totaled car payouts receives preliminary approval
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My car was totaled by State Farm in 2021. I bought it back & continued with full coverage with them. Other insurance companies said it was a salvaged title & they couldn’t write coverage on it
State Farm is a terrible company. Like another comment said. They want your increasing premiums but don’t want to pay out fairly. They cancelled my home owners policy (more to this story but not enough time to write everything), then about a 6-months to a year later we’re soliciting my business. They are crazy and have a lot of nerve. I would say more class action lawsuit should be fine against them. That’s my thought.
I totally agree. Here in Louisiana they have ROBBED people for years.
Most unfortunately they buy off the unscrupulous judges here and so are allowed to continue these horrific crimes. I know someone else who had a total loss vehicle that was 2 years old and State Farm paid them 11 dollars and change. Literally.
This person was in dire straights because she then had no way to get to and from work. And God knows
let’s not forget the Thousands of people who had homeowners insurance with when Hurricane Katrina hit here Hard in 2005. State Farm denied all of their claims. Even after going to court where they paid their way out of any liability they then
pulled out of most of the State or continued to sell only vehicle insurance. So we can say the stole the money and ran.
My car was totaled Oct 2017. I still had to come out my pocket another almost $3000 bc they didn’t pay the whole thing off.
Car totaled in aug 2022 in texas. Been insured with state farm years.
I had my truck totaled out by State Farm. On July 27 2025 a young driver turned in front of me, illegal. He was cited for causing the accident. State Farm was his Insurance carrier. I did not receive the fair value for my loss of my truck or the loss of wages that my insurance did not cover.
I wonder it you can file a complaint with your state insurance commissioner.its definitely worth a look.
I had my truck totaled out by State Farm. July 27, 2025 a young driver turned into me. front at a stop light He was cited for causing the accident. State Farm was his Insurance carrier. I did not receive the fair value for my loss. Also they would not cover my time lost at work that my insurance would not cover.
Here in Georgia, State Farm just totalled our older truck due to a tractor trailer side swiping it and ripping off the front grill and bumper. We contested the value and got another $1000 but they insisted on totalling it. We had put $3000 into it in the past year. Including $12000 im new sensors 3 months before. I’m sure they make money off of this scam. Im still calling the newer car we bought the “truck”.
It’s a real scam, they charge all that money and when time for them to pay you they come up with every excuse they can think of. And then want to know where you’re getting repairs before they cut the check (which shouldn’t be none of their business). It’s a real USA scam.
In February 2019, I was rearended on Hwy 24 during rush traffic and pushed into on coming traffic. Thank you Angel’s for protecting my passengers, their dog & me but my 2005 Honda Civic EX with HFP was totaled & the state patrol did not let me finish my side of the incident. When I finally received the police report months later, there were numerous discrepancies including where the officer’s drawing of where the damage was. I contested with the state patrol & never received a response and State Farm cited with the at-fault party and 8-months later i received their check that was 50% less than the value with my loss of wages. State Farm low balled an offer in July 2019 which I declined and 3 months later they still low balled me at which point I needed to buy a replacement car considering I had no car, no income for 8-months!
I had my truck totaled out by State Farm. On April 3, 2025 a young driver turned in front of me, illegal. He was cited for causing the accident. State Farm was his Insurance carrier. I did not receive the fair value for my loss.
On January 15, 2023 i was in an accident that was not my fault. I was hit by a girl driving her father’s car. He was insured by State Farm at the time and I was driving my sister’s car 🚗 a beautiful little red vw jetta. My car was T-boned and totalled in my hip at the driver’s door jam. My car was extremely totalled. It had recent work done on it which we had receipts for. 4 new tires the whole yards. State farm low balled us also. They didn’t even pay off the car. My sister was forced to still have payments and no car for 12-15 months after the payoff. Then my State farm bills started increasing they were saying we weren’t paying our bill and every month they wanted what looked like double payments. I said that’s enough and canceled everything with State farm. Them the person injury claims for my self was limited to the insurance level and the lawyer wouldn’t sue personally for more for me. And it took them dragging my less than 2 yr old granddaughter and 50+ yr old friend who was my passenger 3 yrs for a punny settlement as well. A traumatized child is only worth $800 , when the three of us were nearly killed by this driver. I was in a nursing facility for 5 months after being released from a major hos pool ital in Cleveland. It’s just sad what insurance companies can get away with. It’s 3 yrs later I am still severely damaged and have no transportation. Plus the
LEXUS NEXUS REPORT
Has me as being not at fault, and being at fault for that same accident when the BMV clearly States it was the other driver who was at fault. Just at note to those of you out there. State farm kept that as my record even after I disputed the accident being against me. They said they rework it on the next policy. What about all the overcharged I’ve been getting since the accident itself that I did not cause, because the insurance companies want their $$$ for you any way they can. Just saying. Check your reports. Blessed I’m alive after the accident and life is a struggle 🙏 💯 but only God saved us that day.