State Farm class action alleges insurer underpaid total loss claims

State Farm class action lawsuit overview:

• Who: Plaintiff Craig Brewer filed a class action lawsuit against State Farm Mutual Automobile Insurance Co.
• Why: Brewer claims State Farm failed to pay the full and correct amount for vehicle total loss claims.
• Where: The class action lawsuit was filed in North Carolina federal court.

A new class action lawsuit alleges State Farm Mutual Automobile Insurance Co. failed to pay the full and correct amount for vehicle total loss claims.

Plaintiff Craig Brewer argues State Farm has a “systematic and uniform” practice of reducing the retail cost of comparable vehicles used in the calculation of total loss claim payments.

Brewer claims the practice violates North Carolina’s motor vehicle total loss regulation and results in State Farm avoiding paying the full and correct amount for vehicle total loss claims.

“When valuing vehicle total loss claims, it is improper for insurance companies to undervalue and underpay the claims by manipulating the data used to value the vehicles,” the State Farm class action lawsuit says.

State Farm used CCC One Reports to underpay total loss claims, class action alleges

Brewer wants to represent a class of North Carolina State Farm automobile policyholders who had their total loss claims calculated and paid by State Farm using a CCC One Report where the retail cost of comparable vehicles was reduced to arrive at a pre-accident value.

The plaintiff claims State Farm is guilty of breach of contract and violating North Carolina’s Unfair Trade Practices Act.

Brewer demands a jury trial and requests declaratory relief and an award of compensatory damages and other appropriate remedies for himself and all class members.

Earlier this year, a California federal judge certified a class of nearly 200,000 homeowners who allege State Farm underpaid property insurance claims in violation of state insurance codes. The class action lawsuit claims State Farm unlawfully deducted sales tax when calculating the actual cash value of homeowners’ personal property.

Have you ever had a total loss claim calculated by State Farm? Let us know in the comments.

The plaintiff is represented by Aaron C. Hemmings and Kelly A. Stevens of Hemmings & Stevens PLLC.

The State Farm class action lawsuit is Brewer v. State Farm Mutual Automobile Insurance Company, Case No. 1:25-cv-00904, in the U.S. District Court for the Middle District of North Carolina.

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