Farmers Insurance $1.95M Class Action Settlement

If you purchased or renewed an auto or business insurance policy in Minnesota from Illinois Farmers Insurance Company, Farmers Insurance Exchange, Truck Insurance Exchange, or Mid-Century Insurance Company that provided for medical expense benefits under Minnesota’s No-Fault Automobile Insurance Act between January 17, 2013, and September 13, 2023, you may be eligible to submit a claim for a cash payment from a class action settlement.

Illinois Farmers Insurance Company and related companies have agreed to pay $1.95 million to settle a class action lawsuit for alleged violations of Minnesota consumer protection laws and insurance policy terms. The plaintiffs claim that Farmers entered into undisclosed agreements with certain healthcare providers, which may have limited policyholders’ ability to select a provider of their choice when using their medical expense benefits.

Who is eligible for a Farmers settlement payout?

You may be a class member if you meet the following criteria:

• You purchased or renewed an auto insurance policy in Minnesota from one of the these companies between January 17, 2013, and September 13, 2023:
• Illinois Farmers Insurance Company
• Farmers Insurance Exchange
• Truck Insurance Exchange
• Mid-Century Insurance Company
• The policy must have included medical expense benefits under Minnesota’s No-Fault Act.

There are two nearly identical defined classes:

• Damages Class: Includes all persons or entities who purchased an insurance policy in Minnesota from any of the Defendant Insurers during the class period that provided for medical expense benefits under Minnesota’s No-Fault Act.
• Injunctive Class: Includes all persons or entities that purchased an insurance policy in Minnesota from any of the Defendant Insurers during the class period that provided for medical expense benefits under Minnesota’s No-Fault Act, and who still maintain that policy.

How much will the class action payment be?

Pro Rata Cash Payment: Payment amount will be determined by the amount paid for insurance coverage by each claimant and the number of valid claims submitted.

Injunctive Relief: Defendants will disclosed to the Minnesota Department of Commerce that they have No-Bill Agreements with certain healthcare providers and may enter into additional No-Bill Agreements in the future.

How to claim a class action settlement payout

To receive a class action rebate, you must submit a claim form by the deadline of June 20, 2025. Class members can file a claim online or print a PDF claim form to fill out and mail to the settlement administrator.

Settlement Administrator's mailing address: Farmers Insurance Minnesota No-Fault Class Action, c/o Analytics Consulting LLC, PO Box 2007, Chanhassen, MN 55317-2007

Required claim information

Claim Number and PIN required to submit an online claim form. No supporting documentation is required as Farmers has provided the settlement administrator with Minnesota policyholder information.

Payment methods

• Electronic Payment
• Paper Check mailed to address provided

$1.95 Million Farmers settlement fund

The settlement fund of $1,950,000 will cover:

• Settlement administration costs: Up to $670,200
• Attorneys' fees: Up to $650,000
• Attorneys' expenses: To be determined
• Service awards to class representatives: Up to $5,000 each, no more than a total of $20,000
• Payments to class members with valid claims: Remaining settlement funds

Important dates

• Claim Deadline: June 20, 2025
• Exclusion Deadline: June 20, 2025
• Final Approval Hearing: August 19, 2025 at 10:00 a.m.

When is the Farmers Insurance Co. class action payout date?

The court has scheduled the final fairness hearing on August 19, 2025. Payments to approved claimants will be distributed after the court grants final approval.

Why was there a class action lawsuit and settlement?

The class action lawsuit alleged that Farmers Insurance entered into undisclosed agreements with certain healthcare providers that limited policyholders’ ability to select a medical provider of their choice when using their medical expense benefits. Plaintiffs claimed this violated the Minnesota Consumer Fraud Act, the Minnesota Deceptive Trade Practices Act, and the terms of the insurance policies.

Farmers Insurance denied any wrongdoing or liability, but agreed to a settlement in order to avoid the expense of continued litigation and a trial.

Sources

1. Class Notice
2. Settlement Website FAQ Page