State Farm $20.93M Vehicle Insurance Class Action Settlement

Individuals who were insured under a New Mexico insurance policy issued by State Farm that included U Coverage between Jan. 1, 2010, and Dec. 31, 2021, may qualify to submit a claim for a cash payment from a class action settlement.

State Farm Mutual Automobile Insurance Co., State Farm Fire and Casualty Co., and State Farm General Insurance Co. have agreed to pay as much as $20,925,000 to settle a class action lawsuit. The plaintiff claimed that State Farm violated New Mexico law in connection with its sale of the underinsured motorist (UIM) component of Uninsured and Unknown Motorist Coverage (U Coverage).

Who can file a claim for a State Farm payout?

Class members must meet the following criteria:

• You were insured under a New Mexico insurance policy issued by State Farm with a coverage period between Jan. 1, 2010, and Dec. 31, 2021.
• The policy included U Coverage, also known as uninsured and unknown motorist coverage.

The settlement class also includes heirs, executors, administrators, successors, and assigns of eligible policyholders.

Who is excluded from the class?

The following individuals are excluded from the settlement:

• Anyone who filed a separate lawsuit against State Farm before the notice date regarding reduction or denial of benefits based on a Schmick Offset.
• Anyone who settled such a claim and signed a final release before the notice date.

How much will settlement payments be?

• Minium limits: Class members who purchased minimum limits U Coverage purchased between 2010 and 2021 can submit to receive a pro rata cash payment of up to 21% of premiums paid.
• Non-minimum limits: Class members who purchased non-minimum limits U Coverage between 2010 and 2021 can submit to receive a pro rata cash payment of up to 13% of premiums paid.

How to claim a class action rebate

To receive a settlement payment class members can file a claim online or download and print the PDF claim form to mail to the settlement administrator.

Settlement administrator's mailing address: Schwartz v. State Farm Settlement Administrator, P.O. Box 4359, Portland, OR 97208-4359

The claim deadline is July 2, 2026.

Required claim information

• Unique ID and PIN required to submit a claim online.

Payout options

• Paper check mailed to the address provided

State Farm settlement fund breakdown

The $20,925,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys' fees and expenses: Up to $4,250,000
• Service award to named plaintiff: $25,000
• Payments to approved claimants: Up to $20,925,000

Important dates

• Deadline to opt out: May 18, 2026
• Final fairness hearing: June 8, 2026
• Deadline to file a claim: July 2, 2026

When is the State Farm New Mexico U Coverage settlement payout date?

Payments will be issued to approved claimants approximately 90 days after the court grants final approval of the settlement or claim processing is completed, whichever is later.

Why did this class action settlement happen?

The class action lawsuit alleges that State Farm failed to properly explain offset procedures required under New Mexico law when selling UIM coverage as part of U Coverage. The plaintiff brought claims including negligence, misrepresentation, violations of New Mexico’s Unfair Trade Practices Act and Unfair Insurance Practices Act, breach of good faith, and more.

State Farm denies the allegations, but agreed to settle to avoid the uncertainty and expense of ongoing litigation and a possible trial.

Sources

1. Official class notice
2. Official settlement website FAQ page
3. Settlement agreement