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Arkansas State Farm Mutual Automobile Insurance Co. customers whose vehicle the company declared a total loss between Nov. 29, 2016, and Oct. 18, 2021, may be eligible to claim an average payment of $489 from a class action settlement.
State Farm Mutual Automobile Insurance Co. agreed to a settlement resolving allegations it underpaid Arkansas policyholders on total loss auto insurance claims by applying a typical negotiation adjustment to the value of their vehicles.
Who can file a claim?
Class members must meet all of the following criteria:
- They made a first-party claim on a State Farm Mutual Automobile Insurance Co. policy issued to an Arkansas resident.
- State Farm declared their vehicle a total loss between Nov. 29, 2016, and Oct. 18, 2021.
- State farm based the claim payment on a report from Audatex that applied a typical negotiation adjustment to at least one comparable vehicle.
State Farm identified most class members through its claims data and sent them a notice by email or postcard with instructions and a unique ID and web registration code.
How much can class members get?
Eligible class members who submit a valid and timely claim form can receive a payment equal to 68% of the typical negotiation adjustment amount associated with their claim as determined by State Farm’s records. The total available fund for class members is $15,583,700, and the estimated average payment is $489.
Here’s how the calculation works:
- Payment = TNA amount x 0.68
How to claim a class action payment
Class members can file a claim online or download and print the PDF claim form, complete it and mail it to the settlement administrator.
Settlement administrator's mailing address: Chadwick v. State Farm Mutual Auto Insurance Co., Settlement Administrator - 9148, PO Box 2798, Faribault, MN 55021-9798
The claim deadline is Aug. 19, 2026.
Required information
To file an online claim, class members must provide the unique ID and web registration code from the settlement notice they received.
Payout options
Unless the class member requests payment via an electronic payment method, the settlement administrator will send physical checks to the address class members provide on the claim form.
Settlement fund breakdown
The settlement fund covers:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $4,675,110
- Attorneys' expenses: Up to $850,000
- Service award to class representative: $15,000
- Payments to class members: $15,583,700 (not affected by above costs)
Important dates
- Deadline to request exclusion: June 25, 2026
- Final approval hearing: July 15, 2026
- Deadline to file a claim: Aug. 19, 2026
When is the Chadwick v. State Farm Mutual Automobile Insurance Co. payout date?
- Electronic payment: The settlement administrator will issue electronic payments no later than 45 days after the court resolves any appeals and grants final approval to the settlement or when it receives the settlement payment from the defendant, whichever is later.
- Physical check: The settlement administrator will issue physical checks no later than 60 days after the court resolves any appeals and grants final approval to the settlement
Why did this class action settlement happen?
The class action lawsuit claimed State Farm paid Arkansas insureds less than the actual cash value for total loss vehicles by applying a typical negotiation adjustment to the value of comparable vehicles. The plaintiff alleged this practice breached State Farm’s insurance contracts and the implied covenant of good faith and fair dealing.
State Farm denies all allegations but agreed to settle to avoid further litigation.
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