State Farm $1.2M Total Loss Fees Class Action Settlement

Alabama policyholders insured by State Farm who submitted a covered first-party private passenger auto physical damage claim between Nov. 7, 2018, and Feb. 10, 2026, that resulted in a total loss payment that did not include full purchasing fees may be eligible to submit a claim for $20.50 from a class action settlement.

State Farm Mutual Automobile Insurance Co. agreed to pay more than $1.2 million to settle a class action lawsuit claiming it failed to pay full purchasing fees on certain Alabama total loss auto insurance claims, potentially breaching its insurance policies. Purchasing fees include state and county sales tax, ad valorem taxes and valorem refund credit fees and license, tag and/or school fees.

Who can file a claim for a State Farm payout?

Class members must meet the following criteria:

• They are or were an Alabama policyholder or insured under a State Farm insurance policy who submitted a covered first-party private passenger auto physical damage claim.
• They made the claim between Nov. 7, 2018, and Feb. 10, 2026.
• The claim resulted in a total loss payment from State Farm that did not include full purchasing fees.

How much are settlement payments?

Class members can submit a claim to receive a cash payment of $20.50.

How to claim a class action rebate

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

Settlement administrator's mailing address: Dortch v. State Farm, c/o Kroll Settlement Administration LLC, P.O. Box 5324, New York, NY 10150-5324

Class members must submit claims online or postmark them by July 15, 2026.

Required claim information

All claims require the class member's State Farm claim ID, the date of loss and the class member ID from the settlement notice the class member received. Class members can look up their class member ID on the settlement website using their State Farm claim number and policy number.

Payout options

• Paper check mailed to the address provided

State Farm settlement fund breakdown

The settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys' fees and costs: Up to $261,200
• Service award to class representative: Up to $5,000
• Payments to approved claimants: $1,209,295

Important dates

• Deadline to request exclusion: May 15, 2026
• Final approval hearing: June 15, 2026
• Deadline to file a claim: July 15, 2026

When is the State Farm Alabama total loss fees settlement payout date?

The settlement administrator will issue payments to approved claimants approximately 120 days after the court grants final approval of the settlement.

Why did this class action settlement happen?

This class action lawsuit alleged State Farm failed to pay full purchasing fees on certain total loss auto claims in Alabama, which may have breached the terms of its insurance policies.

State Farm denies the allegations but agreed to settle the case to avoid the expense and risk of further litigation and a possible trial.

Sources

1. Class notice
2. Settlement website FAQ page
3. Claim form