A class action alleged that State Farm paid its insureds in Arkansas less than the actual cash value of vehicles it declared a total loss, undervaluing claims.
Eligibility
Arkansas residents who made a first-party State Farm auto insurance claim for a vehicle State Farm determined was a total loss, and whose claim was underpaid relative to actual cash value (class window per settlement notice; claims based on Audatex valuation reports).
Estimated Payout
Pro rata percentage of the Typical Negotiation Adjustment ('Claim Amount') for covered total loss claims; total payments potentially available to the entire class are $15,583,700 (est. average ~$489 per claimant).
Claim Deadline
2026-08-19
Background
The State Farm Arkansas total loss settlement resolves the class action Chadwick v. State Farm Mutual Automobile Ins. Co., pending in the Eastern District of Arkansas, which alleged that State Farm paid its Arkansas insureds less than the actual cash value of vehicles declared total losses. State Farm agreed to make total payments of up to $15,583,700 available to the class without admitting wrongdoing. Class members who submit a valid and timely claim form by August 19, 2026 are eligible for a pro rata percentage of the Typical Negotiation Adjustment for their covered total loss claim. The court-authorized settlement website is StateFarmARTotalLossLitigation.com, and no settlement benefits will be paid unless the court approves the settlement.