State Farm class action settlements in 2026 span property, auto, and life insurance claims across at least half a dozen states, with some still accepting claim filings, others already paid out, and several matters still in active litigation or regulatory review. Whether you qualify depends on your state, the type of policy, and when your claim was paid. Below is what is open, what has closed, and what is still being fought.
Settlements Still Open for Claims
Alabama Total Loss Purchasing Fees (Dortch)
If you had an Alabama auto policy and State Farm paid you for a totaled vehicle between November 7, 2018, and February 10, 2026, you may be owed $20.50 under Dortch v. State Farm Mutual Automobile Insurance Company (Case No. 03-CV-2024-901729.00) in the Circuit Court of Montgomery County. The suit alleged State Farm left out full “purchasing fees” from total loss payments, including Alabama state sales tax (2%), county sales tax, ad valorem taxes and related credit fees, and state, county, and city license, tag, and school fees.1Dortch v. State Farm Settlement. Settlement Notice
The claim deadline is July 15, 2026. The final approval hearing is set for June 15, 2026.2Top Class Actions. Alabama State Farm Total Loss Claims Class Action Settlement
New Mexico Underinsured Motorist Coverage (Schwartz)
New Mexico policyholders whose State Farm auto policy included “U Coverage” between January 1, 2010, and December 31, 2021, can still file under Schwartz v. State Farm Mutual Automobile Insurance Company (Case No. 18-CV-00328-KWR-SCY). The lawsuit alleged State Farm failed to properly explain offset procedures when selling the underinsured motorist portion of the coverage, producing illegal offsets that reduced claim payments.3Top Class Actions. $20.93M State Farm New Mexico U Coverage Class Action Settlement
Payments are calculated as a percentage of premiums paid: up to 21% for minimum-limits U Coverage and up to 13% for non-minimum-limits coverage, with the class total capped at $20,925,000. The claim deadline is July 2, 2026, and the final fairness hearing is scheduled for June 8, 2026, before Judge Kea W. Riggs.4Schwartz v. State Farm Settlement. Frequently Asked Questions
Recently Closed or Awaiting Final Approval
Missouri Labor Depreciation (Pregon) — Deadline Passed
The claim deadline for Pregon v. State Farm Fire and Casualty Co. (Case No. 24SL-CC03130) was April 2, 2026. If you did not file by that date, you are not eligible for payment. The settlement, valued at roughly $21.5 million with about $16.3 million designated for class members, covered Missouri policyholders who made structural damage claims with a date of loss between June 5, 2012, and October 2017, and had non-material depreciation (labor, equipment, removal) or General Contractor Overhead and Profit depreciation deducted from their actual cash value payments. It also resolved Brown v. State Farm and M&M Rental Prop., LLC v. State Farm. Eligible members receive 90% of the deducted non-material depreciation and 50% of the GCOP depreciation, plus 8.9% simple interest from August 6, 2021.5Pregon v. State Farm Settlement. Frequently Asked Questions6Pregon v. State Farm Settlement. Declaration of Class Counsel in Support of Final Approval
The court held the final approval hearing on March 3, 2026, after granting preliminary approval on October 10, 2025.7Pregon v. State Farm Settlement. Important Dates
Arkansas Total Loss Vehicle Valuations (Chadwick)
An Arkansas federal jury sided with a class of about 37,000 policyholders in June 2025, finding State Farm had underpaid total loss claims by using Audatex valuation software that applied a “typical negotiation adjustment” of roughly 9% to comparable vehicle prices. Lead plaintiff Rose Chadwick was found to have been underpaid about $600 on a vehicle valued at $4,700.8CBS News. State Farm Totaled Car Insurance Payout
State Farm agreed to a $15.6 million settlement, averaging roughly $489 per eligible policyholder. The class covers Arkansas policyholders whose total loss claims were paid using an Audatex report between November 29, 2016, and October 18, 2021, when State Farm discontinued the software. U.S. District Judge D.P. Marshall Jr. granted preliminary approval on March 27, 2026, and the final approval hearing is scheduled for July 15, 2026.9Insurance Journal. State Farm $15.6M Arkansas Settlement10Auto Body News. State Farm to Pay $15.6M to Settle Arkansas Class Action Over Total Loss Valuations
Settlements Already Paid Out
Universal Life Insurance Overcharges (Niewinski) — $65 Million
If you bought a State Farm universal life insurance policy between 1986 and 1993, checks from the $65 million Niewinski v. State Farm Life Insurance Company settlement (Case No. 2:23-cv-04159, Western District of Missouri) went out starting June 2024. About 450,000 policyholders were covered, with the average payout around $100, representing roughly 71% of the amount each was overcharged. Final approval came in April 2024.11WGLT. State Farm Pays $65 Million to Settle Life Insurance Overcharge Suit12National SF86 Settlement. Settlement Information
Hale RICO Settlement — $250 Million
The largest known State Farm class settlement was $250 million in Hale v. State Farm Mutual Automobile Insurance Co. (No. 12-0660-DRH, Southern District of Illinois), which received final approval on December 13, 2018. The suit, brought under the federal Racketeer Influenced and Corrupt Organizations Act, alleged State Farm secretly funded Judge Lloyd Karmeier’s 2004 Illinois Supreme Court campaign to secure a vote overturning a $1 billion consumer verdict from the earlier Avery v. State Farm case. The class covered roughly 4.7 million current and former policyholders. State Farm denied the allegations.13Bloomberg Law. State Farm $250M Class Action Racketeering Settlement Approved14State Farm Newsroom. Compromise in Hale Class Action
Hurricane Katrina False Claims — $100 Million
In August 2022, State Farm Fire and Casualty Co. agreed to pay the U.S. government $100 million to resolve a 16-year False Claims Act case brought by whistleblower sisters Cori and Kerri Rigsby, former claims adjusters who alleged the company submitted fraudulent flood claims to FEMA by attributing wind damage to storm surge. A federal jury had found in 2013 that State Farm improperly shifted wind losses onto the federal flood program, a finding upheld by the U.S. Supreme Court. U.S. District Judge Sul Ozerden also ordered $750,000 in damages, with 30% going to the Rigsbys as relators.15Insurance Journal. State Farm Subsidiary to Pay $100M for False Katrina Claims16Morning Call. State Farm Subsidiary to Pay $100M for False Katrina Claims
An earlier 2007 Katrina deal produced roughly $80 million in payments to over 600 Mississippi policyholders and at least $50 million to reopen claims for about 35,000 more.17NBC News. State Farm Settles Katrina Suits
Labor Depreciation: Where Your State Stands
The Missouri Pregon settlement is part of a wider fight over whether State Farm can depreciate labor costs on property claims, and outcomes vary sharply by state. Kentucky policyholders won class certification for 65,575 people led by plaintiffs Susan Hicks and Don Williams; the Sixth Circuit upheld the ruling that Kentucky law does not permit labor depreciation in 2018 and affirmed certification in 2020, sending the case back for damages.18Claims Journal. 6th Circuit Approves Class Certification in State Farm Labor Depreciation Case
Alabama policyholders received a class settlement estimated at over $38 million, paying claimants 100% of withheld labor depreciation plus interest. A Mississippi settlement was valued at over $11.5 million. California law forbids labor depreciation outright. Courts in Ohio and Missouri have allowed the practice, and the Minnesota Supreme Court held in Wilcox v. State Farm (2016) that the issue requires case-by-case analysis, making class treatment there “unlikely.”19MSB Law. Case Results20United Policyholders. 6th Circuit Approves Class Action for KY Underpayments by State Farm
Active Cases Without a Class Settlement Yet
Tennessee: Class Certification Denied (Clippinger)
Tennessee policyholders hoping to recover under the same Audatex “negotiation adjustment” theory that won in Arkansas will not proceed as a class. In Clippinger v. State Farm Mutual Automobile Insurance Co. (No. 24-5421), the Sixth Circuit reversed class certification on April 24, 2026, after an en banc rehearing, holding that liability required vehicle-by-vehicle analysis of make, model, mileage, and condition. About 90,000 Tennessee policyholders had sought certification.21U.S. Court of Appeals for the Sixth Circuit. Clippinger v. State Farm, Opinion22Insurance Business Magazine. State Farm Beats 90,000-Member Class Action Over Total-Loss Car Valuations
Oklahoma Hail Claims
More than 600 lawsuits are pending in Oklahoma alleging State Farm ran a “Hail Focus Initiative” beginning around 2020 to minimize roof damage payouts, using internal definitions of damage (such as requiring physical puncture of shingles) not found in customer policies. These are individual suits, not a class settlement. Oklahoma Attorney General Gentner Drummond intervened in Hursh v. State Farm Fire and Casualty Company (Case No. CJ-2025-2626) on December 4, 2025, alleging violations of the state Consumer Protection Act, the state RICO statute, and the Deceptive Trade Practices Act. A state court granted intervention on December 31, 2025; State Farm appealed and the matter is before the Oklahoma Supreme Court.23Oklahoma Attorney General. Case Against State Farm Over Hail Focus Initiative Scheme24NPR. State Farm Home Insurance Hail Climate Change
Individual results include a 2022 federal jury award of $325,000 in bad faith damages and $16,000 for breach of contract to one homeowner, plus reported settlements of $2 million and $3 million to others under confidentiality agreements.25NBC News. Lawsuit Alleges State Farm Cheats Homeowners
California Wildfire Claims
The California Department of Insurance announced on May 4, 2026, that a market conduct examination of State Farm’s handling of the January 2025 Eaton and Palisades wildfire claims found 398 violations in 114 of 220 sampled claims, plus 34 more from complaint files. Alleged failures included missing the 15-day investigation start deadline and 40-day accept-or-deny deadline, underpayment, frequent adjuster reassignment (one policyholder was reportedly assigned a dozen adjusters within four months), and mishandling of smoke damage claims. The department filed an Accusation and Order to Show Cause seeking about $2 million in fines, and an administrative law judge could suspend the company’s license to write new policies in California for one year.26California Department of Insurance. Market Conduct Examination Results27New York Times. California State Farm Fires Insurance
State Farm rejected the allegations and said it had already paid over $5.7 billion on 13,700 claims from the 2025 fires.28Fox 40. State Farm LA Wildfire Fines
A separate March 2026 regulatory settlement with the California Department of Insurance and Consumer Watchdog requires State Farm to reduce rate increases for rental dwelling and condominium policies, refund the difference with 10% interest, and extend a one-year moratorium on non-renewals and cancellations of homeowners, rental, condominium, and renters policies. That agreement is pending review by an administrative law judge.29California Department of Insurance. State Farm Rate Settlement
Virginia Premium Miscalculations
On May 20, 2026, the Virginia State Corporation Commission accepted a settlement after the Bureau of Insurance found State Farm had issued policies inconsistent with its filed rates, producing incorrect premiums on numerous personal auto policies. State Farm paid roughly $2.5 million in restitution to 91,696 consumers and agreed to a corrective action plan. This was a regulatory settlement, not a class action, and affected consumers were identified by the company directly.30Virginia State Corporation Commission. State Farm Companies Settlement Fact Sheet
How to Check Whether You Qualify
For any open settlement, the official settlement website is where the claim form lives and where the deadlines are authoritative. If you received a mailed or emailed notice with a class member ID, keep it: filing is faster and cleaner with that ID than without. If you think you belong in a closed case whose checks have already gone out, contact the settlement administrator listed on the case website; unclaimed funds and address updates are handled there, not by State Farm directly.