State Farm Paid Arkansas Drivers Less for Totaled Cars — There's a $15.6 Million Settlement and an August 19, 2026 Deadline
State Farm Arkansas Total Loss Class Action Settlement
State Farm agreed to a $15,583,700 settlement over allegations that it underpaid Arkansas policyholders on total-loss vehicle claims by applying improper "typical negotiation adjustments" to comparable vehicle values. Arkansas residents whose vehicles were declared total losses by State Farm between November 29, 2016, and October 18, 2021, may be entitled to a cash payment. The estimated average recovery is $489, and no supporting documentation is required to file.
Settlement fund
$15.6M
Common fund
Top payout
~$489 avg.
68% of TNA amount, pro rata
Claim deadline
Aug 19, 2026
54 days remaining
You may be owed money
Filing is free and takes a few minutes. Deadline: Aug 19, 2026.
Do you qualify?
You are a Class Member if ALL of the following apply:
- You are an Arkansas resident (or made a first-party claim on a State Farm policy issued to an Arkansas resident).
- State Farm determined your vehicle was a total loss between November 29, 2016, and October 18, 2021.
- State Farm based your claim payment on an Audatex valuation report where a typical negotiation adjustment (TNA) was applied to at least one comparable vehicle.
- Excluded: State Farm, its officers, directors, employees, agents, and affiliates; the judge and court staff presiding over the case; and anyone who validly excluded themselves from the class.
Not sure if you qualify? Call the Settlement Administrator at 1-866-255-6602, or visit StateFarmARTotalLossLitigation.com. If State Farm identified you as a class member, you should have received an email or postcard notice with a Unique ID and Web Registration Code.
What happened
When a car is declared a total loss, an insurer is contractually required to pay the vehicle's actual cash value. Plaintiff Rose Chadwick alleged that State Farm systematically underpaid Arkansas policyholders by using Audatex valuation reports that applied a "typical negotiation adjustment" to reduce the value of comparable vehicles — a deduction that Plaintiff contends is not supported by actual market data and violates State Farm's insurance contracts and the implied covenant of good faith and fair dealing.
State Farm denies the allegations and denies any wrongdoing or liability. The parties agreed to settle to avoid the uncertainty, cost, and time of continued litigation. The settlement fund of $15,583,700 is available to class members who submit a valid and timely claim.
How to file a claim
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1. Confirm you are eligible
You must have made a first-party total-loss claim on a State Farm policy issued to an Arkansas resident between November 29, 2016, and October 18, 2021, where State Farm used an Audatex report with a typical negotiation adjustment. If State Farm has your records, you likely received a notice with a Unique ID and Web Registration Code.
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2. Calculate your claim amount
Your payment is 68% of the Typical Negotiation Adjustment (TNA) amount applied to your claim, as determined from State Farm's own records. The estimated average payment is $489. Because this is a pro rata fund, your actual payment may be higher or lower depending on total valid claims filed. No documentation is required — the claim amount comes from State Farm's data.
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3. File online or by mail
Submit your Claim Form online at statefarmartotallosslitigation.com using your Unique ID and Web Registration Code by August 19, 2026. To file by mail, sign the paper Claim Form you received, tear at the perforation, and postmark it by August 19, 2026, to: Chadwick v. State Farm Mutual Auto. Ins. Co., Settlement Administrator – 9148, PO Box 2798, Faribault, MN 55021-9798. You can also call 1-866-255-6602 to request a paper form.
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4. Receive your payment
Payments are issued after the Court grants final approval at the July 15, 2026 Fairness Hearing and any appeals are resolved. The appeals process can take six months to a year or more after the hearing. No follow-up is required once your claim is submitted; the administrator will contact you if there is an issue.
Key dates
- Jun 25, 2026 Opt-out & objection deadline Passed
- Aug 19, 2026 Claim filing deadline Upcoming
- Jul 15, 2026 Final Fairness Hearing (9:00 a.m. CT, in person) Soon
- TBD after final approval Payments issued to claimants Pending
The Fairness Hearing is scheduled for July 15, 2026 at 9:00 a.m. in Courtroom 1A at the United States District Court for the Eastern District of Arkansas, 500 West Capitol Avenue, Little Rock, Arkansas 72201. The Court may move the hearing date, so check StateFarmARTotalLossLitigation.com for updates.
Where the money is going
The $15,583,700 settlement fund is non-reversionary and will be paid by State Farm separately from attorneys' fees, litigation costs, and the class representative service award — meaning those amounts do not reduce what is available to class members.
Attorneys' fees, costs, and the service award are paid by State Farm in addition to the settlement fund and do not reduce the amount available to class members. All amounts are subject to final court approval. Individual payments are pro rata — the per-person amount depends on the total number of valid claims filed.
Common questions
How much money will I receive?
Your payment is 68% of the Typical Negotiation Adjustment (TNA) amount that State Farm applied to your specific total-loss claim. The estimated average payment is $489. Because payments are distributed pro rata from a $15,583,700 fund, your actual amount depends on how many valid claims are filed. No documentation is required — the calculation uses State Farm's own records.
Do I need to submit proof of purchase?
No documentation is required to file a claim. The settlement amount is calculated directly from State Farm's records. You will need the Unique ID and Web Registration Code from the postcard or email notice you received to file online.
What if I didn’t receive a notice?
If you believe you qualify but did not receive a notice, call the Settlement Administrator at 1-866-255-6602 or visit StateFarmARTotalLossLitigation.com to request a Claim Form. The administrator can check whether you are in the class. The claim deadline is August 19, 2026.
Does staying in the class affect my right to sue later?
By staying in the settlement, you release all claims arising out of or related to State Farm's settlement of your total-loss claim as alleged in the lawsuit. You are NOT releasing claims for personal injury, medical payments, uninsured motorist, or underinsured motorist coverage. If you want to preserve your right to sue State Farm separately on the total-loss claims, you must have opted out by June 25, 2026.
When will payments be sent out?
Payments will be issued after the July 15, 2026 Fairness Hearing and after any appeals are resolved. The appeal window can extend six months to a year or more after final approval. The Settlement Administrator will mail checks or issue electronic payments once the settlement is fully final.
Dapeer Law, P.A.
Consumer class action attorneys based in South Florida. We track settlements so you don’t have to.
Similar open settlements
This page is for informational purposes only and does not constitute legal advice. Dapeer Law, P.A. is not the administrator of this settlement and is not affiliated with State Farm Mutual Automobile Insurance Company, Rust Consulting (the Settlement Administrator), or Class Counsel Carney Bates & Pulliam PLLC of Carney Bates & Pulliam PLLC, Normand PLLC of Normand PLLC, Jacobson Phillips PLLC of Jacobson Phillips PLLC, and Bailey Glasser LLP of Bailey Glasser LLP. The case is Chadwick v. State Farm Mutual Automobile Ins. Co., Case No. 4:21-cv-1161-DPM, pending in the U.S. District Court for the Eastern District of Arkansas, Eastern Division before the Honorable D.P. Marshall Jr.. Class representatives are Rose Chadwick. State Farm denies wrongdoing. This website is attorney advertising. Past results do not guarantee future outcomes.
