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State Farm Alabama Total Loss Fees Class Action Settlement

State Farm agreed to a class action settlement resolving claims that it failed to include the full required purchasing fees — including Alabama sales tax, county taxes, and tag and license fees — in total-loss auto insurance payments made to Alabama policyholders. Eligible claimants receive a fixed $20.50 payment. The deadline to file is July 15, 2026.

Estimated payout

$20.50 (fixed payment per eligible claim)

Claim deadline

July 15, 2026

Proof of purchase

Not required

Settlement fund

$1.2 million

What is the State Farm auto insurance settlement about?

The State Farm Alabama total loss fees settlement (Rochell Brent Dortch v. State Farm Mutual Automobile Insurance Company, Case No. 03-CV-2024-901729.00) resolves a lawsuit filed in the Circuit Court of Montgomery County, Alabama, alleging that State Farm failed to pay the full purchasing fees owed to Alabama policyholders on first-party total-loss auto claims. Under Alabama law and the applicable insurance policies, State Farm was required to include state sales tax (2%), county sales tax amounts, and state, county, and city license fees, tag fees, and school fees in total-loss settlement payments — fees that allegedly were not consistently paid.

State Farm denied wrongdoing but agreed to settle the lawsuit for the benefit of Alabama policyholders who submitted total-loss auto claims between November 7, 2018 and February 10, 2026. Each verified eligible claimant receives a fixed $20.50 payment. Class members who received a mailed notice have a pre-filled claim form they can sign and return; others can file online or request a blank form from the settlement administrator.

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Who qualifies to file a claim?

  • You are a State Farm policyholder or insured who had an Alabama first-party private passenger auto physical damage claim between November 7, 2018 and February 10, 2026, that resulted in a total-loss settlement.
  • Your total-loss payment from State Farm did not include the full required purchasing fees (Alabama state sales tax, county sales tax, and/or state/county/city license, tag, or school fees).
  • You are a U.S. resident who was an Alabama State Farm policyholder during the class period.

How to file a claim

  1. 1If you received a pre-filled Notice and Claim Form in the mail from Kroll Settlement Administration LLC, review it, sign it, and return it by mail postmarked by July 15, 2026.
  2. 2Alternatively, file your claim online at the official settlement website: AlabamaFeeSettlement.com — or use the online form at the link below.
  3. 3If you did not receive a mailed notice but believe you qualify, contact the settlement administrator at 888-610-1723 or through AlabamaFeeSettlement.com to request a blank claim form.
  4. 4No documentation is required. Submit your claim by the July 15, 2026 deadline and save your confirmation. Mail paper forms to: Kroll Settlement Administration LLC, P.O. Box 5324, New York, NY 10150-5324.
Official State Farm settlement claim site

Is the State Farm settlement legit?

Yes. The State Farm auto insurance settlement is a court-supervised class action overseen by the Circuit Court of Montgomery County, Alabama (03-CV-2024-901729.00) and administered by an official settlement administrator. You file your claim directly with the administrator and keep 100% of any payment — Payout never takes a cut. The fastest way to avoid missing this and other settlements you qualify for is to let Payout match and file for you in minutes.

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The State Farm settlement is one of nearly 100 active class actions. Download Payout free to see them all and file in minutes — you keep 100% of what you claim.

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