State Farm Arkansas Total Loss Class Action Settlement
State Farm agreed to a $15.5 million class action settlement resolving claims it improperly deducted a 'typical negotiation adjustment' from total loss vehicle payouts in Arkansas, underpaying policyholders. Eligible Arkansas residents can claim an average of roughly $489 by August 19, 2026.
Estimated payout
Approximately $489 average (68% of negotiation adjustment)
Claim deadline
August 19, 2026
Proof of purchase
Required
Settlement fund
$15.5 million
What is the State Farm auto insurance settlement about?
The State Farm Arkansas total loss settlement (Chadwick v. State Farm Mutual Automobile Insurance Co.) resolves a class action lawsuit filed in the U.S. District Court for the Eastern District of Arkansas. The lawsuit alleged that State Farm systematically underpaid total loss claims by applying a 'typical negotiation adjustment' — a deduction that reduced the actual cash value of totaled vehicles — to Audatex-generated valuations. Plaintiffs argued this adjustment had no basis in real-world data and resulted in Arkansas policyholders receiving less than they were owed under their policies. State Farm denies any wrongdoing.
The $15,583,700 settlement covers Arkansas residents who filed first-party total loss auto insurance claims with State Farm between November 29, 2016, and October 18, 2021, where the vehicle valuation included an Audatex report with a 'typical negotiation adjustment.' Eligible class members are calculated to receive approximately 68% of the total negotiation adjustment amount that was deducted from their payout — averaging roughly $489 per claim. Proof of your State Farm policy number or total loss claim information is required. The deadline to file is August 19, 2026.
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Who qualifies to file a claim?
- You are or were an Arkansas resident insured under a State Farm auto policy.
- You filed a first-party total loss vehicle claim with State Farm between November 29, 2016, and October 18, 2021.
- Your total loss valuation was generated using an Audatex report that included a 'typical negotiation adjustment' deduction.
How to file a claim
- 1Visit the official settlement website at statefarmartotallosslitigation.com.
- 2Confirm your eligibility: you had a State Farm Arkansas auto policy and filed a total loss claim between November 29, 2016, and October 18, 2021.
- 3Have your State Farm policy number or total loss claim information ready as proof.
- 4Complete the online claim form at the settlement website and submit before August 19, 2026.
- 5Save your claim confirmation number for your records.
Is the State Farm settlement legit?
Yes. The State Farm auto insurance settlement is a court-supervised class action overseen by the U.S. District Court for the Eastern District of Arkansas (No. 4:21-cv-01161-DPM) 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.
Frequently asked questions
Find every settlement you’re owed
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.
Before you file
If this is your first claim, how to claim a class action settlement walks through the process end to end, and what class action settlements actually pay per person explains how the amount is decided before you spend time on the form. Many cases need no receipts at all — see settlements with no proof of purchase.