State Farm $15.6M Totaled Car Settlement -- Jury Found Insurer Underpaid 37,000 Arkansas Drivers
By Steve Levine
Published: March 28, 2026 • Updated: March 29, 2026
On March 27, 2026, a federal judge in Arkansas granted preliminary approval to a $15.6 million settlement in the case of Chadwick v. State Farm Mutual Automobile Insurance Company. This came almost a year after a jury found that State Farm systematically underpaid approximately 37,000 Arkansas policyholders when their vehicles were declared a total loss.
There is no claim form available yet. The settlement is in its pre-notice stage. Here is what happened, who qualifies, and what to expect next.
What Is This Settlement About?
When your car is totaled, your insurance company is supposed to pay you the actual cash value of the vehicle -- essentially what your car was worth right before the accident. State Farm used software made by Audatex North America to calculate these values. The lawsuit alleged that the software applied a "typical negotiation adjustment" to comparable vehicle prices, which assumed a buyer could haggle down the price of a used car. This adjustment reduced the calculated value of the totaled vehicle, which in turn reduced the payout to the policyholder.The plaintiff, Rose Chadwick, argued this was unfair -- particularly in today's used car market, where dealers rarely negotiate on price. By applying this phantom discount to comparable vehicles, State Farm's software systematically lowered every total loss payout by a percentage that did not reflect reality.
In June 2025, an Arkansas federal jury agreed. The jury found in favor of Chadwick and approximately 37,000 other plaintiffs, determining that State Farm violated its contractual obligation to pay actual cash value. The jury found Chadwick herself was underpaid approximately $600 on a vehicle worth $4,700. State Farm no longer uses the same software to calculate total loss values.
There Is No Claim Form Yet
The $15.6 million settlement received preliminary approval on March 27, 2026, but the process is not open to the public yet. No claim form exists. No settlement website with a filing portal has launched. No claim deadline has been announced.Class action settlements go through several stages before claims open: the lawsuit is filed, a settlement is reached, the court grants preliminary approval (where this case is now), a notice phase begins where a settlement website is created and emails or letters are sent out, the court holds a final approval hearing, and then payments are distributed. The next step is the notice phase -- that is when claim forms will become available.
Who Qualifies?
This settlement is for Arkansas residents only. Based on the class certification from March 2024, you qualify if all of the following are true: you were an Arkansas resident and State Farm policyholder who made a claim for physical damage to a motor vehicle between November 29, 2016 and March 18, 2024, you received compensation from State Farm for the total loss of your vehicle, and State Farm based your payout on a valuation report prepared by Audatex North America that included a typical negotiation adjustment to one or more comparable vehicles.If you live outside Arkansas, this specific settlement does not cover you -- even if you believe State Farm underpaid your totaled car claim. However, similar lawsuits are pending in other states.
How Much Could Each Person Get?
Individual payout amounts have not been finalized. The total settlement fund is $15.6 million. The certified class includes approximately 37,000 members. The jury found the lead plaintiff was underpaid by about $600. Based on the fund size and class size, estimated average payouts could be in the range of several hundred dollars per person, but the actual amount will depend on how many people file claims, what deductions are made, and how individual underpayments are calculated.Attorney fees, costs, and service awards will be deducted from the fund before distribution.
This Is Part of a Nationwide Pattern
This Arkansas case is not an isolated incident. Similar total loss undervaluation lawsuits have been filed against State Farm and other insurance carriers in at least 19 states. The legal theory is the same everywhere: insurers used automated software that systematically reduced the actual cash value of totaled vehicles, resulting in lower payouts to policyholders.A separate case against Progressive Insurance resulted in a $43 million settlement using a similar legal theory. Regulators in several states are now evaluating whether insurers need to change how they value total loss vehicles. The outcome of those reviews could reshape how payouts are calculated across the industry.
What Should You Do Right Now?
If you are an Arkansas resident who had a vehicle totaled by State Farm during the class period, hold onto your insurance payout documents, valuation reports, and any communication from State Farm about the total loss. When the settlement website launches and claim forms become available, you will likely need this information.If you live in another state and believe State Farm underpaid your total loss claim, watch for similar lawsuits in your state. This is an evolving area of litigation with cases active in multiple jurisdictions.
The official settlement website is now live at statefarmartotallosslitigation.com. Be cautious of any other website claiming you can file a State Farm total loss claim. No official claim form exists yet. When it does, it will be announced by the court and published on the official settlement website.
Case Information
Case: Chadwick v. State Farm Mutual Automobile Insurance Company, Case No. 4:21-cv-01161
Court: U.S. District Court, Eastern District of Arkansas
Judge: Hon. D.P. Marshall Jr.
Filed: November 29, 2021
Plaintiff: Rose Chadwick (Arkansas)
Defendant: State Farm Mutual Automobile Insurance Company
Allegation: Used Audatex software with "typical negotiation adjustment" that systematically reduced total loss payouts
Class Certified: March 18, 2024
Jury Verdict: June 2025 (found in favor of 37,000 plaintiffs)
Settlement Fund: $15,600,000
Preliminary Approval: March 27, 2026
Class Period: November 29, 2016 through March 18, 2024
Who Qualifies: Arkansas residents with State Farm total loss claims using Audatex valuations
Class Size: Approximately 37,000
Estimated Payout: Several hundred dollars per person (varies)
Claim Form: Not available yet (pre-notice stage)
Settlement Website: statefarmartotallosslitigation.com
Class Counsel: Carney Bates & Pulliam PLLC, Normand PLLC, Jacobson Phillips PLLC
How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:Sources
• Chadwick v. State Farm Mutual Automobile Insurance Company, Case No. 4:21-cv-01161 (E.D. Ark.)• Law360, "State Farm Inks $15.6M Deal In Totaled Car Payout Class Action" (March 27, 2026)
• CBS News, "Arkansas woman wins court challenge over insurance payout for a totaled car" (September 2, 2025)
About This Case
The $15.6 million settlement has preliminary approval but is not final. No claim form is available yet. No claim deadline has been announced. If the settlement receives final approval, eligible Arkansas class members will be notified. OpenClassActions.com will update this page when claims open. OpenClassActions.com is a consumer advocacy and class action news site, and is not a class action administrator or a law firm.
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Pre-Qualify| State Farm Totaled Car Settlement Summary | |
| Status | Preliminary Approval — No Claim Form Yet |
|---|---|
| Settlement Fund | $15,600,000 |
| Class Size | Approximately 37,000 |
| Who Qualifies | Arkansas State Farm total loss claimants (Nov 2016 – Mar 2024) |
| Estimated Payout | Several hundred dollars per person (varies) |
| Claim Form | Not available yet |
| Jury Verdict | June 2025 (found for plaintiffs) |
| Similar Cases | At least 19 states |
| Class Counsel | Carney Bates & Pulliam, Normand, Jacobson Phillips |