When will the State Farm total loss settlement claim form be available?

The claim form is not available yet. The final approval hearing is scheduled for July 15, 2026. If the court grants final approval, claim forms are expected to become available in late July or early August 2026. The deadline to file a claim is August 19, 2026.

Who qualifies for the State Farm total loss class action settlement?

You may qualify if you are an Arkansas resident who had a total loss claim with State Farm between November 29, 2016 and October 18, 2021, and your vehicle valuation was based on an Audatex report that included a typical negotiation adjustment (TNA).

How much will each person get from the State Farm settlement?

The total settlement fund is $15,583,700. Based on class size and estimated deductions, the average payout is estimated at approximately $489 per class member. Individual amounts may vary depending on the specific underpayment applied to each claim.

When will State Farm settlement payments be sent?

Payments are not expected until after final approval, claims processing, and any appeals are resolved. A realistic timeline places payment distribution in late 2026 to early 2027.

Do I need to submit proof to file a State Farm total loss settlement claim?

Proof requirements have not been finalized. However, because State Farm and Audatex maintained internal records of vehicle valuations and the adjustments applied, the claims process is expected to require minimal documentation from class members.

State Farm $15.5M Total Loss Settlement -- Claim Form, Payout Timeline, and Who Qualifies

By Steve Levine

State Farm $15.5 Million Total Loss Class Action Settlement Arkansas Underpaid Totaled Vehicle Claims 2026

Published: April 6, 2026

Settlement Amount: $15,583,700
Status: Preliminary Approval Granted
Claim Form: Not Yet Available
Final Approval Hearing: July 15, 2026
Estimated Average Payout: ~$489 per class member
Who Qualifies: Arkansas residents with State Farm total loss claims (Nov 2016 -- Oct 2021)

State Farm Mutual Automobile Insurance Company has agreed to pay $15,583,700 to resolve a class action lawsuit alleging it systematically underpaid Arkansas policyholders on total loss vehicle claims. The case, Chadwick v. State Farm Mutual Automobile Insurance Co., No. 4:21-cv-01161 (E.D. Ark.), centers on the insurer's use of a valuation tool that applied an artificial reduction to the actual cash value of totaled vehicles.

The settlement has received preliminary approval from the federal court. However, no claim form is available yet, and the case must still pass through several procedural stages before payments are distributed. For Arkansas residents who had a vehicle totaled by State Farm during the relevant time period, this is a case worth watching closely.

Court documents reviewed in this case include the original complaint and federal court orders.

When Will the Claim Form Be Available?

The claim form is not available yet. The court has scheduled a final approval hearing for July 15, 2026. If the settlement receives final approval at that hearing, the claim form is expected to become available shortly afterward, likely in late July or early August 2026.

The current deadline to submit a claim is August 19, 2026, though this date could shift depending on the outcome of the final approval hearing. Class members should not attempt to file a claim with any third-party website before the official claim form is released through the court-approved settlement administrator.

See the full State Farm totaled car class action settlement details on OpenClassActions.com

Why Was State Farm Sued?

The lawsuit alleged that State Farm used third-party valuation software provided by Audatex North America to calculate the actual cash value of totaled vehicles. Embedded in that software was a feature called a "typical negotiation adjustment," or TNA. The TNA applied an automatic percentage reduction to comparable vehicle values, based on the assumption that buyers routinely negotiate lower prices when purchasing used cars.

The plaintiff, Rose Chadwick, argued that this assumption was false. In today's used vehicle market, particularly through dealerships, listed prices are frequently non-negotiable. By applying the TNA to comparable vehicles, the software reduced the calculated value of the totaled car, which directly reduced what the policyholder received. The complaint alleged that this practice was applied uniformly across thousands of Arkansas claims, resulting in systematic underpayment of total loss claim settlements.

(See Complaint, Chadwick v. State Farm, E.D. Ark. 2021)

Settlement Amount and Payout Breakdown

The total settlement fund is $15,583,700. This represents an estimated recovery of approximately 68% of the total damages calculated across the class. After deductions for attorney fees, litigation costs, and administrative expenses, the remaining funds will be distributed to eligible class members.

Based on the size of the class and the total fund, the estimated average payout is approximately $489 per class member. Individual payment amounts may vary depending on the specific underpayment applied to each policyholder's total loss claim. Those who had higher-value vehicles or larger TNA reductions may receive more, while those with smaller adjustments may receive less.

Who Qualifies for the State Farm Total Loss Settlement?

This settlement is limited to Arkansas residents. To qualify, you must meet all of the following criteria: you were an Arkansas resident who held a State Farm auto insurance policy, your vehicle was declared a total loss between November 29, 2016 and October 18, 2021, and your total loss payout was calculated using an Audatex valuation report that included a typical negotiation adjustment.

If you are unsure whether a TNA was applied to your claim, the settlement administrator will have access to State Farm's internal records. Policyholders who meet the class definition should receive notice directly from the settlement administrator once the notice phase begins.

Residents of other states are not covered by this particular totaled vehicle settlement, even if State Farm used the same valuation software in their claims.

Important Dates

The court has established the following schedule for the remaining stages of this insurance underpayment lawsuit:

Key Dates
June 15, 2026	Objection deadline
June 25, 2026	Opt-out deadline
July 15, 2026	Final approval hearing
August 19, 2026	Claim submission deadline

These dates are subject to change if the court modifies the settlement schedule. Class members who wish to preserve their right to file their own lawsuit against State Farm must opt out before June 25, 2026. Those who object to the settlement terms but still want to participate must file their objection by June 15, 2026.

When Will Payments Be Sent?

Even if the court grants final approval on July 15, 2026, payments will not be distributed immediately. After final approval, the settlement administrator must process all submitted claims, verify eligibility, and calculate individual payment amounts. There is also a window for any appeals to be filed and resolved.

Based on the typical timeline for class action settlements of this size, a realistic estimate places payment distribution in late 2026 to early 2027. Delays are common in class action payouts, particularly when the class size is large and individual calculations are required. Class members should plan accordingly and not expect an immediate State Farm class action payout following the final approval hearing.

Is Proof Required to File a Claim?

The specific documentation requirements for the claims process have not been finalized. However, because State Farm and Audatex maintained detailed internal records of every total loss valuation, including whether a typical negotiation adjustment was applied, the claims process is expected to require minimal proof from individual class members.

In many insurance class action settlements involving internal company data, the settlement administrator cross-references submitted claims against the insurer's own records. This typically reduces the burden on claimants. That said, holding onto any total loss paperwork, valuation reports, or correspondence from State Farm is still advisable.

Court Record and Legal Background

The case has been actively litigated in federal court, with filings including the original complaint and multiple court orders outlining the valuation practices at issue. The litigation began in November 2021 when the complaint was filed in the U.S. District Court for the Eastern District of Arkansas. The case proceeded through discovery, class certification, and ultimately a jury trial in 2025 that found in favor of the plaintiff class.

(See, e.g., Order, Doc. 124, Chadwick v. State Farm, E.D. Ark.)

The jury determined that State Farm's use of the TNA constituted a breach of its contractual obligation to pay actual cash value for totaled vehicles. Following the verdict, the parties negotiated a settlement to resolve damages for the certified class of approximately 37,000 Arkansas policyholders.

Why This Settlement Matters for Consumers

The State Farm total loss settlement has significance beyond the individual payouts. At its core, this case challenged the transparency of how insurance companies determine the value of totaled vehicles. For years, policyholders had little visibility into the software-driven calculations that determined their payouts. Many accepted what their insurer offered without realizing that an artificial reduction had been applied.

This lawsuit brought those hidden adjustments into the open. The jury's finding that the typical negotiation adjustment was improper sends a clear signal to the insurance industry: valuation methods must reflect actual market conditions, not hypothetical discounts that benefit the insurer at the expense of the policyholder.

Similar cases have been filed in multiple states against various insurers, all challenging the same fundamental practice. The outcome of this Arkansas case could influence how total loss valuations are conducted nationwide and whether regulators intervene to require greater transparency in insurance payout calculations. For consumers, the broader takeaway is straightforward: when your car is totaled, you have the right to receive fair compensation based on what your vehicle was actually worth.

The Bottom Line

The $15,583,700 State Farm total loss settlement is still in its preliminary stage. The court must grant final approval before claims can be processed and payments can be distributed. The final approval hearing is set for July 15, 2026, and the claim form is expected to become available shortly after that date.

If you are an Arkansas resident who had a vehicle totaled by State Farm between November 2016 and October 2021, monitor the case for updates. Do not file claims through unofficial channels. When the official claim form is released, it will be announced through the court-appointed settlement administrator.

This is not a settlement to ignore. With an estimated average payout of $489 and a streamlined claims process expected, eligible class members should be prepared to act once the claim form becomes available.

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 Co., No. 4:21-cv-01161 (E.D. Ark.)
• Complaint, Chadwick v. State Farm, E.D. Ark. (2021)
• Order, Doc. 124, Chadwick v. State Farm, E.D. Ark.

About This Case

The $15,583,700 settlement has preliminary approval but is not final. No claim form is available yet. The final approval hearing is scheduled for July 15, 2026. If the settlement receives final approval, eligible Arkansas class members will be notified and a claim form will be made available. 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.

For more class actions keep scrolling below.

State Farm Total Loss Settlement Summary
Status	Preliminary Approval Granted
Settlement Fund	$15,583,700
Est. Recovery	~68% of total damages
Est. Avg. Payout	~$489 per class member
Class Size	Approximately 37,000
Who Qualifies	Arkansas State Farm total loss claimants (Nov 2016 – Oct 2021)
Claim Form	Not available yet
Final Approval	July 15, 2026
Claim Deadline	August 19, 2026
Case	Chadwick v. State Farm, No. 4:21-cv-01161 (E.D. Ark.)
Court	U.S. District Court, E.D. Arkansas
Est. Payment Date	Late 2026 to Early 2027