State Farm Alabama $1.2M Total-Loss Fees Settlement

State Farm Alabama total-loss purchasing fees class action settlement

Published: June 12, 2026

Status Claims Open

Claim Deadline July 15, 2026

Estimated Payout $20.50 flat Same amount for every approved claimant · from a $1,209,295 fund

Proof Required Yes Claimant ID from the mailed/emailed Notice — or look up your Claimant ID using your State Farm Claim Number + Policy Number

What Is This Settlement About?

State Farm Mutual Automobile Insurance Company has agreed to a $1,209,295 class action settlement resolving claims that it underpaid Alabama policyholders on first-party total-loss auto claims by leaving out part of the "purchasing fees" needed to replace a totaled vehicle.

The lawsuit, Rochell Brent Dortch v. State Farm Mutual Automobile Insurance Company, is pending in the Circuit Court of Montgomery County, Alabama (Case No. 03-CV-2024-901729.00). The complaint alleges State Farm breached its auto policies by failing to pay the full Alabama state sales tax (2% exclusive of any city tax), county sales tax, applicable ad valorem taxes and ad valorem refund credit fees, and state, county, and city license fees, tag fees, and school fees on total-loss settlements.

State Farm denies any wrongdoing, and the court has not decided who is right. The parties agreed to settle to avoid the cost and risk of further litigation.

This Alabama-only case is separate from the larger State Farm Arkansas total-loss claim underpayment settlement and the State Farm UIM coverage settlement already covered on OCA.

Who Qualifies?

You are a settlement class member if you were an Alabama policyholder or otherwise insured under a State Farm auto insurance policy, and:

You submitted a covered first-party private-passenger auto physical-damage claim between November 7, 2018 and February 10, 2026; and
That claim resulted in a total-loss payment from State Farm that did not include the full "purchasing fees" — Alabama state sales tax (2% exclusive of any city tax), any county sales tax (at the local rate), any applicable ad valorem taxes and ad valorem refund credit fees, and any state, county, and city license, tag, or school fees.

Class members were identified from State Farm's records, and the Settlement Administrator sent notices to identified class members. If you believe you had a qualifying Alabama total-loss claim during the class period but did not receive a notice, file a claim through the official settlement website and the administrator will check your eligibility against State Farm's records.

How Much Can You Get?

Every approved class member receives a flat $20.50 payment — the amount State Farm has agreed represents the unpaid purchasing fees on a single total-loss claim. The payment is the same for every claimant; there is no tier and no need to itemize the underpaid fees.

The $1,209,295 fund also covers court-approved attorneys' fees and litigation costs, any service award to the class representative, and notice and administration expenses. The payment amount is set in the settlement agreement, so it does not pro-rate up or down based on how many people file.

How to File a Claim

Claims can be filed online at the official settlement website, AlabamaFeeSettlement.com, or by signing and mailing the pre-filled paper Claim Form attached to the mailed Notice. The deadline to submit the claim — online or postmarked — is July 15, 2026.

To file online, you will need one of the following:

The Claimant ID Number printed on the Postcard Notice or Email Notice the Settlement Administrator sent to identified class members; or
Your State Farm Claim Number and State Farm Policy Number for the total-loss claim — the portal will use those to look up your Claimant ID.

No receipts or out-of-pocket documentation of the loss are required. If you cannot locate either set of identifiers, use the contact page on the official settlement website to reach the Settlement Administrator.

Key Deadlines

Opt-out (exclusion) deadline: May 15, 2026 (passed)
Objection deadline: May 15, 2026 (passed)
Final approval hearing: June 15, 2026 at 9:00 a.m. Central Time
Claim deadline: July 15, 2026

If you do nothing, you remain in the class, receive no payment, and give up the right to sue State Farm over the claims released by the settlement. Payments are issued only after final approval and after any appeals are resolved.

Frequently Asked Questions

Who qualifies for the State Farm Alabama total-loss fees settlement?

You qualify if you were a State Farm policyholder or insured under a State Farm auto policy who submitted a covered first-party private-passenger total-loss claim in Alabama between November 7, 2018 and February 10, 2026, and the total-loss payment from State Farm did not include the full purchasing fees (Alabama state and county sales tax, applicable ad valorem taxes and refund credit fees, and state, county, and city license, tag, and school fees).

How much can I get from the State Farm Alabama settlement?

Each settlement class member who submits a valid, timely claim form will receive a flat $20.50 payment in satisfaction of the unpaid purchasing fees. The $1,209,295 fund covers payments, attorneys' fees, costs, service awards, and notice and administration expenses, all subject to court approval.

What is the deadline to file a claim?

Claims must be submitted online or postmarked by July 15, 2026. The opt-out (exclusion) deadline and objection deadline were May 15, 2026. The final approval hearing is scheduled for June 15, 2026 at 9:00 a.m. Central Time.

Do I need to prove my total-loss claim?

Yes. The online claim form requires a Claimant ID Number — the unique identifier printed on the mailed Postcard Notice and Email Notice the administrator sent to identified class members. If you no longer have the notice, the portal lets you look up your Claimant ID using your State Farm Claim Number and State Farm Policy Number for the totaled-vehicle claim. No receipts or out-of-pocket documentation of the loss are required, but you do need one of those two ID combinations to file.

What did State Farm allegedly do?

The lawsuit, Rochell Brent Dortch v. State Farm Mutual Automobile Insurance Company (Circuit Court of Montgomery County, AL, Case No. 03-CV-2024-901729.00), alleges State Farm breached its Alabama auto policies by failing to pay full purchasing fees — state and county sales tax, ad valorem taxes and refund credit fees, and license, tag, and school fees — on first-party total-loss settlements. State Farm denies the allegations and the court has not ruled on the merits; the parties agreed to settle to avoid the cost and risk of continued litigation.