If you had a total loss auto insurance claim with State Farm in Alabama, you may qualify for a payment from a $1.2 million class action settlement.
Eligible policyholders and insured drivers can submit a claim to receive a $20.50 cash payment if their total loss payout allegedly did not include certain required purchasing fees.
Here’s what Alabama drivers need to know — and how to file before the deadline.
Why This Lawsuit Was Filed?
The lawsuit claimed that State Farm failed to fully reimburse certain purchasing fees tied to total loss vehicle claims in Alabama.
According to the complaint, affected fees may have included:
State and county sales tax
Ad valorem taxes
Valorem refund credit fees
License, tag, and school fees
Plaintiffs argued that this may have violated the terms of State Farm auto insurance policies.
State Farm denies wrongdoing but agreed to settle the lawsuit to avoid the cost and uncertainty of continued litigation.
Who Qualifies?
You may qualify if all of the following apply:
You are or were insured under a State Farm auto insurance policy in Alabama
You submitted a covered first-party private passenger auto physical damage claim
The claim was made between Nov. 7, 2018, and Feb. 10, 2026
Your claim resulted in a total loss payment
The payment allegedly did not include full purchasing fees
How Much Can You Get?
Eligible class members can submit a claim for a:
$20.50 cash payment
Payments will be mailed by paper check to approved claimants.
Your Options at a Glance
| Option | What It Means | Deadline |
|---|---|---|
| File a Claim | Submit a claim to receive a payment | July 15, 2026 |
| Exclude Yourself | Opt out of the settlement | May 15, 2026 |
| Object | Tell the court why you disagree with the settlement | Before the final approval hearing |
| Do Nothing | Receive no payment from the settlement | N/A |
How to File a Claim?
To receive payment, eligible class members must submit a valid claim online or by mail.
Information You’ll Need
Claimants must provide:
State Farm claim ID
Date of loss
Class member ID from the settlement notice
If you do not know your class member ID, the settlement website states you may be able to look it up using your:
State Farm claim number
Policy number
File by Mail
Completed claim forms can be mailed to:
Dortch v. State Farm
c/o Kroll Settlement Administration LLC
P.O. Box 5324
New York, NY 10150-5324
When Will Payments Be Sent?
According to the settlement website, payments are expected to be issued approximately 120 days after final court approval, assuming there are no appeals or delays.
