State Farm Arkansas Total Loss Settlement – $15.6 Million (Arkansas Only)
State Farm has agreed to pay $15.58 million to settle Chadwick v. State Farm Mutual Automobile Insurance Co., resolving claims that Arkansas policyholders were underpaid on totaled vehicles when Audatex valuation reports applied a "typical negotiation adjustment" reducing comparable vehicle values. If you are an Arkansas resident with a qualifying State Farm total-loss claim, you may be entitled to a pro rata share averaging approximately $489 per claim.
Do I Qualify?
You may be eligible if:
- Arkansas residents who made a first-party claim on a State Farm auto insurance policy between November 29, 2016 and October 18, 2021
- Your vehicle was declared a total loss and you received a payout based on an Audatex valuation report
- The Audatex report included a "typical negotiation adjustment" applied to at least one comparable vehicle
- You submit a valid claim form with State Farm policy and claim information by August 19, 2026
Proof required. You must file a claim form with your State Farm policy and claim information. Audatex report details are already on file with the settlement administrator.
File your claim through the official settlement website.
File Your Claim →What Happened?
The lawsuit alleged State Farm systematically underpaid Arkansas policyholders for totaled vehicles by using Audatex valuation software that applied an approximately 9% downward "typical negotiation adjustment" to comparable vehicle values before calculating actual cash value. Plaintiff Rose Chadwick argued this adjustment had no factual basis and left policyholders with less than true market value for their wrecked cars. A federal jury agreed in June 2025 after five days of trial.
Despite winning the jury verdict, the parties agreed to a $15.58 million settlement rather than proceed to a separate damages phase, with U.S. District Judge D.P. Marshall Jr. granting preliminary approval on March 27, 2026. State Farm stopped using Audatex for Arkansas valuations in October 2021 — the same month the class period ends. The final approval hearing is scheduled for July 15, 2026; barring appeals, claims are expected to be filed by August 19.
This is one of a wave of similar total-loss valuation lawsuits pending against State Farm and other major insurers in Kansas, Illinois, North Carolina, Alabama, and California — but each state's case is separate. Arkansas policyholders are the only ones covered by this settlement.
How Much Will I Actually Get?
Court filings peg the average recovery at approximately $489 per claim, based on the size of each claimant's original negotiation-adjustment reduction. Policyholders whose original total loss payment was larger, or whose adjustment was steeper, will receive proportionally more from the $15.58 million fund after attorneys' fees and costs. File at StateFarmARTotalLossLitigation.com by August 19, 2026.
Last reviewed: June 23, 2026 | Information verified from court records and official settlement documents.