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State Farm has agreed to pay $20.50 per claimant to resolve allegations it failed to include full purchasing fees — including sales tax, ad valorem taxes, and license fees — in total loss auto claim payments to Alabama policyholders.
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Alabama policyholders and insureds of an applicable State Farm entity who submitted a covered first-party private passenger auto physical damage claim between Nov. 7, 2018, and Feb. 10, 2026, that resulted in a total loss claim payment that did not include full purchasing fees.
None required.
Settlement Amount
$20.50
Claim Form Deadline
07/15/2026
Exclusion Deadline (Opt-Out)
05/15/2026
Final Approval Hearing
06/15/2026
A class action lawsuit alleged that State Farm failed to pay full purchasing fees on total loss auto claims to Alabama policyholders, including state and county sales tax, ad valorem taxes, and license, tag, and school fees. As a result, affected policyholders were allegedly denied the full amount they were owed on their total loss claims. State Farm has not admitted any wrongdoing but agreed to a settlement to resolve these alleged claims.
Eligible claimants may receive an estimated $20.50 in satisfaction of applicable purchasing fees. The total settlement amount has not been publicly disclosed. Individual payout amounts are not guaranteed and are subject to the terms of the settlement. This page is for informational purposes only and does not constitute legal advice.
Settlement: Rochell Brent Dortch v. State Farm Mutual Automobile Insurance Company, Case No. 03-CV-2024-901729.00 Claim Deadline: July 15, 2026 Settlement Website: AlabamaFeeSettlement.com
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