$1.2M State Farm Alabama Total Loss Settlement, Are You Eligible for $20.50? Deadline to File For Claim is July 15, 2026

State Farm Mutual Automobile Insurance Company has agreed to pay $1,209,295 to settle a class action lawsuit filed by an Alabama policyholder who alleged the company failed to include full purchasing fees — such as sales tax, ad valorem taxes, and vehicle tag fees — in total loss claim payments. If you were an Alabama State Farm policyholder who submitted a covered first-party private passenger auto physical damage claim between November 7, 2018, and February 10, 2026, that resulted in a total loss payment that did not include full purchasing fees, you may qualify for a $20.50 cash payment. The deadline to file is July 15, 2026.

Quick Facts

Field	Detail
Settlement Amount	$1,209,295
Claim Deadline	July 15, 2026
Who Qualifies	Alabama State Farm policyholders with a total loss auto claim between Nov. 7, 2018 – Feb. 10, 2026, where purchasing fees were not fully paid
Payout Per Person	$20.50 (fixed cash payment)
Proof Required	Class Member ID (or Policy Number + Claim Number)
Settlement Status	Preliminarily Approved
Administrator	Kroll Settlement Administration LLC — (833) 319-6686
Official Website	alabamafeesettlement.com

Current Status & What Happens Next

• The Circuit Court of Montgomery County, Alabama has preliminarily approved this settlement. The final approval hearing is set for June 15, 2026 at 9:00 a.m. CST.
• The opt-out and objection deadline is May 15, 2026 — if you want to preserve the right to sue State Farm separately, you must mail your exclusion request before that date.
• Payments will be issued to approved claimants approximately 120 days after the court grants final approval of the settlement.

What Did State Farm Do — and Why Does It Matter?

When your car gets totaled in an accident, your insurance company owes you the actual cash value of the vehicle plus certain government-required fees so you can go out and replace it. Those fees — known as “purchasing fees” — include things like sales tax, vehicle registration, tag fees, and ad valorem taxes (a tax based on the value of your property).

The plaintiff in this case, Rochell Brent Dortch, alleged that State Farm breached its insurance policies by failing to pay full purchasing fees on Alabama total loss claims during the class period. Purchasing fees include the Alabama state sales tax of 2% (excluding city tax), any county sales tax amounts, applicable ad valorem taxes and ad valorem refund credit fees, and state, county, and city license fees, tag fees, and school fees.

In plain terms: when Alabama policyholders received a total loss check from State Farm, the lawsuit claims it was short — missing fees the company was contractually obligated to pay. State Farm maintains that it complied with the terms of its insurance policies and applicable law, denies all material allegations, and agreed to settle to avoid the expense and risk of continued litigation.

This settlement is separate from other active State Farm lawsuits around the country. State Farm separately agreed to a $15.6 million settlement after a federal jury found the insurer used software to systematically underpay total loss car claims for approximately 37,000 Arkansas policyholders, with preliminary approval granted in March 2026. The Alabama purchasing fees case is a distinct claim focused specifically on unpaid taxes and government fees.

Related article: $1.2M Posh Group Ticket Fee Settlement, Are You Eligible to Claim? Deadline is July 7, 2026

Who Is Eligible to File a Claim?

You may qualify if all of the following apply to you:

• You may qualify if you were an Alabama policyholder or insured under a State Farm auto insurance policy.
• You may qualify if you submitted a covered first-party private passenger auto physical damage claim between November 7, 2018 and February 10, 2026.
• You may qualify if your claim resulted in a total loss payment from State Farm.
• You may qualify if that payment did not include the full purchasing fees owed — meaning sales tax, county tax, ad valorem taxes, tag fees, and/or school fees were missing or underpaid.

If you received a settlement notice in the mail, it is because State Farm’s records indicate you may be a member of the settlement class. If you believe you qualify but did not receive a notice, you can look up your Class Member ID on the settlement website using your State Farm claim number and policy number.

How Much Will You Receive?

State Farm will pay settlement class members $20.50 in satisfaction of applicable purchasing fees. This is a fixed payment — not pro rata — meaning the amount does not shrink based on how many people file claims.

Attorneys’ fees and costs of up to $261,200 and a service award of up to $5,000 to the class representative will be paid separately by State Farm and will not reduce the amount paid to settlement class members. Your $20.50 is your $20.50, regardless of legal costs.

Allocation	Amount
Payments to Class Members	$1,209,295
Attorneys’ Fees & Costs	Up to $261,200 (paid separately by State Farm)
Class Representative Service Award	Up to $5,000 (paid separately by State Farm)
Administration Costs	TBD

How to File Your Claim — Step by Step

Step 1 — Go to the official settlement website: alabamafeesettlement.com

Step 2 — Click “Make a Claim” and enter your Class Member ID from your mailed or emailed notice. If you do not have your Class Member ID, enter your State Farm policy number and claim number instead.

Step 3 — Confirm your personal details including your name and current mailing address.

Step 4 — Review the pre-filled claim form and verify all information is correct.

Step 5 — Submit the electronic claim form online, or print and mail the blank PDF form to: Dortch v. State Farm, c/o Kroll Settlement Administration LLC, P.O. Box 5324, New York, NY 10150-5324.

Step 6 — Save your confirmation or keep a copy of your mailed form for your records.

Received a pre-filled paper notice in the mail? You can simply sign the claim form included in the mailed notice, tear at the perforation, and mail it back. That counts as a valid submission.

Estimated time to complete: 5–10 minutes.

Key Deadlines at a Glance

Milestone	Date
Preliminary Approval	Granted
Opt-Out Deadline	May 15, 2026
Objection Deadline	May 15, 2026
Claim Filing Deadline	July 15, 2026
Final Approval Hearing	June 15, 2026 at 9:00 a.m. CST
Expected Payment Date	Approx. 120 days after final approval

Frequently Asked Questions

Do I need a lawyer to file a claim? 

No. Filing is free and takes just minutes online or by mail. Class Counsel has already been appointed to represent the class. You do not need to hire your own attorney to receive the $20.50 payment.

Is this settlement legitimate? 

Yes. The Circuit Court of Montgomery County, Alabama authorized this settlement. The official settlement website is alabamafeesettlement.com, managed by Kroll Settlement Administration LLC — one of the country’s largest court-approved settlement administrators. The case number is 03-CV-2024-901729.00.

When will I receive my payment?

 Payments will be issued approximately 120 days after the court grants final approval. With the final approval hearing set for June 15, 2026, you can expect payments to go out in the fall of 2026, assuming no appeals or delays.

What if I missed the claim deadline?

 The claim deadline is July 15, 2026. If you do not file by then, you will not receive a payment. However, you will still be bound by the settlement’s release of claims unless you opted out before May 15, 2026.

Will this settlement payment affect my taxes?

 A $20.50 payment may qualify as taxable income. While the amount is small, you should keep your payment record and consult a tax professional if you have questions about how it applies to your situation.

What exactly are “purchasing fees” and why do they matter? 

Purchasing fees are the government-required costs you pay when you register and title a replacement vehicle — things like Alabama state and county sales tax, ad valorem taxes, and tag or school fees. When State Farm paid out a total loss claim, the lawsuit alleged it left these fees out of the check, meaning policyholders had to cover those costs out of pocket when replacing their totaled car.

Does State Farm admit it did anything wrong?

 No. State Farm denies all allegations and maintains it complied with its policy terms and Alabama law. The company agreed to settle to avoid the time and cost of further litigation.

Can I still sue State Farm separately if I file a claim? 

No. By submitting a claim and remaining in the settlement class, you give up your right to sue State Farm individually for unpaid purchasing fees on your total loss claim. If you want to preserve your right to file a separate lawsuit, you must opt out in writing by May 15, 2026.

Sources & References

1. Official Settlement Website — alabamafeesettlement.com
2. Official Settlement FAQ — alabamafeesettlement.com/faq
3. Claim Form — alabamafeesettlement.com
4. Class Notice PDF — alabamafeesettlement.com

Last Updated: April 14, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.