$20.93M State Farm Schwartz UIM Insurance Settlement, Are You Eligible to Claim? Claim Deadline is July 2

State Farm has agreed to pay $20,925,000 to settle a class action lawsuit filed by New Mexico policyholders. The lawsuit claims State Farm failed to properly disclose how its underinsured motorist (UIM) coverage worked when it sold policies between 2010 and 2021. If you held a New Mexico auto or property insurance policy with U Coverage during that period, you may qualify for a cash payment. The claim deadline is July 2, 2026.

Quick Facts

Field	Detail
Settlement Amount	$20,925,000
Claim Deadline	July 2, 2026
Who Qualifies	New Mexico State Farm policyholders with U Coverage, Jan. 1, 2010 – Dec. 31, 2021
Payout Per Person	Up to 21% of premiums paid (minimum limits) or up to 13% of premiums paid (non-minimum limits) — pro rata
Proof Required	No (Unique ID and PIN from notice required)
Settlement Status	Open for Claims — Pending Final Approval
Administrator	Epiq Global
Official Website	schwartzuimclasssettlement.com

What’s Happening Right Now

• The settlement is preliminarily approved and currently open for claims. The final fairness hearing takes place on June 8, 2026.
• Class members who want to opt out or file a written objection must do so by May 18, 2026.
• Payments will go out approximately 90 days after the court grants final approval, or after claim processing finishes — whichever comes later.

What Is the State Farm Lawsuit About?

Dana Schwartz filed this class action in 2018 against State Farm Mutual Automobile Insurance Company, State Farm Fire and Casualty Company, and State Farm General Insurance Company. The case centers on how State Farm sold and explained underinsured motorist (UIM) coverage — the part of your policy meant to protect you when the at-fault driver does not have enough insurance to cover your damages.

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Under New Mexico law, when a driver injures you and their liability policy pays out, that amount gets “offset” against your own UIM coverage limit. This is called the Schmick offset, named after a New Mexico Supreme Court case. The problem, according to the lawsuit, is that State Farm never clearly explained this offset to customers at the time they bought their coverage. Many policyholders paid years of premiums for UIM coverage that, in practice, would pay them little or nothing when they needed it most.

The plaintiff alleged that State Farm’s failure to disclose this violated New Mexico’s Unfair Trade Practices Act, the Unfair Insurance Practices Act, and duties of good faith owed to policyholders. State Farm denies all wrongdoing but agreed to settle to avoid the cost and uncertainty of going to trial.

Who Is Eligible to File a Claim?

• You may qualify if you held a New Mexico insurance policy issued by State Farm Mutual Automobile Insurance Company, State Farm Fire and Casualty Company, or State Farm General Insurance Company.
• You may qualify if your policy included U Coverage (Uninsured and Unknown Motorist Coverage) with a coverage period between January 1, 2010, and December 31, 2021.
• You may qualify if you are the heir, executor, administrator, or successor of an eligible policyholder who has passed away.

You do NOT qualify if:

• You filed a separate lawsuit against State Farm before the notice date specifically about the reduction or denial of benefits based on a Schmick offset.
• You previously settled such a claim and signed a final release before the notice date.

How Much Can You Receive?

Your payout depends on the type of U Coverage you purchased and how much you paid in premiums over the covered period.

Minimum limits policyholders — those who bought the lowest available UIM coverage — can receive a pro-rata cash payment of up to 21% of the premiums they paid for that coverage between 2010 and 2021.

Non-minimum limits policyholders — those who bought higher UIM coverage amounts — can receive a pro-rata cash payment of up to 13% of the premiums they paid during the same period.

The word “pro rata” means the total amount available will be divided proportionally among all approved claimants. If the total claims submitted exceed the fund, individual payouts may be reduced. The settlement fund totals $20,925,000, with up to $4,250,000 going toward attorneys’ fees and $25,000 going to the named plaintiff as a service award.

How to File a Claim

1. Visit the official settlement website at schwartzuimclasssettlement.com
2. Locate your Unique ID and PIN from the notice mailed to you by the settlement administrator
3. Log in and enter your personal details, including your current mailing address
4. Complete the claim form — select your coverage type and confirm your eligibility
5. Submit your claim online before July 2, 2026, or mail a printed claim form to: Schwartz v. State Farm Settlement Administrator, P.O. Box 4359, Portland, OR 97208-4359
6. Save your confirmation number for your records

If you did not receive a notice or need a claim form, call the administrator at 1-877-748-7791.

Estimated time to complete: 5–10 minutes.

Key Deadlines

Milestone	Date
Opt-Out Deadline	May 18, 2026
Objection Deadline	May 18, 2026
Final Fairness Hearing	June 8, 2026
Claim Filing Deadline	July 2, 2026
Expected Payment Date	~90 days after final court approval
Claims Period Opened	April 2026

Frequently Asked Questions

Do I need a lawyer to file a claim? 

No. You do not need an attorney to submit a claim in this settlement. The process is free, and you can complete it online in minutes at the official settlement website. A lawyer is not required to receive your share of the settlement fund.

Is this settlement legitimate? 

Yes. This settlement is a federal court case — Schwartz v. State Farm Mutual Automobile Insurance Company, et al., Case No. 18-CV-00328-KWR-SCY — overseen by U.S. District Judge Kea W. Riggs in the District of New Mexico. Epiq Global, a nationally recognized settlement administrator, manages the claims process.

When will I receive my payment? 

Payments will go out approximately 90 days after the court grants final approval of the settlement, or after claim processing is complete — whichever happens later. The final fairness hearing is scheduled for June 8, 2026.

What if I missed the claim deadline?

 If you miss the July 2, 2026 deadline, you will likely lose your right to receive a cash payment from this settlement. Contact the administrator at 1-877-748-7791 as soon as possible if you have concerns about your submission.

Will this settlement payment affect my taxes? 

Possibly. Settlement payments that compensate for economic losses may be taxable depending on your situation. Consult a tax professional for advice specific to your circumstances. Anthropic and AllAboutLawyer.com do not provide tax advice.

What is a Schmick offset and why does it matter? 

A Schmick offset is a rule under New Mexico law that reduces your UIM payout by the amount you already received from the at-fault driver’s liability insurance. For policyholders who bought the minimum UIM coverage, this offset often made their coverage nearly worthless — meaning they paid premiums for protection that could not realistically pay out. The lawsuit claims State Farm never explained this at the point of sale.

What if the policyholder on the account is deceased? 

Heirs, executors, administrators, and legal successors of eligible policyholders can file a claim on their behalf. Contact Epiq Global at 1-877-748-7791 for guidance on submitting a claim for a deceased policyholder’s estate.

Can I opt out of the settlement? 

Yes. If you want to keep your right to sue State Farm separately over these claims, you must opt out in writing by May 18, 2026. Instructions are included in the official class notice available at the settlement website.

If you want to understand how this case fits into a broader pattern of State Farm insurance disputes, see AllAboutLawyer.com’s full breakdown of State Farm class action lawsuits and what consumers can claim.

Sources & References

1. Official Settlement Website: schwartzuimclasssettlement.com
2. Official Class Notice (PDF): schwartzuimclasssettlement.com/Content/Documents/Notice.pdf
3. Settlement Agreement (PDF): schwartzuimclasssettlement.com/Content/Documents/Settlement%20Agreement.pdf

Last Updated: April 8, 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.