Class Action Lawsuit Filed Against State Farm Over Total Loss Claim Payments

A class action lawsuit filed against State Farm claims that the insurance company did not pay the correct amount for vehicle total loss claims. 

Plaintiff Craig Brewer filed the lawsuit on October 3 with the North Carolina Middle District Court. According to a report from Top Class Actions, Brewer claims policyholders had their total loss claims calculated and paid by State Farm using a CCC One Report where the retail cost of comparable vehicles was reduced to arrive at a pre-accident value. 

“When valuing vehicle total loss claims, it is improper for insurance companies to undervalue and underpay the claims by manipulating the data used to value the vehicles,” says the lawsuit, according to Top Class Actions. 

Part of Brewer’s argument is that State Farm has exhibited a "systematic and uniform" practice of reducing the retail cost of comparable vehicles. According to Insurance Business America, State Farm faces a similar class action lawsuit in Tennessee. Plaintiff Jessica Clippinger claims that State Farm determined the cash value of totaled vehicles using valuations from Audatex to “reduce payouts based on the assumption that buyers typically negotiate lower prices than those advertised.” 

In 2024, State Farm paid 2.09 million to settle claims from Washington policyholders that State Farm did not fully pay certain vehicle claims after accidents where the vehicles were deemed a total loss. 

Brewer’s representation is Aaron C. Hemmings and Kelly A. Stevens of Hemmings & Stevens PLLC. Judge Catherine Eagles will oversee the case, No. 1:2025-cv-00904, in the North Carolina Middle District Court.