Washington drivers may be eligible for a payment under an $8.82 million proposed settlement with State Farm over alleged unpaid diminished value after covered vehicle repairs. The case is Hardy v. State Farm Mutual Automobile Insurance Company in the U.S. District Court for the Western District of Washington. State Farm denies wrongdoing, and the settlement still requires court approval.
Who may qualify
The notice describes State Farm insureds whose Washington-issued policies covered repairs under underinsured motorist property damage coverage. The repair estimate, including supplements, must have been at least $1,000. At the time of the accident, the vehicle must have been no more than six years old and have had fewer than 90,000 miles. The vehicle also must have had structural damage, deformed sheet metal, or required body or paint work. Leased vehicles and total-loss vehicles are excluded. Qualifying accidents must have occurred from January 13, 2019 through February 27, 2026.
What the settlement may pay
Payments are not fixed. After court-approved fees, costs and service awards are deducted, each qualifying claimant's share is calculated using that class member's repair costs compared with the aggregate repair costs of all settlement class members. The notice says the average payment will likely be about $625, but that estimate is not guaranteed. A prior diminished-value payment from State Farm reduces the settlement payment.
How to file a claim
A completed and signed claim form is required. It may be submitted online or mailed, and a separate form is required for each qualifying accident. The deadline is December 14, 2026. The supplied notice does not say whether supporting records must accompany the form, so claimants should follow the form's own instructions carefully.
The deadline to opt out or object is September 30, 2026. The final approval hearing is scheduled for October 30, 2026 at 11:00 a.m. in Seattle. Payments would be sent only after final approval and any appeals are resolved.