Washington drivers insured by State Farm whose cars were repaired after a crash and paid for under the policy’s underinsured-motorist property damage coverage can file for diminished value, the loss in resale price a repaired car carries. Summaries of the settlement put the average payment at about $625. Claims are due December 14, and the judge holds the final approval hearing this Friday, October 30.
Four tests the car has to pass
The class is narrower than all State Farm customers. According to OpenClassActions’ summary of the notice, it covers Washington-issued State Farm Mutual policies where vehicle damage was paid under that coverage, called UMPD, for a loss between January 13, 2019 and February 27, 2026.
The repair estimate, including supplements, must total at least $1,000. The car must have been no more than six years old, counting the model year plus five, and under 90,000 miles when the accident happened. The damage must have involved structural or frame damage, deformed sheet metal, or body or paint work.
Leased vehicles and total losses are excluded. Claims limited to glass, tires or a sound system do not qualify. A driver with more than one qualifying accident files a separate form for each one, according to Top Class Actions.
The test most drivers cannot answer from memory is whether their old payout came under this coverage. UMPD stands for underinsured motorist property damage coverage. The coverage is the line to find on an old payout letter or claim file, and the Class Member ID printed on the settlement notice is what an online claim uses.
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The case is Hardy v. State Farm Mutual Automobile Insurance Company, No. 2:25-cv-00072-RSM, in the U.S. District Court for the Western District of Washington before Judge Ricardo S. Martinez. The suit claims State Farm failed to properly pay diminished value on certain vehicles with structural or body damage. State Farm denies the allegations.
Diminished value is the drop in a car’s market price caused by its accident history, even after a proper repair. A buyer who sees a collision on the vehicle report offers less. Class counsel are Stephen M. Hansen of the Law Offices of Stephen M. Hansen and Scott P. Nealey of Nealey Law.
What the suit says State Farm left out, and what $8.8 million buys
State Farm agreed to a claims-made fund of up to $8,822,039.83. The settlement’s official website says State Farm pays notice and administration costs separately. Claims-made means money goes out only for claims actually filed, not as a fixed pot divided among everyone.
OpenClassActions explains the formula: the number of class-list claims times $800, minus a $3,757,160.17 credit for diminished value State Farm already paid, capped at the fund. That works out to roughly 15,700 claims. The $625 average is an estimate, and the real amount depends on repair costs and how many valid claims arrive.
Payments shrink in three cases. A driver with a prior accident gets half the formula amount. Any diminished value State Farm already paid is subtracted. And the same comparative fault percentage State Farm applied to the original payout applies again. OpenClassActions lists lawyers’ fees of up to $1,890,584.96, costs of up to $10,000 and $10,000 for each of two class representatives, all paid out of the fund first.
Filing by December 14 without a receipt
Claims can be filed online or on a paper form postmarked by December 14, the official site says. An online claim uses the Class Member ID from the notice that Kroll Settlement Administration mailed. The site states plainly that “you must submit a Claim Form to receive a payment.” Payment is by paper check, according to Top Class Actions.
No receipts, repair estimates or photos are required. A claimant answers three sworn yes-or-no questions: whether there were other accidents while the driver owned the car, whether there was an accident before the driver owned it, and whether the car was leased. Then the claimant prints and signs a name. A missing answer or signature draws a deficiency notice, and the claimant has 60 days to fix it, according to OpenClassActions.
The phone number for Kroll is 833-930-0261. The official site lists the same number along with a contact form and a mailing address in New York.
What happens at Friday’s hearing
The deadline to opt out or object passed on September 30. The final approval hearing is October 30 in Seattle, listed by OpenClassActions at 11:00 a.m., though the settlement site says the date and time may change. The court has not yet decided whether to approve the settlement, and a claim can be filed before it does.
The December 14 date is the one on the notice for a driver who qualifies. The open question for a driver is whether an old payout letter shows the coverage line.
Does an old State Farm payout letter name the coverage?
A State Farm payout from years ago may not say UMPD anywhere a driver would remember, and the claim window closes December 14. Without the Class Member ID or the payout letter, a driver who qualifies can lose a payment that averages about $625.
The Settlement & Refund Recovery System includes the four-date rule for reading a settlement notice, so the hearing date, the opt-out date and the December 14 claim date are not confused. It also has a step-by-step filing walkthrough and a claim log and payment tracker, with a section on claiming when the paper trail is gone.
Get the notice-date guide and filing checklist for the State Farm claim →
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
