Hardy v. State Farm Mutual Automobile Insurance Company

A Settlement has been reached in a class action lawsuit called Hardy v. State Farm Mutual Automobile Insurance Company., Case No. 2:25-cv-00072-RSM, pending in the United States District Court, Western District of Washington. 

The Settlement affects the rights of all Washington insureds of STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY (“STATE FARM”) who received payment under their underinsured motorist property damage coverage (“UMPD”) for property damage to their insured automobiles for losses between January 13, 2019, and February 27, 2026 and who meet certain other requirements (see FAQ 5).

The Plaintiffs claim that when certain automobiles sustain damage to their structural systems and bodies, they cannot be fully repaired to their pre-Accident condition, causing the vehicles to suffer a loss in value called “diminished value.” The Plaintiffs allege that STATE FARM, the Defendant, failed to pay or pay adequately for this type of loss under its Washington insurance policies’ UMPD Coverage, a breach of STATE FARM’s automobile insurance contracts. STATE FARM denies these allegations and denies it did anything wrong.

If approved by the Court, the Defendant will pay up to $8,822,039.83 into a Settlement Fund to resolve the case. The Settlement Fund will provide diminished value payments to eligible Class Members who submit a Valid Claim Form as well as the Class Counsel Fees, Service Awards, and costs. STATE FARM will pay the costs of notice and Settlement administration separately.