If you’re a State Farm customer in Washington and another driver’s insurance didn’t cover the damage to your car, State Farm may owe you a little more for that crash. The settlement summaries put the average at about $625.
It won’t show up on its own. You have to file a claim form by December 14.
What happened
When an underinsured driver hits you, the part of your own policy called underinsured motorist property damage coverage, UMPD for short, pays to fix your car. A Washington lawsuit, Hardy v. State Farm, claimed State Farm didn’t properly pay one piece of the loss under that coverage.
The piece at issue is diminished value: the money your car loses at resale because it now has a wreck on its history. The body shop can make the fender perfect. The next buyer still pays less for a car that’s been in a wreck.
State Farm agreed to an $8.82 million settlement. Payments come out of the net fund in proportion to your repair cost, so a bigger repair means a bigger check. If State Farm already paid you some diminished value on that claim, your share shrinks by that amount.
Check whether you’re in
You’re likely in the class if State Farm issued your auto policy in Washington and paid you under UMPD for an accident between January 13, 2019 and February 27, 2026. The repair estimate had to hit $1,000. The car had to be no more than six model years old with under 90,000 miles, and the damage had to involve the frame, bent sheet metal, or body and paint work.
Leased cars and totaled cars are out.
Notice how narrow that is. Newer, low-mileage cars with real body damage. That’s the profile of a car with plenty of resale value left to lose.
Do this now
Dig up the claim date and the repair estimate. Then file at the official settlement site, WashingtonUMPDSettlement.com, or by mail to Kroll Settlement Administration. The deadline is December 14, 2026.
Don’t wait for the October 30 approval hearing. Filing now costs you nothing, and the money only goes out to people who filed.
Then file this away for the next crash. Whoever pays to fix your car, ask about diminished value in writing before you sign off on the claim. If the other driver was at fault, our guide to diminished value claims walks through who pays. If the other driver had no insurance at all, read which coverage to run the claim through before you call. Shopping for a new policy in the state? Start with our Washington car insurance page.
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