State Farm, a leading US insurance provider, has agreed to a $20.93 million settlement fund to compensate customers. The agreement resolves a class action lawsuit filed in February 2018, which accused the company of intentional misrepresentation in selling its U Coverage insurance policies to New Mexico motorists.
The settlement covers individuals who purchased State Farm's U Coverage policies in New Mexico between January 1, 2010, and December 31, 2021. Compensation amounts will be calculated based on a percentage of premiums paid, up to 21% for minimum limits and 13% for non-minimum limits.
Customers must submit claims by July 2nd to receive payment. State Farm denies any wrongdoing, and no court has ruled on the merits of the case.