DEALING WITH STATE FARM ON ACCIDENT CLAIMS
State Farm Auto Accident Claims
State Farm is the largest private auto insurance company in the U.S. and State Farm is the 2nd largest auto insurance carrier in Maryland. Our lawyers have handled thousands of auto accident claims with State Farm and we know exactly what you can expect when dealing with this insurer.
It is hard to make blanket generalizations on dealing with State Farm for settlement. Their reasonableness on auto accident claims tends to vary from adjuster to adjuster. Some adjusters are eager to try to settle accident claims for fair value. Others are more difficult and will require a lawsuit to get a reasonable settlement or verdict.
U.S. AUTO INSURANCE MARKET SHARE
State Farm is more likely to let a case go to trial than any other insurance company in Maryland
Go to Trial if You Want a Better Offer from State Farm
One thing we can say for certain is that matter no what adjuster you have State Farm’s settlement offer will invariably increase as litigation moves forward. One reason for this is that State Farm’s in-house attorneys tend to be more reasonable than its adjusters. This reasonableness stems in part from having to try the case to a jury, as opposed to just sitting in your office pronouncing the value.
State Farm, like most insurance companies, uses a computer system called TEACH to assist in placing an amount of money damages on personal injury accident claims. This program regularly spits out settlement value ranges that are far below the fair value of the claims.
Scouting Report on State Farm Claims
Adjusters Vary
Claims adjusters at State Farm tend to vary in terms of how reasonable they are on claims. Certain adjusters take a very hard line approach on claim value and settlement. Meanwhile other adjusters seem very eager to settle and get the claim off their active list. State Farm seems to be okay with either approach.
Harder on Small Claims
State Farm tends to take a hard line approach on smaller claims with less serious injuries. Some insurers are more than willing to settle a small claim for fair value just to get rid of it. But State Farm seems to be more aggressive at keeping costs down by not overpaying in small claims.
Willing to Litigate
Usually, the only way to get a fair offer from State Farm is to file suit. As the case moves forward the gradually become more and more reasonable. However, State Farm is more than willing to call your bluff and take a case to trial. In fact, State Farm takes more cases to trial in Maryland than any other insurance company.
Pragmatic Defendant
Some insurance companies dig in and become very stubborn if forced to litigate. State Farm tends to be a much more practical and is always willing to settle if it makes sense. This is partly because their outside counsel in Maryland (Timothy Smith and Associates) curbs the aggression of their adjusters.
Good Things About State Farm Claims
State Farm is more willing to take auto cases to trial compared to any other insurance company. But there are three nice things about dealing with this insurer:
- UIM Checks Before Trial: In first party uninsured/underinsured motorist cases, it will write a check for the last settlement offer it makes before trial, which is an incredibly reasonable policy that demonstrates some loyalty to its policyholders.
- Pays Excess Verdicts: in another show of policyholder loyalty, it is quick to pay excess verdicts that are over its policy limits if its insured is sued.
- Fast & Efficient Processing: State Farm runs a pretty efficient shop in these cases, at least in Maryland and the District of Columbia. They will provide you a quick response to your request for a status of your demand package and typically generate a settlement offer faster than most insurance companies.
Our primary complaint with State Farm is that it does not offer a fair value settlement to resolve the claim without a lawsuit.
State Farm’s In-House Counsel
State Farm’s in-house accident claims counsel is Timothy Smith and Associates, in Lanham, MD. We have found these lawyers reasonable, but often restricted by orders from State Farm.
Settlement Value of State Farm Accident Cases
If you have an auto accident claim against State Farm, the best way of evaluating the potential value of your case is by looking at how much State Farm paid in prior cases involving similar circumstances. The table below shows recent verdicts and publicly reported settlements for State Farm accident cases. Every case is somewhat different, but the results in these cases are still indicative of what you can reasonably expect from State Farm.
State Farm Settlements & Verdicts in Maryland Accident Cases
YEAR / VENUE
CASE / INJURY SUMMARY
RESULT
2019 – Baltimore County
Torn meniscus (knee) sprained foot, sprained leg, bruised right hip.
$50,000 – Verdict
2019 – Baltimore City
Failure to yield on left turn (§ 21-402), State Farm contests liability claiming its insured driver had the right of way. Case goes to trial and jury awards $70,000 for moderate injuries.
$70,000 – Verdict
2019 – Baltimore County
Shoulder sprain, neck sprain, thoracic outlet syndrome.
$10,000 – Verdict
2018 – Baltimore City
Head-on collision. Plaintiff sought UIM benefits for synovitis (small toe), lower leg bruising, chest pain, and right shoulder pain.
$30,364 – Verdict
2018 – PG County
Rear end collision. Plaintiff suffers herniated discs with radiculopathy requiring surgery. Injury results in partial disability rating. State Farm claims that injuries were pre-existing and refuses to settle.
$120,000 – Verdict
2018 – Baltimore City
Plaintiff suffers multiple herniated discs (with radiculopathy). Undergoes spinal fusion surgery but still has numbness and an 18% disability rating. State Farm refuses to settle, claiming injuries were pre-existing.
$120,000 – Verdict