Would an extra $590 cash in your pocket make your day any brighter? To a lot of drivers suffocating under car payments, insurance premiums, and fuel costs, it sure would. Five years ago, an Arkansas woman named Rose Chadwick thought her insurer of nearly three decades had done right by her. Chadwick’s daughter was involved in a crash that left her 2011 Hyundai undrivable. State Farm declared the car a total loss. It cut her a check for just under $4,200. She accepted it without question…at least, at first.

What she didn’t know then was that the payout had been quietly shaved down by software State Farm used

That gap turned out to be the heart of a class action lawsuit that pulled in more than 37,000 other State Farm customers across Arkansas.

In June, a jury sided with them, ruling that the company’s chosen software systematically undervalued cars and shortchanged drivers by more than 10% on average.

The difference in Chadwick’s case amounted to about $600, but she explained that the issue wasn’t the money

It was the principle. She said she never realized she had the right to push back or seek her own appraisal.

Attorneys involved in the case argued that State Farm’s valuation tool skewed results for years, costing drivers across the state millions.

State Farm said it no longer uses that particular software

The company maintained that its approach “reflected industry standards.” It also pointed out that appellate courts in other states rejected similar challenges.

In a statement, State Farm said it always aims to pay what is owed under the policy and reminded policyholders they can request third-party appraisals if they disagree with an initial offer.

The Arkansas verdict adds to growing pressure on insurers over how they value totaled vehicles

Similar lawsuits cropped up in at least 19 states, and regulators are now weighing whether industry-wide changes are necessary.

With car prices climbing and insurance premiums already straining household budgets, these disputes have real financial consequences.

Insurers like State Farm, for their part, face their own financial squeeze

State Farm recently announced a voluntary exit program for employees even after raising auto premiums to offset mounting homeowner claim costs.

Rising repair bills, extreme weather, and high claim volumes left large insurance companies scrambling to balance payouts with profitability.

For drivers, don’t assume the first offer is the final word

Asking how your insurer calculated the payout, negotiating if you’ve invested in upkeep, and getting an independent appraisal can all help ensure you’re not leaving money on the table.