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State Farm to pay $2 million to settle complaints over underpaid claims

Insurance company State Farm will pay a $2 million fine to settle complaints that it underpaid drivers’ insurance claims.

Montana’s state auditor found that State Farm paid drivers less than they were owed after accidents. State Auditor Troy Downing said the settlement shows the crucial role citizens can play.

“If we don’t know about it, we can’t investigate it. And so it’s really important that we do get consumer complaints if they’ve been wronged or feel they’ve been wronged,” Downing said.

State Farm denies breaking any state or federal laws as part of the settlement.

The company is in the process of re-evaluating claims from 2018 to the summer of 2022. The company has a year to complete the process. The auditor’s office said State Farm has already paid nearly $1.2 million to Montana drivers through re-evaluation.

In a statement, a spokesperson for State Farm said the company is committed to paying what it owes and will work with the state to satisfy the terms of the settlement.

John joined the Montana Public Radio team in August 2022. Born and raised in Helena, he graduated from the University of Montana’s School of Media Arts and created the Montana history podcast Land Grab. John can be contacted at
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