By Blake Jackson
Kentucky has reached a settlement with State Farm over allegations that the insurance giant failed to adequately inform customers about coverage available under their auto insurance policies. As part of the settlement, State Farm will pay $1.35 million to the state and take steps to improve its notification policies and claim procedures.
Terms of the Settlement
- State Farm will pay $1.35 million to the state of Kentucky to reimburse the cost of its investigation.
- State Farm has enhanced its notification policies, conducted staff training on revised claim procedures, and implemented a database search tool allowing customers to identify available coverages easier.
- State Farm agreed to “use its best efforts” to begin the process of providing multi-car policies in Kentucky.
State Farm's Response
State Farm has denied any wrongdoing but has agreed to the settlement terms. The company has also said that it is committed to providing its customers with the best possible service.
Decline in Catalytic Converter Theft Claims
In other State Farm news, the company has reported a decline in catalytic converter theft claims in the first half of 2023. Data released by State Farm in October revealed that it paid $41.7 million in catalytic converter theft claims during the first six months of 2023, down from $50 million in the same period last year.
Photo Credit: gettyimages-stockseller_ukr
Categories: Kentucky, General