# State Farm Decision Will Have Ripple Effect 

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A recent jury verdict in a class-action lawsuit against State Farm Insurance Company does more than require the nation’s largest auto insurer to pay out millions of dollars to 4.7 million of its policyholders. 

Like a stone tossed into a pond, the ripple effect from the ruling will impact virtually every auto insurer and consumer in the United States. Ultimately, the verdict will hurt the consumers it purports to help—by reducing competition among auto parts manufacturers and increasing the cost of auto repairs and auto insurance.

The jury in this case found that the company had harmed its policyholders when repairing their damaged cars by encouraging the use of generic replacement parts produced by manufacturers who did not originally make the car.