I was in a car accident in which a car and mine merged into the same lane at the same time.
State Farm declared the other driver's car a total loss and is only going to pay them what the car is worth. Does that make me responsible for that?
Who does State Farm represent? Are they your insurance company or theirs?
If State Farm is your insurance company, sounds like they declare you at fault and are paying for the other party's damages.
IF State Farm is not your insurance company, then you will have to talk to your carrier about this. If there is a dispute of who merged into the lane of who's, then this will likely go to mandatory arbitration before determining who is at fault, please see: