US EditionState Farm Announces $5 Billion Cash Back Dividend For Customers—Here’s How To Claim
- On Thursday, State Farm Mutual announced a $5 billion dividend to auto customers, the largest in its 103-year history, with distributions this summer to qualifying owners of more than 49 million vehicles.
- With auto losses easing, declining auto repair costs and fewer collisions in 2025 enabled State Farm's auto lines to produce a $4.6 billion underwriting gain, supporting the payout.
- State Farm cut rates in 40 states by about 10%, totaling roughly $4.5 billion in lower premiums for auto policyholders, aided by stronger-than-expected underwriting industrywide.
- Policyholders need not take action to receive the dividend, with State Farm auto policyholders getting an average payment of $100 per vehicle by check or digital notice this summer.
- Amid competitive and regulatory pressure, the move echoes insurer rebates like USAA's $3.8 billion payout and Florida regulators' mandated returns, while State Farm's homeowners unit faces underwriting losses from recent catastrophes.
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State Farm will refund $5 billion in dividends to its customers with car insurance: we tell you how much it will be and when it will be distributed
State Farm Announces Record $5 Billion Dividend for Auto Policyholders
State Farm Mutual Automobile Insurance Company—the firm whose famous tag line touts being a “good neighbor”—is paying $5 billion cash back to auto customers through the largest dividend in the company’s history. State Farm announced the move on Feb. 26, along with reductions in auto insurance rates in many states, saving customers nearly $4.6 billion a year. “As a mutual company with a customer-first focus, State Farm Mutual is able to provide v…
Pasadena Star News
San Gabriel Valley TribuneState Farm to pay record $5 billion dividend to auto clients
By Alexandre Rajbhandari | Bloomberg State Farm Mutual Automobile Insurance Co. will pay a $5 billion cash dividend to its auto-insurance customers after posting strong underwriting profits. The payments average $100 per vehicle, State Farm said in a statement. It’s the largest dividend in the company’s 103-year history. “We don’t have shareholders; we don’t have a stock price to protect,” Chief Executive Officer Jon Farney said in a call with r…
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