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State Farm dividend checks are in the mail: See if you qualify for a payout
State Farm says the payments will reach more than 49 million auto customers and range from 4% to 10% of qualifying premiums.
On Tuesday, State Farm began distributing a one-time $5 billion cash-back dividend to qualifying auto insurance customers, marking the largest payout in the company's more than 100-year history.
State Farm Mutual President and CEO Jon Farney attributed the payout to stronger-than-expected 2025 underwriting performance, which also enabled the company to offer lower auto rates this year.
Individual payments are calculated as a percentage of 2025 premiums, ranging from 4% to 10% depending on the state, with payments distributed across more than 49 million insured vehicles and a $10 minimum to qualify.
Qualifying customers will receive an email or letter with instructions to select a digital payment or check, though State Farm expects the nationwide distribution process to take several months due to volume.
State Farm confirmed the retrospective dividend will not affect future auto insurance rates, which are determined using expected future costs and other risk factors; customers with questions can contact the Dividend Customer Contact Center at 1-888-808-9532.