State Farm Mutual Automobile Insurance Company has begun distributing a one-time $5 billion cash dividend to qualifying auto policyholders, the company said.
Millions of customers have already received payments, with more on the way over the coming months
The dividend covers more than 49 million State Farm Mutual auto vehicles. Each customer’s payment is tied to their 2025 premium for a qualifying policy, with the applicable percentage — somewhere between 4% and 10% — determined by which state the policy is held in, the company said. “As a mutual company with a customer-first focus, State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future,” State Farm Mutual President and CEO Jon Farney said in a statement. “That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend.” State Farm said the dividend was made possible by the company’s financial strength and a stronger than expected underwriting performance. As a mutual company, State Farm is owned by its policyholders rather than outside shareholders, which allows it to return surplus funds directly to customers.
State Farm is reaching out to eligible customers through email or mailed letters, and policyholders can also check what they are owed by signing into their account on the State Farm app or website. Payment can arrive as a paper check or electronically, according to KCTV5. Policyholders do not need to take any steps to claim the money.