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State Farm has begun issuing $5 billion in dividends to customers who held auto insurance policies with the company in 2025.
The company did not break down payments by state but said 49 million customers will receive between 4% and 10% of their 2025 insurance bills back, depending on state regulations. State Farm is the largest insurer in California.
Payments average $100 per vehicle, State Farm said. It’s the largest dividend in the company’s 100-year history.
Here’s what you need to know:
Why is State Farm paying dividends?
State Farm is a mutual insurance company, meaning it is owned by policyholders rather than shareholders, so surplus funds are returned directly to customers.
The company credited its strong financial position and stronger than expected underwriting performance in 2025 for the dividend payments.
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Who qualifies for a dividend?
Anyone who held an eligible private passenger auto policy issued by State Farm Mutual Automobile Insurance Company in force at any point of time between January 1, 2025, and December 31, 2025, can receive a dividend, the company said.
Dividends that fall below a minimum processing cost threshold will not be issued.
How do I receive my dividend?
Thousands of payments have already gone out and the remainder will be issued in waves, State Farm said.
Customers with a registered email address will receive an email inquiring about how they’d like to receive their payments.
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Those without a registered email will receive a check by regular mail.
Call 1-888-808-9532 or contact your agent for more information.