State Farm is issuing a one time policyholder dividend that will return $5 billion to qualifying auto customers, the company announced. The payout covers more than 49 million vehicles insured through State Farm Mutual Automobile Insurance Company.
Individual payments are calculated as a percentage of the premium paid on each qualifying private passenger auto policy in 2025. The percentage varies by state and ranges from 4 percent to 10 percent, the company said.
State Farm said the decision followed better than expected underwriting performance in 2025 and reflected the company’s financial strength. State Farm Mutual President and CEO Jon Farney 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."
Farney added, "That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend," according to the company statement. The firm said the nationwide distribution will take several months to complete.
Who Qualifies And How Payments Are Delivered
Customers qualify if they had an eligible private passenger auto policy issued by State Farm Mutual in force at any time between January 1, 2025 and December 31, 2025. Qualifying customers will receive either an email or a mailed letter notifying them that their dividend payment is available.
Those with email addresses on file will get instructions to access a payment portal. There customers can choose a digital payment or a mailed check. Policyholders without an email address on file will automatically receive a check through the mail, the company said.
State Farm encouraged customers to check email for an individual payment link, call 1 888 808 9532, or contact their agent for details. The company established a Dividend Customer Contact Center to handle eligibility and payment questions.
