In this photo illustration, the State Farm Insurance logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
If you’re a State Farm Mutual Automobile Insurance Company auto insurance customer, you may have some money coming your way as the company begins a one-time $5 billion cash-back dividend to qualifying customers.
By the numbers:
State Farm says the dividend is being distributed in waves to more than 49 million State Farm Mutual Automobile Insurance Company (State Farm Mutual) auto customers, and it's the largest dividend distribution in the company’s 100-plus-year history.
The company says customer payments are based on a percentage of the premium paid for each qualifying policy in 2025, with percentages varying by state and ranging from 4% to 10%. State Farm will notify qualifying customers of their pending dividend payment by either email or letter with the process taking several months to be completed nationwide due to the millions of customers who qualify.
What they're saying:
"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. That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend," said State Farm Mutual President and CEO Jon Farneyin a release.
Dig deeper:
State Farm says the dividend payments are retrospective and do not affect future auto rates, which are based on expected future costs and monitoring trends to appropriately match price to risk.
Largest auto insurance companies in the US
According to data compiled by Lending Tree from the National Association of Insurance Commissioners (NAIC), State Farm is the largest auto insurance company in the country by market share, followed by Progressive, Geico and Allstate.
The Source: This article includes information from State Farm and Lending Tree. This story was reported from Orlando.