State Farm to issue $100 average refunds to car insurance customers: What to know
FILE - A State Farm logo is seen in front of a State Farm insurance office on February 03, 2025 in Larkspur, California. The company says it's giving refunds to car insurance customers in summer 2026. (Photo by Justin Sullivan/Getty Images)
State Farm refunds
What we know:
In a press release issued Thursday, the insurance giant said the cash back for customers is thanks to "financial strength and a stronger than expected underwriting performance, which has been reported industry wide."
Timeline:
The one-time refunds will be issued this summer.
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What we don't know:
State Farm hasn’t said exactly when or how the refunds will be issued.
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," Jon Farney, State Farm Mutual President and CEO, said in a statement.
How to shop for car insurance
What you can do:
According to the Insurance Information Institute, consumers are encouraged to get at least three different quotes from different types of insurance companies before selecting a policy. Also, comparing costs before buying a car could help give customers a better sense of the true cost of owning a specific car. Premiums are based in part on a car’s price, along with prospective repair costs and safety data.
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Customers should be aware of deductibles – the amount of money that a driver is responsible for paying toward a claim – and how they help determine monthly premium costs. Higher deductibles usually mean lower premiums.
You can usually save money by bundling multiple policies under one insurer. This is common for homeowners using the same company for their home and auto policies. There may also be discounts for insuring more than one vehicle under the same company.
The Source: This report includes information from State Farm, the Insurance Information Institute and The Associated Press.