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In the coming months, State Farm Automotive customers could receive a refund through the $5 billion in dividends paid by the insurance company.
State Farm Mutual Auto Insurance Company announced on February 26 that it will pay back $5 billion to customers through dividends starting this summer.
According to the International Risk Management Association, a policyholder’s dividend is a return, or payment, of the policyholder’s premium. These dividends result from income that exceeds losses and expenses.
State Farm’s dividend was made possible by the company’s “financial strength and better-than-expected underwriting performance,” the news release said.
How much money can State Farm Automotive customers get back?
Payments average about $100 per vehicle and vary by state and premium paid, according to a news release.
In its announcement, State Farm also shared that auto customer rates will decline by about 10% in 40 states by 2025 due to lower auto repair costs and crash frequency.
Who is eligible for the $100 State Farm payment?
State Farm auto customers with personal auto insurance policies in effect in 2025 will receive payments, according to a State Farm statement obtained by USA TODAY. The insurer said the dividend will be paid to owners of more than 49 million vehicles across its network.
The insurer has not said exactly when customers will receive payments this summer. USA TODAY has reached out to State Farm for more information.
Editor’s note: This story has been updated to include new information.
Greta Cross is USA TODAY’s national trends reporter. Story ideas? Email her at gcross@usatoday.com.
