State Farm is sending payments to millions of qualifying auto insurance customers as part of a one-time $5 billion cash-back dividend — the largest in the company's more than 100-year history.
The payments are being distributed to eligible customers across more than 49 million vehicles insured through State Farm Mutual Automobile Insurance Company. Individual payments are based on a percentage of the premium paid on each qualifying auto policy in 2025.
The percentage varies by state, ranging from 4% to 10%.
Because the dividend covers more than 49 million insured vehicles, State Farm said the nationwide distribution will take several months to complete.
State Farm said the one-time dividend was made possible by the company's financial strength and
better-than-expected underwriting performance in 2025.
“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,” State Farm Mutual President and CEO Jon Farney said. “That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend.”
Here's what to know about who will receive the dividend.
Who will receive the State Farm dividend payment?
Customers with 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.
Customers are encouraged to check their email for their individual payment link, call 1-888-808-9532 or contact their agent for more information, the company said.
How will State Farm customers get paid?
Qualifying customers will receive either an email or letter notifying them that their dividend payment is available.
Customers who already have an email address registered with State Farm will receive instructions for accessing a payment portal, where they can choose between a digital payment or a check, the company said. Those without an email address on file will automatically receive a check through the mail.
Customers with questions about their eligibility or payment can contact State Farm's Dividend Customer Contact Center at 1-888-808-9532 or reach out to their State Farm agent.
How is each customer’s dividend amount determined?
Each customer’s payment is based on a percentage, or between 4% and 10%, depending on the state where the policy is assigned.
Natassia Paloma may be reached at npaloma@gannett.com, @NatassiaPaloma on X, natassia_paloma on Instagram, and Natassia Paloma on Facebook.
This article originally appeared on El Paso Times: State Farm dividend pays out $5B to customers. See who qualifies
