State Farm Mutual Automobile Insurance Company announced it is issuing one-time cash-back dividends totaling $5 billion to eligible customers following financial results in 2025. Individual payments will be at least $10 for those who qualify, with the insurer citing a stronger underwriting performance than originally expected for the previous year.
The company stated that the disbursement is the largest dividend payment in its history. State Farm President and CEO Jon Farney said in a press release that the company's 2025 performance also allowed for the offering of lower insurance rates during the current year.
To qualify for the payment, a person must have held a personal auto insurance policy through State Farm Mutual at any time during 2025. The company specified that the policy must be for a vehicle; customers with only homeowners, life, or rental property insurance do not qualify for this dividend. Additionally, the calculated dividend amount for the customer must be $10 or more to trigger a disbursement.
Policyholders will notice the change via an email or letter detailing how to claim the funds. Payments are being issued as separate transactions rather than account credits. Those with an email on file will receive instructions for a digital payment or a check, while those without an email will automatically receive a paper check in the mail. The company noted that these payments will not influence future insurance rates, as rates are set based on projected future costs rather than past performance.
The rollout began in late July 2026 and is occurring in waves by state. State Farm expects the entire distribution process to take several months to complete. Customers can check their status through an online payment portal hosted on the company's website. Following this one-time distribution, no further scheduled dividends related to 2025 performance have been reported.