State Farm shells out $5 billion in dividends to auto customers

State Farm is shelling out $5 billion in payments to its auto insurance customers.

The Illinois-based insurer called it the largest (dividend) in the company’s 100-plus-year history," per a news release. The payments, which were announced in late July, are being issued in waves for over 49 million State Farm Mutual vehicles.

The process is expected to take several months, and millions of customers with private passenger auto policies have accepted their allotments already.

Each payout is based upon a percentage — ranging from 4% to 10% — of the premium paid for qualifying policies in 2025, according to State Farm.

State Farm is a mutual insurance company, which means it's made up of members, instead of shareholders. "If financial results are favorable and the board approves it, one option available is for the company to issue dividends or credits to policyholders," the insurer explained on its website.

"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," President and CEO Jon Farney said in a statement. "That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend."

The company noted that this is a one-time occurrence, attributing the dividend to "positive performance in the auto business in 2025.

State Farm is the No. 1 insurer for private passenger auto in Washington, followed by Progressive at No. 2 and Allstate Insurance Company at No. 3, according to the National Association of Insurance Commissioners.

Tips for payouts

So is a payment headed your way?

Eligible customers will receive an email from [email protected] or a notice in the mail.

Those with a registered email will get instructions on how to log into the payment portal at sfdividend.com. State Farm encourages customers to monitor their spam folders.

It warns that temporary portal access issues have been faced by Xfinity and Spectrum users.

Once in the portal, customers can choose to receive the payment either digitally or by check. It cannot be given in the form of a policy credit. Electronic payments are expected to take two to four weeks.

Customers without a registered email will get a mailed check.

Those with multiple eligible policies will collect multiple payments.

The insurer warns against scams, emphasizing that you do not need to settle a fee for your payment nor do you need to provide personal passwords.

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