The insurance company State Farm has begun sending checks to millions of policyholders as part of the company’s largest-ever cash-back dividend.
Eligible auto insurance customers will receive an average of $100 from the company. Exact amounts depend on the state and the premium paid for each qualifying policy.
More than 7 million checks have been mailed since the company began payments last month, with another 3.8 million scheduled to go out this week. In total, the company will send checks to policyholders of 49 million vehicles.
The payments are not part of a class-action lawsuit or other wrongdoing by State Farm. Instead, “this dividend is possible due to State Farm Mutual’s financial strength and a stronger than expected underwriting performance in 2025,” the company’s website said.
Only auto policyholders will receive the cash as part of a $5-billion payout from the company.
“State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future,” said State Farm President and Chief Executive Jon Farney in a statement. “That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend.”
Customers with a private passenger auto policy in force at any point in 2025 are eligible.
State Farm customers with an email registered with the company will receive email instructions on how to log into the dividend payment portal and select their method of payment. Eligible customers without a registered email will automatically receive a check in the mail.
The dividend payment portal can be accessed at sfdividend.com. The portal will allow customers to elect to receive their payment via Zelle, Venmo, PayPal or a physical check.
The amount paid to each customer is based on a percentage of their policy premium in 2025. Percentages range from 4% to 10% depending on the state. Customers with more than one insured vehicle will receive a separate payment for each policy.
The dividends are being paid out in waves by state, State Farm said.
Decreasing auto repair costs and frequency of collisions have also allowed State Farm to lower auto rates in recent months by an average of 10% in 40 states. Auto insurance customers are saving a total of $4.6 billion as a result of the rates, the company said.
The post Insured with State Farm? They may owe you $100 or more appeared first on Los Angeles Times.
