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State Farm to pay $5 billion dividend to eligible auto policyholders
The insurer says the payout will cover more than 49 million vehicles, with each vehicle’s dividend equal to 4% to 10% of the 2025 premium paid.
State Farm Mutual Automobile Insurance Company will distribute $5 billion in cash dividends over the coming weeks, marking the largest dividend payout in the company’s more than 100-year history, according to Yahoo Finance.
The payments will go to qualifying auto policyholders who held State Farm insurance policies in 2025 and are eligible for $10 or more. The company said the dividends cover more than 49 million vehicles and that eligible customers may receive more than one check.
State Farm says the average dividend is about $100 per vehicle, though amounts will vary by state and depend on the premium paid for each qualifying policy. It also stated each dividend per vehicle will be between 4% and 10% of the 2025 premium, reflecting differences in insurance rates by location.
The insurer said customers with an email address on file will be notified by email with instructions for an online payment portal, while those without email will receive automatic payments by mail. State Farm also noted dividend issuances are in batches by location and may take months to complete, and that premium rates will not be affected by the dividend.