Average Refund of $100 Per Vehicle
About 49 Million Drivers Eligible Based on 2025 Policies
State Farm, the nation’s largest auto insurer, has begun distributing $5 billion in policyholder dividends, the largest payout in the company’s history.
In a news release issued Aug. 18, the insurer said it started sending dividend payments last month to eligible auto insurance customers. The distribution marks the biggest policyholder dividend since the company was founded more than 100 years ago.
Policyholder dividends are refunds of a portion of insurance premiums when premium income exceeds claim payments and operating expenses. State Farm first announced the $5 billion dividend program in February and has now begun issuing payments.
Eligible customers will receive an average of about $100 per insured vehicle, although the actual amount will vary depending on the state where the policy was issued and the customer’s premium.
The dividend is available to customers who maintained an active personal auto insurance policy during 2025. State Farm estimates that owners of more than 49 million vehicles nationwide will qualify for the payment.
Customers who are eligible will receive notification by email or mail. The company has not announced when the distribution will be completed but said payments are being issued on a rolling basis.
Customers with questions can contact the State Farm Dividend Customer Contact Center at 888-808-9532 or visit sfdividend.com for additional information.
State Farm said the dividend reflects its mutual insurance structure, under which excess earnings remaining after claims and operating expenses are returned to policyholders rather than outside shareholders. The company said the record payout demonstrates its commitment to sharing financial success directly with its customers.
