Overview
- Customers are set to receive about $100 per vehicle on average, with amounts varying by state and premium level, covering more than 49 million insured vehicles.
- State Farm has also cut auto premiums by roughly 10% across 40 states, totaling about $4.6 billion in savings, including a 15% rate decrease in Illinois last year.
- The company says no action is required to get the dividend, which will be delivered by check or via a digital payment notification rather than as a policy credit.
- Executives attributed the dividend to stronger-than-expected results in 2025 as collision repair costs eased and accident frequency declined across the industry.
- Homeowners insurance remains pressured, with State Farm reporting about $15 billion in catastrophe claims last year, including roughly $5 billion from the January 2025 Southern California wildfires and a 27.2% rate hike in Illinois facing political pushback.