State Farm to issue $5 billion in auto insurance dividends

One-time payment of about $100 per vehicle driven by lower collision repair costs in 2025

Published on Mar. 10, 2026

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State Farm, the largest auto insurer in the U.S., announced it will issue a $5 billion dividend to its auto insurance customers this summer, amounting to a one-time payment of around $100 per vehicle. The company cited lower collision repair costs in 2025 as the primary driver behind the largest dividend in its 103-year history.

Why it matters

The dividend payout highlights State Farm's strong financial performance and ability to pass along savings to its customers, which is notable in an industry often criticized for high premiums. However, the company continues to face challenges in keeping homeowner insurance rates down due to increasing frequency and severity of storms.

The details

State Farm said the $5 billion dividend will be distributed to its 49 million auto insurance policyholders across the country, with the actual amount varying by state and premiums paid. The company also recently lowered auto insurance rates in 40 states by an average of 10%, amounting to $4.6 billion in premium savings for customers.

  • State Farm announced the $5 billion dividend on February 26, 2026.
  • The dividend payments will be issued to customers this summer.

The players

State Farm Mutual

The largest auto insurer in the United States, providing insurance and financial services products.

Jon Farney

President and CEO of State Farm Mutual.

Chris Schell

Chief Operating Officer of State Farm.

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What they’re saying

“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.”

— Jon Farney, President and CEO, State Farm Mutual (State Farm news release)

“As good as the story is on auto insurance, the story on homeowners insurance is a little bit different.”

— Chris Schell, Chief Operating Officer, State Farm (Chicago Tribune)

What’s next

State Farm said the $5 billion dividend will be issued to customers this summer.

The takeaway

State Farm's ability to provide a historic $5 billion dividend to auto insurance customers highlights the company's strong financial performance and commitment to passing along savings to policyholders. However, the insurer continues to face challenges in keeping homeowner insurance rates down due to increasing natural disaster costs.