Like a good neighbor, State Farm is giving its policyholders some cold, hard cash as a thank you for their patronage.
The company announced in February that it is issuing one-time payments from a $5 billion dividend to qualified customers, the largest in the insurance company’s 100-plus-year history.
Eligible customers insuring an estimated 49 million vehicles through State Farm Mutual are eligible, and each payment is based on a percentage of the premium paid for each qualifying policy in 2025.
Those percentages range from 4% to 10% of the 2025 premium paid, depending on state underwriting performance. People who switched to a different insurer in 2026 are still eligible as long as they had a State Farm policy at any time in calendar 2025.
“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,” said Jon Farney, president and CEO of State Farm Mutual. “That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend.”
How to get a piece of the State Farm dividend
State Farm began notifying customers a month ago, and according to CBS News, the company has mailed more than 7.2 million checks since payments began on July 31. Another estimated 3.8 million are expected to be mailed this week, State Farm says.
To get your piece of the pie, State Farm Mutual customers who held a policy at any time between Jan. 1 and Dec. 31, 2025, should have already received an email from “[email protected].” If it’s not in your inbox, check your spam folder.
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Customers who have received the email are given instructions on how to log into the State Farm dividend payment portal and select their preferred method of payment. The email should contain unique ID/pin information that will be used to verify your identity.
Customers who don’t have an email address registered with the company should receive their check automatically in the mail.
For those using the web portal, make sure you double check to make sure you are not clicking on a spoofed link or any other type of scam that seeks your information. State Farm emphasizes that the company will not ask you to pay a fee to receive your dividend and will also not ask you for your personal email password, banking password, digital-wallet password, or any other personal password.
You could qualify for a one-time payment from State Farm.
How much money will you get?
While $5 billion sounds like a lot of money, State Farm insures about 49 million vehicles across the country.
So the average refund size will be $100 per vehicle, though the exact amount customers will receive will vary based on the percentage of the premium they paid for each qualifying policy. Percentages vary by state, ranging from 4% to 10%.
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The dividend percentage varies based on each state’s contribution to State Farm Mutual’s nationwide underwriting performance in 2025 and financial strength over time, according to the company.
For those who would rather have some policy cost relief instead of the money, the dividend is not transferable. So you can’t get a credit instead of a dividend payment, and State Farm won’t lower your rate instead of a payment.
Policyholders with questions about the payments can access information at sfdividend.com or by calling 1-888-808-9532.
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