State Farm is giving back to its auto insurance customers in a big way this summer. The company announced a $5 billion dividend that will be paid out to qualifying policyholders, making it the largest payout in its history. This one-time payment will cover more than 49 million vehicles insured by the company, with an average of about $100 per vehicle, though the amount will vary depending on where you live and your policy details.
This move comes after State Farm lowered its auto insurance rates in 40 states recently. Those rate cuts are already saving customers roughly $4.6 billion annually. The company pointed to factors like lower auto repair costs and fewer collisions in 2025 as reasons to reduce rates.
State Farm said this windfall is due to its strong financial position and better-than-expected results from underwriting auto policies. Since State Farm operates as a mutual company, it can give excess earnings straight back to the policyholders instead of shareholders.
Jon Farney, State Farm’s president and CEO, said that being a mutual company helps them focus on customers first. This year, that focus led to both lower rates and a big cash dividend. The insurer plans to keep an eye on claim trends to adjust prices as needed in the future.
Beyond giving customers money back and cutting rates, State Farm is also investing in programs to make driving safer. They’ve launched a nationwide campaign to reduce distracted driving based on research within the company. The goal is to prevent accidents and keep roads safer for everyone.
State Farm is the biggest provider of auto and home insurance in the U.S., serving over 96 million policies through nearly 19,200 agents and 65,000 employees. This recent announcement reflects a shift in the auto insurance market after years of rising costs tied to inflation, supply problems, and higher claims.
For State Farm customers, the message is clear: 2026 is shaping up to be a year of real savings and rewards for safe driving.