State Farm Mutual Automobile Insurance recently began distributing a record $5 billion dividend to qualifying auto insurance customers, marking the largest payout of its kind in the company’s more than 100-year history.
Millions of customers have already received payments, with additional distributions on the way, State Farm said in a July 31 news release.
The dividend is being paid to eligible customers covering more than 49 million State Farm Mutual auto vehicles nationwide.
“Because the distribution covers more than 49 million auto vehicles, the payment process will take several months to be completed nationwide,” the company said.
COSTCO PLOTS MAJOR EXPANSION INTO SENIOR HEALTHCARE WITH MEDICARE PARTNERSHIP
Each customer’s payment is calculated as a percentage of the premium paid for each qualifying policy in 2025.
The percentage varies by state and ranges from 4% to 10%, according to State Farm.
State Farm previously told USA Today that customers who had an active personal auto insurance policy in 2025 are eligible for the payment.
MAJOR PBMS TO BOOST PRESCRIPTION DRUG PRICE TRANSPARENCY THROUGH TRUMPRX
The company said qualifying customers will be notified about a pending payment either by email or through a letter in the mail.
Customers with an email address on file will get instructions to choose how they want to be paid.
Those without an email address on file will receive a check by mail.
The insurer did not specify an exact date for when the payments would be completed.
OBAMACARE EXCHANGE FLAW EXPOSED AMERICANS TO UNEXPECTED HEALTH PLAN SWITCHES, WATCHDOG FINDS
State Farm initially unveiled plans for the $5 billion dividend in February.
“This dividend is possible due to State Farm Mutual’s financial strength and a stronger than expected underwriting performance, which has been reported industry wide,” State Farm said at the time.
FOX Business reached out to State Farm for comment.
Read the full article here
