State Farm said Thursday it will return $5 billion to qualifying auto insurance customers.
The windfall would come through a one-time dividend that the company said will begin paying this summer, as insurers face continuing scrutiny over premium increases and record profits.
State Farm said the payments will average about $100 per insured vehicle, though amounts will vary by state and by premiums paid.
Policyholders do not need to take any action to receive the dividend, the company said in a statement to Forbes.
Customers may receive a check or may be notified by email to initiate payment digitally.
State Farm also indicated that the cash back will not be issued as a credit.
State Farm tied the dividend to what it described as strong performance in 2025 and said recent auto rate reductions in 40 states are saving customers about $4.6 billion a year in lower total annual premiums.
The company said it was able to reduce auto rates in part because auto repair costs and collision frequency trended downward in 2025.
In its 2025 financial results, State Farm reported total revenue of $132.3 billion, up from $123.0 billion in 2024, and net income of $12.9 billion, up from $5.3 billion a year earlier.
The company also reported an auto underwriting gain of $4.6 billion in 2025, compared with an underwriting loss of $2.7 billion in 2024.
Auto insurers have faced pressure from regulators and consumers over rate increases driven by inflation, repair costs, and claim severity.
Some companies, however, have moved to stabilize or reduce rates after sharp increases earlier in the decade.
State Farm Plans $5B Dividend for Auto Policyholders
