State Farm has begun distributing its record $5 billion dividend to eligible auto insurance customers, with payments being sent in waves by state.
Customers generally qualify if they had an eligible State Farm Mutual personal auto policy at any point during 2025 and their calculated dividend is more than $10.
Payments vary by state and premiums paid, ranging from roughly 4% to 10% of 2025 premiums, with State Farm estimating an average of about $100 per insured vehicle.
State Farm has started returning billions of dollars to its auto insurance customers, and some policyholders are now receiving their share.
The insurer is distributing a one-time $5 billion dividend, the largest policyholder dividend in State Farm's history. The company announced the payment in February after stronger-than-expected financial results in its auto insurance business during 2025. Distribution began this summer and is expected to continue in waves over several months.
The dividend applies to more than 49 million vehicles insured by State Farm Mutual Automobile Insurance Company. State Farm says the average payment will be about $100 per vehicle, although the amount individual customers receive can be considerably higher or lower.
Who qualifies for the State Farm dividend?
According to State Farm, customers qualify if they had an eligible private passenger auto insurance policy issued by State Farm Mutual that was active at any point between Jan. 1 and Dec. 31, 2025. State Farm's FAQ specifies that a customer's calculated dividend must be more than $10.
Customers do not need to still be insured by State Farm to receive the money. Someone who had an eligible State Farm Mutual auto policy during 2025 but has since switched insurers can still qualify.
The dividend is specifically tied to State Farm Mutual's auto insurance results. Customers with only homeowners, renters, life, or other types of State Farm insurance aren't eligible on the basis of those policies.
Eligibility details can vary somewhat by state. For example, Louisiana regulators said the dividend there applies to State Farm Mutual Private Passenger Auto Voluntary Preferred policies that were in force on Dec. 31, 2025. Georgia regulators similarly described eligible policies as Private Passenger Auto Voluntary Preferred policies.
How much will policyholders receive?
State Farm says dividends are calculated as a percentage of the auto premiums a customer paid in 2025. That percentage ranges from 4% to 10%, depending on the state.
That means there isn't a universal $100 check for every customer. The approximately $100 figure is an average per vehicle.
State regulators have already disclosed significant differences. Louisiana customers, for example, are expected to receive an average of about $138 per vehicle, while qualifying Georgia drivers are expected to average roughly $135 per vehicle. In Washington, D.C., the average is approximately $173 per vehicle.
State Farm says the percentage varies because each state's results contributed differently to the company's nationwide underwriting performance in 2025.
How the money will arrive
Customers shouldn't necessarily be watching only their mailbox.
Policyholders with an email address registered with State Farm will receive an email with instructions from payment administrator Veritas directing them to a payment portal, where they can select a digital payment or a check. Customers without an email address on file will automatically receive a physical check through the mail.
The payments are being released in waves based on the state where the policy is assigned, so one State Farm customer may receive a payment weeks or even months before another. State Farm says processing payments covering more than 49 million vehicles will take several months.
The company says the dividend is possible because of its financial strength and stronger-than-expected underwriting performance in 2025. State Farm has also been reducing auto insurance rates in dozens of states, saying reductions across 40 states are saving customers about $4.6 billion annually.
Customers who believe they qualify but haven't heard from State Farm can check their status through State Farm's dividend website, contact their State Farm agent, or call the dividend information line at 1-888-808-9532.