State Farm is sending customers a share of $5 billion. Are you getting a check?
When you hear a company is paying dividends, it usually refers to a publicly traded firm, like Apple or Nvidia, issuing quarterly payments to its shareholders. But the latest dividend making the news is different: the insurance giant State Farm Mutual, a private company, has announced it will begin issuing a one-time dividend of $5 billion to its customers.
Here’s what you need to know about the State Farm dividend, and if you can expect a check.
What is the State Farm dividend?
The State Farm dividend is a one-time cash payment the company will begin paying out to its auto insurance customers this month. While the dividend is making headlines now, State Farm Mutual actually announced it back in February.
The total amount of the one-time dividend payment equals $5 billion.
“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,” the insurere noted at the time.
In addition to the dividend announcement, State Farm also pointed out that in addition to making the cash payment to its customers, those sme customers were also enjoying reduced auto insurance rates in many states—to the tune of $4.6 billion.
Why is State Farm issuing a dividend to its customers?
While State Farm Mutual is one of the largest and oldest insurers in America, it is not a publicly traded company. Instead, as its name suggests, State Farm is a mutual insurance company. That means that instead of being owned by shareholders, as a private company is, State Farm is owned by its very customers.
So, when State Farm has profits, the company can choose to dole a portion of those back out to its very customers in the form of a dividend, which is a cash payment.
State Farm’s $5 billion dividend isn’t the first time the company has paid out a dividend to its customers, but it is the largest dividend payout in the insurer’s history.
How much is the State Farm dividend?
The total value of the dividend payout is $5 billion, but the payment is being divided among eligible customers who held State Farm auto insurance policies in 2025.
In a notice late last month, State Farm says that individual payments will vary, and they will be calculated based on the premiums a customers paid for each qualifying 2025 policy.
In February, the company said that the average payment is $100 per vehicle. And yes, that means if you had two eligible policies on two different vehicles, you’ll get two dividend payments from State Farm.
Who gets a State Farm dividend payment?
According to the FAQ on the State Farm dividend website, “Customers with a private passenger auto policy issued by State Farm Mutual in force at any point of time between January 1, 2025, and December 31, 2025” are qualified to receive a dividend, provided the dividend payment does not fall below $10.
However, the company notes that “Policies provided through a state assigned risk program” are not eligible for a dividend payment.
How will I get my State Farm dividend payment?
If you are eligible for a payment, you will be contacted in one of two ways.
If State Farm has your email on file, you will receive an email with a link to the digital payment portal, where you can choose to receive your dividend payment digitally or via a check.
If State Farm does not have your email address, the company will mail a physical check to your mailing address on file.
When will I get my State Farm dividend payment?
Due to the massive volume of payments, State Farm is sending its dividend payouts in waves.
State Farm initially said the dividend payouts would begin being sent in late summer, and the company has already begun making good on that promise, according to reports on social media.