With customers more willing than ever to jump ship for a better deal, insurance companies are finding ways to lower rates, offer discounts and, in State Farm’s case, hand out cold hard cash to existing customers. Are you eligible to get part of the $5 billion dollars in dividend checks?
Car Insurance Rates
Car insurance rates have been soaring since the pandemic. But now, some drivers insured by State Farm could soon receive a share of the company’s profits, tied to those higher premiums. The news comes as loyalty in the insurance industry declines in response to those surging rates.
In 2025, the number of customers who re-shopped car insurance hit a record high of 57%, according to a J.D. Power analysis. Even Rates of switching rose among customers thought to be the most likely to stay put, those who bundle multiple policies with one insurer.
Here’s the Deal
With customers more willing than ever to jump ship for a better deal, insurance companies are finding ways to lower rates, offer discounts and, in State Farm’s case, hand out cold hard cash to existing customers. Here’s everything we know so far about the dividend checks, including eligibility criteria and payment amounts.
Dividend checks and rate cuts coming for millions of State Farm customers
In February, State Farm announced $5 billion total in cash back payments to car insurance policyholders, the largest dividend payout to customers in the company’s history. The exact dollar amount each eligible customer will get will vary, but State Farm says the average check will be $100 per vehicle.
The major insurance provider is in a good position to offer these payouts. Consistently ranking as one of the most popular car insurance companies, State Farm reported an underwriting gain in 2025 of $1.5 billion. The last three years were losses prior to last year. The gain came despite losses in its home insurance segment and was driven almost entirely by growth in car insurance policies.
Lower Premiums are Coming
Alongside dividend checks going out to customers, the company also announced lower premiums. The rate cuts announced will result in $4.6 billion in savings nationwide, with each eligible customer seeing an average of 10% lower premiums. Still, it’s always worth shopping for car insurance ahead of each renewal to make sure you’re getting the best deal available for the coverage you need.
Even with a 10% rate cut at State Farm, you still might find better rates elsewhere. Insurers are competing on price in a market where customers are more willing than ever to switch. There’s no harm done by shopping around. In the worst-case scenario, taking a few minutes to compare quotes before renewing will confirm you’re getting the best price for your car insurance.
Who is eligible for a dividend check from State Farm?
According to State Farm, 49 million insured vehicles qualify for the one-time payouts expected to arrive this summer. As mentioned, the average payout will be $100 per car, but the exact amount you get depends on the state you’re in and the amount you pay in premiums.
For example, in Oklahoma eligible customers are those who have an active private passenger auto policy as of December 31, 2025. And the dividend payment those customers will receive will amount to 10% of the premiums paid during a predetermined period, for an average of about $112 per car.
Look for a Summer Payday
The company has not yet specified exactly how or when customers will get paid, but a spokesperson told CBS that payments will go out this summer. More details will be announced in the coming months and confirmed that the cash payments will not come in the form of a statement credit.
This article will be updated as more details come to light to make sure anyone eligible has the information they need to get their payout.
Source: Kiplinger©
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