If you had a State Farm auto policy last year, a check may already be in the mail.
State Farm Mutual began issuing a one-time $5 billion dividend to its 2025 auto policyholders on July 31, 2026, the largest in the company’s 100-plus-year history. TIME reported on August 20 that 7.2 million checks had been mailed by then with 3.8 million more scheduled that week, and payments will continue for several months.
Who gets it and how much
- Eligibility: a State Farm Mutual personal auto policy in force at any point during calendar 2025. More than 49 million vehicles qualify.
- Amount: 4% to 10% of the premium you paid in 2025, varying by state. The average works out to about $100 per vehicle, with a minimum payout of $10.
- Delivery: paper checks by mail. State Farm has set up sfdividend.com to explain the program.
CEO Jon Farney said the payout reflects “stronger-than-expected” 2025 results. “State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future,” he said.
Why a mutual pays a dividend
State Farm Mutual is owned by its policyholders, not shareholders. When underwriting results beat plan, as they did in 2025 after two years of rate increases restored auto profitability across the industry, the surplus can go back to the people who paid the premiums. It is the same mechanism Amica uses on its dividend home policies, and the reason mutuals can look expensive on sticker price and cheaper in hindsight.
Watch for the scam
State Farm has warned that it will never ask for a fee, a password or bank details to release a dividend. Anyone calling, texting or emailing about “claiming” your State Farm dividend is not State Farm. The check arrives on its own; if you have moved, update your address with your agent.
Context
State Farm remains the largest auto insurer by policies, with more than 19,200 agent offices and 96 million policies and accounts, though Progressive overtook it on premium volume in 2025. The dividend lands as Insurify reports auto premiums rising again in 32 states, so for many drivers it will roughly cancel out this year’s renewal increase.
See how State Farm compares with the other majors in our best car insurance companies guide.