By Daily Mail (U.S.) | Created at 2026-08-19 15:01:52 | Updated at 2026-08-19 15:12:39
18 minutes ago
State Farm auto insurance customers should keep an eye on their mailboxes, because a bonus check is on the way.
The insurance giant has begun distributing a $5 billion cash-back dividend to millions of qualifying auto insurance customers, in what it says is the largest payout in the company's more than 100-year history.
The money is being distributed across more than 49 million qualifying State Farm Mutual insured vehicles, with individual payments calculated as a percentage of the premium customers paid on eligible policies in 2025.
The percentage varies depending on the state, ranging from 4 percent to 10 percent of the qualifying premium.
For example, someone who paid $2,000 in qualifying premiums could potentially receive between $80 and $200, depending on their state and policy.
The company is sending payments in waves, meaning eligible customers may receive their money at different times. State Farm says the nationwide distribution will take several months to complete.
And there is no need to file a claim or fill out a special application to receive the money.
Eligible customers with an email address registered with State Farm will receive instructions by email on how to access the company's dividend payment portal and choose between a digital payment and a physical check.
The insurance giant State Farm has begun distributing a $5 billion cash-back dividend to millions of qualifying auto insurance customers
The payout is possible because State Farm Mutual is a mutual insurance company, meaning it is owned by its policyholders rather than outside stockholders
Those without an email address on file will automatically receive a check by mail. Customers can also check their payment information through the official dividend portal.
State Farm says the legitimate dividend email will come from '[email protected],' and warns customers to be particularly careful about scams. The company will not ask customers to pay a fee to receive their money or request passwords for email, banking or digital wallets.
The payout is possible because State Farm Mutual is a mutual insurance company, meaning it is owned by its policyholders rather than outside stockholders.
That structure dates back to the company's beginnings more than a century ago. State Farm was founded in 1922 by George J. Mecherle, an Illinois farmer-turned-insurance agent who believed farmers were being unfairly charged for auto insurance because policies did not adequately reflect their lower driving risks compared with city motorists.
He set out to create an insurance company based on what he believed was fairer, risk-based pricing.
The company's first policy was issued on June 7, 1922, and State Farm later expanded beyond auto insurance into areas including life insurance, home and property coverage and financial services.
Today, State Farm says it has more than 19,200 agent offices and over 62,000 employees, serving more than 96 million policies and accounts. It remains one of America's biggest providers of auto and home insurance.
State Farm Mutual President and CEO Jon Farney says the $5 billion dividend is one way it is returning value directly to policyholders
The company says its famous 'Good Neighbor' philosophy remains central to its business - and the $5 billion dividend is one way it is returning value directly to policyholders.
'As a mutual company with a customer-first focus, State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future,' said State Farm Mutual CEO Jon Farney.
The dividend follows recent auto insurance rate reductions that State Farm says are already saving customers billions of dollars annually.
Importantly, receiving the cash-back payment will not cause your future insurance premiums to rise.
State Farm says the dividend is retrospective, based on premiums paid for qualifying policies in 2025. Future rates are calculated separately according to expected costs, claims trends and other factors.
For customers wondering whether they qualify, the key requirement is having a qualifying State Farm Mutual auto policy covered by the dividend program during 2025.
The exact payment depends on the premium paid and the applicable percentage in the customer's state.
If you are eligible, State Farm says you do not need to do anything to trigger the payment. Keep an eye on your inbox or mailbox, or check the official dividend portal for information about your individual payout.
