State Farm to send $5 billion in dividends to auto customers.

State Farm will issue about $5 billion in one-time dividends to qualifying auto insurance customers this summer, with average payments around $100; the company also said it has reduced auto rates in many states, estimating about $4.6 billion in annual customer savings.

State Farm Mutual announced it will issue about $5 billion in one-time dividends to qualifying auto insurance customers, the largest payout in the company's history. The insurer said the amount reflects its financial strength and stronger-than-expected underwriting performance reported industrywide. The distributions will cover more than 49 million State Farm Mutual auto vehicles and the average payment is about $100, though amounts will vary by state and individual premiums. The company also reported reductions in auto insurance rates in many states, which it estimates will save customers about $4.6 billion a year. Key details: - State Farm Mutual will issue about $5 billion in one-time dividends to qualifying auto customers. - The payouts cover more than 49 million State Farm Mutual auto vehicles and average about $100 per vehicle, with amounts varying by state and individual premiums. - The company said auto customers will receive the dividends in the summer. - State Farm reported it has reduced auto rates in many states, estimating about $4.6 billion in annual customer savings and noting rate reductions in 40 states that average about 10%. - The article cites U.S. Bureau of Labor Statistics data showing motor vehicle insurance costs in cities rose from an index level of 475 in 2016 to 892 in January 2026. - State Farm executives said homeowners insurance faces different pressures, including rising repair and rebuilding costs and higher reinsurance expenses tied to storm activity. Summary: State Farm's announcement means qualifying auto customers will receive one-time dividends this summer and the company says many customers will also see lower ongoing auto rates. The immediate next step the company announced is to begin distributing the one-time payments in the summer. The company also highlighted that homeowners insurance is facing separate cost pressures related to storm damage and reinsurance.