Topline
State Farm announced Thursday it will pay back $5 billion to its automobile insurance holders on the heels of a strong 2025, with customers set to receive an average of $100 per vehicle.
State Farm announced Thursday it would give customers $5 billion in dividends.
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Key Facts
The insurance company said the record dividend will be paid this summer and the payments will vary by state and premiums paid.
State Farm said in a statement to Forbes policyholders do not need to take any action to receive their dividend, writing that “customers may receive a check directly or may be notified via email to initiate their payment digitally.”
The cash back will not be issued to customers as a credit, State Farm said.
State Farm released its 2025 financial results Thursday and noted “positive performance and financial strength,” especially in total revenue, where it boasted $132.5 billion last year in comparison to $123 billion in 2024.
Its net income increased from $5.3 billion in 2024 to $12.9 billion in 2025.
Key Background
The payout comes as auto insurers, including State Farm, have faced scrutiny over premium increases in recent years driven by inflation and rising repair costs. After sharply rising rates in 2022 and 2023, some insurers began stabilizing or lowering premiums. State Farm said lowered rates in 40 states in 2025 amounted to $4.6 billion in lower premiums for customers. Similarly, USAA said rates in 2026 were expected to keep stabilizing after it announced $3.7 billion in financial rewards during 2025.