State Farm Announces Record $5 Billion Dividend for Auto Policyholders

Payments to qualifying customers will average $100 per vehicle and may vary by state and by the premiums paid.

A sign is posted in front of a State Farm office in Pinole, Calif., on Jan. 3, 2024. Justin Sullivan/Getty Images

State Farm Mutual Automobile Insurance Company—the firm whose famous tag line touts being a “good neighbor”—is paying $5 billion cash back to auto customers through the largest dividend in the company’s history.

State Farm announced the move on Feb. 26, along with reductions in auto insurance rates in many states, saving customers nearly $4.6 billion a year.