State Farm has initiated the distribution of its largest cash-back dividend in company history, sending checks to millions of auto insurance policyholders. The total payout amounts to $5 billion, with eligible customers receiving an average of $100. The specific amount for each individual is determined by the state of residence and the premium paid for the qualifying policy during 2025.
Payments began last month, and more than 7 million checks have already been mailed. An additional 3.8 million are scheduled to be sent out this week. In total, the company plans to issue dividends to policyholders covering 49 million vehicles. The payouts are being processed in waves by state, according to the insurer.
Eligibility is restricted to customers who held a private passenger auto policy at any point during 2025. The dividend is calculated as a percentage of the 2025 policy premium, ranging from 4% to 10% depending on the state. Individuals with multiple insured vehicles will receive a separate payment for each policy.
Jon Farney, State Farm President and Chief Executive, stated that the company is able to provide value directly to customers while maintaining financial strength. He noted that this translated into lower auto rates and the $5 billion policyholder dividend. The company’s website attributed the dividend to State Farm Mutual’s financial strength and stronger-than-expected underwriting performance in 2025.
Customers with a registered email address will receive instructions to access the dividend payment portal at sfdividend.com. Through this portal, they can choose to receive funds via Zelle, Venmo, PayPal, or a physical check. Those without a registered email will automatically receive a check in the mail.