economy
February 26, 2026
State Farm announces $5 billion dividend; $100 average refund coming to car insurance customers
Customers can expect to receive $100 refund on average, though State Farm says it will vary by state and by the amount of premium paid.
TL;DR
- State Farm is distributing a historic $5 billion dividend to its car insurance members.
- Customers will receive an average refund of $100, varying by state and premium paid.
- The dividend is due to State Farm Mutual's financial strength and improved underwriting performance.
- State Farm has also lowered premiums by approximately 10% in 40 states, saving customers $4.6 billion.
- Auto repair costs are declining, and accident frequency decreased in 2025, contrasting with a 50% premium surge over three years.
- Economic pressures are driving consumers to shop for better insurance rates more regularly.
- Competitors like Progressive and USAA have also made significant financial returns to their customers.
- Auto insurance constitutes 63% of State Farm's property and casualty business.
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