State Farm Is Returning $5 Billion to Customers. Here's Who Gets a Dividend

State Farm auto insurance customers are reporting online that they are beginning to receive dividend payments announced in February.

The insurance company is returning $5 billion to qualifying customers due to "stronger-than-expected underwriting performance in 2025," according to State Farm. (That generally means claims cost the insurer less than it modeled when it priced premiums.) In a recent news release, State Farm confirmed it has begun issuing payments for what it's calling the largest cash-back dividend in the company's history.

"As a mutual company with a customer-first focus, State Farm Mutual is able to provide value directly to our customers," State Farm CEO Jon Farney said.

State Farm also reminded people that the distribution will take time — possibly months.

In part because it's being delivered well after the fact, the State Farm rebate has already caught customers by surprise.

"I was getting the PDF of my new car insurance card to print from the State Farm website, and noticed a link about dividends. I clicked it, and lo and behold, State Farm had a good year and is actually disbursing dividend checks to policyholders," an Oregon driver wrote in a post to the subreddit r/Frugal Saturday. "Mine was $75 and change!"

How to track your State Farm dividend

State Farm has set up a car insurance dividend payment portal at sfdividend.com.

Customers can log in by entering their Dividend ID and PIN or by entering their name and policy number. The site should return a payment amount and estimated date, according to Reddit users.

In the thread over the weekend, some commenters shared that they had already received and cashed their checks, while others were still waiting. (Eligible customers can also choose to be paid via PayPal, Venmo or Zelle.)

The dividends vary by state, with amounts ranging from 4% to 10% of premiums paid last year. The percentage "reflects the cost of risk and underwriting results in each state," according to the news release.

On Reddit, users reported dividends of various amounts: $10, $26, $50, $77, $87, $99, $145, $152, etc. A user said they received over $300 in total for three policies — and they weren't the only one. "Holy cow! I’m getting 319 bucks back!!" another wrote.

When will your State Farm refund arrive?

When you're paid depends on where you live, as the payments are being sent out in waves. If you haven't received notice of a dividend yet, hang tight and watch your inbox. The company is sending emails and letters with more information to customers.

"Because the distribution covers more than 49 million auto vehicles, the payment process will take several months to be completed nationwide," State Farm said.

Customers who are unable to access the dividend payment website can try contacting their State Farm agent for more information. A dividend distribution helpline can also be reached at 1-888-808-9532.

This isn't State Farm's first time issuing dividends, nor is it the only insurer to return money to customers as auto insurers' costs have eased. State Farm said earlier this year that it was lowering rates by an average of 10% in 40 states, citing "downward-trending auto repair costs and collision frequency."

Still, some people feel the prices remain high.

"Getting over $200 back. However, I don't want to talk about my monthly bill. It's essentially going straight back to them," one Reddit commenter wrote.