The record dividend payout averages to about $100 per insured car.
State Farm is distributing $5 billion in dividends to its customers who held auto policies in 2025.
If your car was insured by State Farm in 2025, you're in luck: You likely qualify for a dividend payment from the insurance giant.
In February, State Farm announced it was returning $5 billion to auto-policy holders, the largest payout in the company's history. The insurer began distributing dividends in late July, but it's expected to take several months to allocate the full amount to the owners of the more than 49 million vehicles insured by the company, according to a news release.
Payments range from 4% to 10% of the premium paid for the policy, depending on the policyholder's state, and customers can choose to be paid via Venmo, Zelle, PayPal (PYPL) or a physical check, a company spokesperson told MarketWatch. The full payment distribution averages about $100 per insured car, but varies depending on location and premiums paid.
Policyholders will be notified of their pending dividend payment via email or letter and can visit sfdividend.com, call 1-888-808-9532 or contact their agent for more information. Those who don't have an email address registered with State Farm will automatically receive a check in the mail.
Protect yourself from fraud: Never pay a fee or give over a password to get your dividend
Some states are encouraging State Farm customers to stay vigilant against fraud. For instance, the insurance department for the state of New Hampshire - which is receiving $15 million of the dividend distribution, averaging about $80 per insured vehicle - recommends contacting State Farm directly if anything seems fishy before handing over personal or financial information.
Here are a few tips from State Farm spokesperson Michal Brower to ensure policyholders safely receive their payments:
-- Carefully review the sender's email address before opening any links. The email notifying customers of their dividend payments will come from donotreply@e.sfdividend.com.
-- Be wary of communications asking for payment to receive the dividend - "State Farm will not ask you to pay a fee to receive your dividend payment," Brower said.
-- Do not provide any personal passwords, such as your email, banking or digital-wallet passwords.
-- Policyholders will be given a unique ID provided in the dividend-payment selection email to select their payment option.
Are any other major insurers handing out dividends this year?
State Farm is the only major auto insurer to announce a dividend payout, citing its financial strength and a stronger-than-expected underwriting performance in 2025.
It's more common for life-insurance companies to distribute dividends. Companies such as Northwestern Mutual, New York Life and MassMutual have been consistently distributing dividends to customers since the 1800s.
The Moneyist: My son's roof was damaged in a storm, but his insurance won't pay. How can he fight this?
Like State Farm, Northwestern Mutual also announced a historic payment this year: $9.2 billion. However, most life-insurance companies pay dividends to customers around their individual policy's anniversary date, rather than a one-time payout to all policyholders at the same time.
Life insurance policyholders can withdraw their dividends as cash, which is generally not taxed as ordinary income, or use it toward "paid-up" additions, which is additional coverage that increases the total death benefit and can compound to earn even more dividends in the future.
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