State Farm Announces $5 Billion Cash Back Dividend For Customers—Here’s How To Claim

Forbes Business

by Mike Stunson, Forbes Staff

February 26, 2026

AI-Generated Deep Dive Summary

State Farm has made a significant announcement with the largest cash back dividend in its history—a whopping $5 billion to be distributed to automobile insurance policyholders. Customers can expect an average of $100 per vehicle, with payments set to begin this summer. Notably, no action is required from customers; they will either receive a check or an email notification for digital payment options. This dividend follows State Farm's strong financial performance in 2025, marked by total revenue of $132.5 billion—an increase from the previous year's $123 billion—and a notable rise in net income to $12.9 billion from $5.3 billion in 2024. The company has also reduced premiums in 40 states, amounting to $4.6 billion in savings for customers. This move aligns with industry trends where insurers are stabilizing or lowering rates after facing scrutiny over recent premium increases driven by inflation and rising repair costs. The announcement underscores a broader shift within the auto insurance sector, reflecting how companies like State Farm and USAA are prioritizing customer benefits through financial rewards and stabilized premiums. This strategic approach not only addresses past concerns about rate hikes but also highlights the industry's growing focus on returning profits to customers, underscoring both financial strength and a commitment to policyholder satisfaction.

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Originally published on Forbes Business on 2/26/2026