State Farm Mutual Automobile Insurance Company (State Farm Mutual) today announced it is paying $5 billion cash back to auto customers through a dividend, in addition to recent auto insurance rate reductions in many states already saving customers $4.6 billion annually.
This summer, State Farm Mutual will begin making one-time distribution to qualifying customers across more than 49 million State Farm Mutual auto vehicles. This dividend is possible due to State Farm Mutual’s financial strength and a stronger than expected underwriting performance, which has been reported industry wide. As a mutual company, State Farm® is uniquely positioned to provide value directly to customers rather than shareholders. The payments average $100 per vehicle and will vary by state and premiums paid.
“As a mutual company with a customer-first focus, State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future. That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend.” – Jon Farney, State Farm Mutual President and CEO.
In addition to the dividend, downward trending auto repair costs and frequency of collisions in 2025 have allowed State Farm Mutual to lower auto rates in 40 states in recent months, by an average of 10 percent, with premium savings to consumers of $4.6 billion. We will continue to monitor these trends and continue to take appropriate action.
For over 100 years, the mission of State Farm has been to help people manage the risks of everyday life, including investments in research that turns knowledge into protection – making driving safer and smarter for everyone. To that end, State Farm launched a national distracted driving awareness program, grounded in the company’s consumer research, to help further reduce the number of accidents and make roads safer.
First Appeared on
Source link
Leave feedback about this