- State Farm announced a record $5 billion dividend payout for auto insurance policyholders, the largest in the company's history.
- Eligible customers who held policies in 2025 will receive payouts amounting to 4 to 10 percent of their annual premiums across 49 million vehicles.
- The payout marks State Farm's first auto insurance dividend since 2021, following a multi-year period of high premium rates and lower claim costs.
- Competitor USAA also issued a record $3.8 billion in dividends for 2025 as car insurers recovered financially from previous years.
- Although average auto insurance rates decreased in 39 states in 2025, industry analysts predict rates will begin rising again slightly in 2026.
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