Eligible State Farm customers could receive $10 (or more): What to know

(NEXSTAR) – If you had State Farm auto insurance at any point last year, you may soon be getting at least $10 in payment after a “stronger-than-expected” performance in 2025.

The State Farm Mutual Automobile Insurance Company announced last month that one-time cash-back dividend payments, totalling $5 billion, would be sent out to qualifying customers.

The insurer reported stronger underwriting performance in 2025 than it expected, leading to the largest dividend payment disbursement in its history. State Farm was also able to offer lower rates this year, President and CEO Jon Farney said in a press release.

Despite the size of the dividend payment pool, you shouldn’t expect a huge payout.

Which State Farm customers will receive payments?

State Farm said customers across more than 49 million vehicles it insured in 2025 are receiving payments.

To qualify, you need to have had a personal auto insurance policy through State Farm Mutual at any time last year.

Your payment also needs to be worth at least $10.

How much could you receive?

If you’re getting a payment, it’s at least $10. State Farm said only customers whose “dividend amount is $10 or more” will qualify.

To determine how much your amount is, State Farm is considering the premium you paid on each qualifying policy last year. Your payment is a percentage of the premium, but that percentage varies by state. It will be somewhere between 4% and 10%, State Farm says.

Why will some customers get more than others?

This depends on two factors: how much of the premium you paid last year, and the state in which you live.

Because the dividends are a percentage of the premium, and that percentage ranges between 4% and 10% based on the state you live in, your payment could be far less than someone who lives just across the state lines from you.

While State Farm didn’t immediately respond to Nexstar’s inquiry regarding the percentages being applied to each state, the company notes online that it “varies based on each state’s contribution to State Farm Mutual’s nationwide underwriting performance in 2025 and financial strength over time.”

Still, as mentioned above, if you’re getting a payment, it will be at least $10.

How and when are payments being sent out?

State Farm said late last month that payments were starting to roll out to qualifying customers. If you’re set to receive a dividend, you should receive an email or letter alerting you about the process of claiming your payment,

Dividends are only available as a separate payment, coming in a digital format or a check in the mail. If you have an email address linked to your account, you’ll receive instructions on how to claim the digital option or a check. If there’s no email address on your account, you will receive a check in the mail automatically.

Payments are going out in waves by state, with the entire process expected to take several months, according to State Farm.

What else should you know about the State Farm dividends?

These payments are only for qualifying customers (or former customers, as long as you were insured for part of last year) with auto policies. You don’t qualify if you have State Farm insurance for your house, life, or rental property, for example.

You can view the online payment portal on State Farm’s website.

And no, the dividend will not influence rates, according to State Farm.

“Rates are based on expected future costs,” State Farm explained. “The dividend is calculated based on 2025 financial results.