State Farm insurance office. Photo: Diego M. Radzinschi/ALM
State Farm auto policyholders will receive an average of $100 per vehicle as part of a $5 billion refund issued by the insurer.
The refunds will go out to policyholders of 49 million vehicles sometime this summer. Amounts will vary based on policyholder location and premium amount.
State Farm says the refunds are possible due to the company's financial strength and stronger than expected underwriting performance.
"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," said Jon Farney, State Farm Mutual president and CEO, in a statement. "That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend."
State Farm has not said whether the refunds will be in cash or some other form. A spokesperson told CBS News the refund would not be issued as a credit and that more details will be released in the coming months.
Oklahoma Insurance Commissioner Glen Mulready praised the refunds in a statement. For Oklahoma policyholders with a State Farm auto policy in force as of Dec. 31, 2025, the refund will average about $112 per vehicle, affecting one million policyholders in the state.
"This is excellent news for Oklahoma policyholders," Mulready said. "When insurers perform well and maintain strong underwriting discipline, it creates opportunities like this to benefit customers directly. A dividend of this size demonstrates financial stability, responsible rate management and a commitment to returning value to policyholders. At a time when families are carefully managing their budgets, an average of $112 per vehicle can make a meaningful difference. We welcome actions that reward consumers and reflect a healthy, competitive insurance marketplace in Oklahoma."
Other insurers have also issued refunds in recent months. Progressive is set to pay $1 billion, in cash or policy credits, to its Florida customers because of a state law that requires insurers to return excess profits. In 2025, USAA paid $3.8 billion in "financial rewards" to its members, issued as distributions, dividends, bank rebates and rewards.
Photo credit: Diego M. Radzinschi/ALM
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