State Farm Mutual returning $2 billion dividend to auto insurance customers
In an effort to help customers during these challenging times, State Farm Mutual Automobile Insurance Company is announcing up to a $2 billion dividend that will go to its auto insurance customers.
The insurance company noted that with schools and businesses closed, many are sheltering in their homes and driving less. For that reason the company is returning value to customers as we anticipate fewer auto claims.
Customers do not need to take any action to receive this dividend, which will appear as a credit on their auto policy.
The dividend is part of the Good Neighbor Relief Program that also includes customer payment options and neighborhood philanthropic relief.
This is the single largest dividend paid to customers in the company’s history.
On average, State Farm Mutual auto customers can expect to receive a credit of about 25 percent of premium for the time period March 20 through May 31. Exact percentages will vary by state. Every State Farm Mutual auto insurance customer will receive credits applied against bills beginning as early as June. The company said it will continue to monitor the loss experience and respond appropriately.
“State Farm is returning value through a dividend to our customers,” said Chairman, President and CEO Michael L. Tipsord. “We insure more cars than anyone and we see from our claims activity people are driving less. This dividend is one of the ways we’re working to help our customers during this unprecedented situation.”
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