On Average Most Customers Will See a 25% Policy Credit
In an effort to help customers during these challenging times, State Farm Mutual Automobile Insurance Company, the nation’s largest auto insurer, is announcing up to a $2 billion dividend that will go to its auto insurance customers. With schools and businesses closed, and many of us sheltering in our homes, people are driving less right now, so we’re 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 our company’s history. As the national leader in auto, home, and individual life insurance, State Farm has the financial strength necessary to help millions of customers and communities recover from the unexpected.
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. We’ll continue to monitor our 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.”
We’re committed to giving back not just to our customers, but to communities where we live and work by providing $5 million in donations across the country. These efforts are in direct response to COVID-19 and are focused on relief and recovery efforts.
State Farm is here to help our customers in these challenging times. We are making decisions that balance short-term solutions with maintaining our ability to remain financially strong for our customers to keep our promises now and in the future.
We encourage customers facing financial challenges to call their State Farm agent. Agents are working with State Farm customers one-on-one providing payment options.