Today, State Farm Mutual Automobile Insurance Company (State Farm Mutual) announced that a $5 billion dividend will be distributed to auto insurance customers.

Recent auto insurance rate reductions in many states will have already saved customers $4.6 billion annually, the Bloomington, Illinois-based insurer said.

State Farm Mutual will begin making a one-time distribution to qualifying customers across more than 49 million State Farm Mutual auto vehicles later this year.

The insurer explained the dividend is possible due to its financial strength and a stronger-than-expected underwriting performance.

The payments average $100 per vehicle and will vary by state and premiums paid.

“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. That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend,” said Jon Farney, State Farm Mutual president and CEO.

Downward-trending auto repair costs and collision frequency in 2025 have led to lower auto rates by about 10 percent in 40 states.