Bloomington, Ill.,
10
March
2021
|
20:41 PM
America/Chicago

California Policyholders 2021 Dividend FAQs

Who will receive a dividend?

  • Every California State Farm Mutual private passenger vehicle policyholder* with an auto insurance policy in-force between June 1, 2020 and December 31, 2020, will receive a dividend. Customers with a Personal Lines Auto policy including Personal Lines Auto, Motorcycle, Business Use Personal Auto, Antique/Classic will receive the dividend in the form of a check.

    *Insurance coverages written pursuant to any residual market or assigned risk programs are exempt

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When will customers receive their dividend check?

  • We anticipate customers will start seeing these checks as early as May, 2021.

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Do customers need to do anything to receive their dividend? 

  • Checks will automatically be mailed to customers.

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Can customers get a credit instead of a check?

  • At this time we are only able to provide this dividend in the form a check.
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What is the total dividend amount and how was it determined?

  • In total, California State Farm Mutual Auto customers with a private passenger auto policy will receive approximately $400 million in returned premium. On average, customers can expect to receive approximately 18% of their premium for the time period June 1, 2020 through December 31, 2020.
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Why are customers receiving an additional dividend?

  • State Farm Mutual realized better than anticipated claims results in California during 2020. Our approach remains the same – to continue to monitor driving trends and make adjustments based on driving behaviors.

    As a mutual organization, when financial results and business conditions permit, State Farm may decide to pay dividends to policyholders.

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How is each customer’s dividend amount determined?

  • The amount received by each policyholder is approximately 18% of that policyholder’s premium for the period June 1, 2020 through December 31, 2020. The average dividend is approximately $100 per policy. All eligible customers will receive at least $10.
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Does State Farm have the resources to offer this dividend credit?

  • We have the financial strength necessary to help millions of customers recover from the unexpected. We made this decision while maintaining our ability to remain financially strong for our customers to keep our promises now and in the future.
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Do customers need active policies to receive a check?

  • No. Any California State Farm Mutual auto customer with an in-force policy between June 1, 2020 and December 31, 2020 will receive a dividend check. If a customer had a policy with us for only a portion of that date range, they will receive a pro-rated credit for the period of time they were insured with us.
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Does the return of this dividend increase the likelihood that the State Farm Mutual rates will be increased in the near future?

  • The dividend will have no impact on future rates. Future rates are based on expected future costs. Generally, dividends return premium to customers when actual experience is better than anticipated. They are a ‘look back’ at how actual results played out, while rate changes allow us to respond to anticipated future trends based on past loss experience.
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Do customers have to renew their policy in order to obtain the credit?

  • No. Any California State Farm Mutual auto customer with an in-force policy for the time period June 1, 2020 through December 31, 2020 will receive the dividend.
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