This page is specific to State Farm Good Neighbor Relief Dividend. We remain committed to helping you as we respond to the COVID-19 pandemic together. This is current as of July 8, 2020. It will be updated regularly.

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Dividend Frequently Asked Questions

Who will receive a dividend?

  • Every Mutual Auto policyholder with an auto insurance policy in-force between March 20 and May 31, 2020, will receive a dividend. Customers with a Personal Lines Auto, Motorcycle, RV, Business Use Personal Auto, Commercial Auto, School Bus and/or Antique/Classic policy will receive the dividend as a premium credit to their policy.

When will customers receive their dividend credit?

  • We anticipate State Farm Payment Plan (SFPP) customers will receive the credit beginning as early as June but most will see the credit applied to their July bill. Customers not enrolled in the State Farm Payment Plan (SFPP) should see the credit applied at their next renewal. We are crediting customers’ bills at the earliest opportunity after the credit period of March 20 – May 31. Depending on the date of a customer’s renewal, the next bill for some customers may not be until late 2020 or early 2021. By providing this in the form of a credit, we’re able to reduce the amount a customer will need to pay on their next bill in the most efficient and cost-effective way which benefits all customers.

  • For customers with specific questions, we encourage you to reach out to your agent. They’re working with customers one-on-one to explain your bill and provide payment options.


Does an insured have to be with State Farm on March 20 to receive the credit? 

  • No, as long as they are a State Farm Mutual policyholder at some point in time between March 20 and May 31, they will receive the credit.
  • New customers to State Farm will receive this credit for the period of time they are insured with us during this date range.

What type of policies will receive the credit?

  • Customers with a Personal Lines Auto, Motorcycle, RV, Business Use Personal Auto, Commercial Auto, School Bus and/or Antique/Classic policy will receive the dividend.

Do customers need to do anything to receive their dividend credit?

  • No. Credits will be applied automatically.
  • State Farm is not contacting customers requesting financial account or credit card information in order to receive a dividend or a credit. If you receive this type of call, do not provide any personal information. This type of phone scam and other scams are on the rise. Learn how to report suspicious calls and tips for helping protect your information.

How much dividend credit will customers get?

  • Customers can expect to receive a dividend on average of 25 percent of premiums owed during the period March 20 and May 31. This amount will vary from one customer to the next. This works out to about $20 per month for each vehicle insured.

How is each customer’s dividend amount determined?

  • The amount received by each policyholder is a percentage of that policyholder’s premium owed for the period between March 20 and May 31.

Can customers get a check instead of a credit?

  • No. The intent is to provide the dividend in the most cost-efficient manner - applied as a premium credit to outstanding or upcoming bills.

What is the total dividend amount and how was it determined?

  • Up to $2 billion is appropriate based on the claim and driving behaviors during the COVID-19 period. It positions the Company to maintain its financial strength while continuing to serve customers and deliver on the promises we make to be there when the unexpected happens.
  • The amount was determined by indications of lower loss costs due to less driving in this time. State Farm Mutual, as a mutual company focused solely on serving customers, was able to provide this dividend.

Who can customers talk with about payment options for accounts?

  • Customers can talk with their State Farm agent. State Farm agents are working with customers one-on-one to provide payment options. Customers do not need to take any action to receive the dividend.

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 to provide customers short-term solutions while maintaining our ability to remain financially strong for our customers to keep our promises now and in the future.

Does the return of this dividend increase the likelihood that the State Farm Mutual rates will be increased in the near future?

  • No. Future rates are based on expected future costs. The dividend will have no impact on future rates.

Besides the dividend credit, what are other ways customers can save on their auto insurance bill?

  • Customers can talk with their State Farm agent about other ways to save. For example, our Drive Safe & Save® program puts customers in control of their discount. How customers drive determines how much they save – up to 30% or more, and they’ll save just by signing up.

Do customers have to renew their policy in order to obtain the credit?

  • No. Any customer with an in-force policy between March 20 and May 31 will receive a premium credit.

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