On average most customers will receive a $100 check per policy
State Farm Returning $400 Million Dividend to California Auto Customers
Due to better than anticipated claim results, State Farm is returning $400 million to California mutual auto insurance customers. The dividend applies to approximately 3.5 million private passenger auto policies in California. Through this dividend, customers can expect to receive a check of 18% of premium, or averaging about $100 per policy, for the time period June 1 to December 31, 2020.
“State Farm is once again returning value to our California customers while remaining financially strong to keep our promises now and in the future,” said Tom Conley, Sr. Vice President, State Farm. “This additional dividend is another way we’re making adjustments based on driving behaviors to minimize impacts and help our customers.”
Last year, State Farm announced the Good Neighbor Relief Program, which included a dividend for the period of March 20, 2020 to May 31, 2020 as well as auto rate cuts in every state. Together, these actions provided $4.2 billion in savings for State Farm customers. California State Farm auto customers received an average 27.5% dividend and 6.5% auto rate reduction.
Customers do not need to take any action to receive this dividend, which will be mailed in the form of a check as early as May.
The mission of State Farm is to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams. State Farm and its affiliates are the largest providers of auto and home insurance in the United States. Its 19,200 agents and 57,500 employees serve approximately 85 million policies and accounts – which includes auto, fire, life, health, commercial policies and financial services accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 36 on the 2020 Fortune 500 list of largest companies. For more information, please visit http://www.statefarm.com.