When will customers receive their dividend check?

Do customers need to do anything to receive their dividend?

Can customers get a credit instead of a check?

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

Why are customers receiving an additional dividend?

How is each customer’s dividend amount determined?

Does State Farm have the resources to offer this dividend credit?

Do customers need active policies to receive a check?

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

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

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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When will customers receive their dividend credit?

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

What type of policies will receive the credit?

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

How much dividend credit will customers get?

How is each customer’s dividend amount determined?

Can customers get a check instead of a credit?

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

Who can customers talk with about payment options for accounts?

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

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

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

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

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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 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.

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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?

• 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.

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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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