“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.

As driving behaviors evolve during the COVID-19 pandemic, State Farm continues to identify ways to support customers. Based on current trends, State Farm is working to reduce auto rates in every state. The national average for those rate reductions is 11%, saving customers a total of approximately $2.2 billion. Rate changes in some states are subject to regulatory approval and customer rate reductions will vary based on their individual renewals.

“Current State Farm driving data and claims experience show a considerable decline in miles driven and fewer accidents,” said State Farm Senior Vice President Kristyn Cook-Turner. “As a result, we’re looking for ways to continue supporting our customers while we monitor and adjust to trends.”

These planned rate reductions of approximately $2.2 billion nationally, are in addition to an evolving Good Neighbor Relief Program in which State Farm previously announced up to a $2 billion dividend, flexible customer payment options and philanthropic relief. Together, State Farm auto customers should see about $4.2 billion in savings.

Customers can experience additional savings by signing up for Drive Safe & Save™, which includes a premium discount for participation. Customers are encouraged to visit with their State Farm agent about individual policies, coverages and other discount opportunities.

Customers do not need to take any action to receive this dividend, which will appear as a credit on their auto policy.

The dividend is part of the Good Neighbor Relief Program that also includes customer payment options and neighborhood philanthropic relief. This is the single largest dividend paid to customers in our company’s history. As the national leader in auto, home, and individual life insurance, State Farm has the financial strength necessary to help millions of customers and communities recover from the unexpected.

On average, State Farm Mutual auto customers can expect to receive a credit of about 25 percent of premium for the time period March 20 through May 31; exact percentages will vary by state. Every State Farm Mutual auto insurance customer will receive credits applied against bills beginning as early as June. We’ll continue to monitor our loss experience and respond appropriately.

“State Farm is returning value through a dividend to our customers,” said Chairman, President and CEO Michael L. Tipsord. “We insure more cars than anyone and we see from our claims activity people are driving less. This dividend is one of the ways we’re working to help our customers during this unprecedented situation.”

We’re committed to giving back not just to our customers, but to communities where we live and work by providing $5 million in donations across the country. These efforts are in direct response to COVID-19 and are focused on relief and recovery efforts.

State Farm is here to help our customers in these challenging times. We are making decisions that balance short-term solutions with maintaining our ability to remain financially strong for our customers to keep our promises now and in the future.

We encourage customers facing financial challenges to call their State Farm agent. Agents are working with State Farm customers one-on-one providing payment options.

Media Contact ONLY: Angie Harrier – angie.harrier.i4v5@statefarm.com

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