These changes are subject to state filings for regulatory review and approval as required by law. Once approved, these lower rates will apply to current customers at policy renewal, as well as to new customers.

"Evolving consumer behaviors and pandemic restrictions make it a challenging time for businesses. We continue to find ways to help our customers," said Ken Doss, Actuarial Director.

“Current State Farm trends and data show a considerable decline in claims related to business policies," Doss added.

Rate reductions will vary. Visit with your State Farm agent about individual policies, coverage and opportunities for discounts.

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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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

For faster CUSTOMER response, use these contacts.

“At State Farm, we are committed to offering customers the highest quality products and services at competitive prices,” said State Farm Senior Vice President Phillip Hawkins. “This homeowners rate reduction in Kansas is a result of improved trends and positions us to deliver on our mission to help more people in more ways.”

The rate decrease is effective August 15 for new business and October 1 for renewals.

Overall changes in premiums for individual homeowners will vary depending on the specific details of an individual customer’s policy and chosen coverages. Customers with questions can contact their local State Farm agent to discuss their individual situation.

In addition to this rate reduction, State Farm agents are able to review with new and existing customers the many opportunities for additional discounts that may apply to an individual’s unique circumstances. A rate decrease combined with discounts offers an exceptional long-term value to State Farm customers.

“At State Farm, we are committed to offering customers the highest quality products and services at competitive prices,” said State Farm Senior Vice President Chris Schell. “This homeowners rate reduction in West Virginia is a result of improved trends and positions us to deliver on our mission to help more people in more ways.”

Overall changes in premiums for individual homeowners will vary depending on the specific details of an individual customer’s policy and chosen coverages. Customers with questions can contact their local State Farm agent to discuss their individual situation.

In addition to this rate reduction, State Farm agents are able to review with new and existing customers the many opportunities for additional discounts that may apply to an individual’s unique circumstances. A rate decrease combined with discounts offers an exceptional long-term value to State Farm customers.