State Farm has begun issuing payments to millions of its insured drivers, the company recently announced. The payments are part of a $5 billion “one-time distribution” in cash, considered the largest in the company’s more than 100-year history, for more than 49 million auto insurance custom ers, according to the announcement published on State Farm’s website. According to the company, eligible customers will be notified about the pending payment by email or letter. Customers are being asked to keep an eye out for these communications, as they will include instructions on how to access the payment portal and choose their preferred payment method: digital payment or a check. Although payments will vary by state and premiums paid, they are expected to average $100 per vehicle, the company said in its initial announcement in February of this year. The payment process is expected to take several months to complete nationwide. Who will receive the payment? Payments will be sent to customers who had a personal auto insurance policy issued by State Farm Mutual that was active at any point between January 1, 2025, and December 31, 2025, provided that the corresponding payment is at least $10, the minimum amount required for processing. Policies issued through a state-assigned risk program do not qualify. For more information, you can call the Dividend Customer Contact Center at 1-888-808-9532, visit sfdividend.com, or contact your agent for additional information. Why is State Farm sending out money? On its portal, the company explained that the dividend is possible “thanks to its financial strength” and “better-than-expected underwriting performance in 2025.” “As a customer-focused mutual (insurance) company, State Farm Mutual can deliver value directly to our customers while maintaining the financial strength needed to fulfill our promises in the future. This year, that translated into lower auto rates and cash returns in the form of a $5 billion dividend to policyholders,” State Farm Mutual President and CEO Jon Farney said in a statement. ...read more read less