State Farm sending billions in refund checks to customers

State Farm is sending out refund checks to millions of customers as part of its largest-ever dividend distribution. The insurer announced a $5 billion dividend, with over 7.2 million checks already mailed since July 31. Another 3.8 million payments are scheduled to go out this week.

“

More than 7.2 million checks have been mailed since payments began on July 31, with another 3.8 million set to go out this week.

Eligibility extends to policyholders who had an auto insurance policy in force at any point during 2025. Those with an email address on file will receive an email with instructions to choose between a digital payment via Zelle, Venmo, or PayPal, or a physical check. Customers without an email on file will automatically receive a check by mail.

“

Customers with an auto insurance policy in force between Jan. 1, 2025, and Dec. 31, 2025, are eligible for a refund.

The average refund amount is approximately $100 per vehicle. The exact amount varies based on a percentage of the premium paid for each qualifying policy in 2025, ranging from 4% to 10% depending on the state. The distribution process is being conducted in waves by state and is expected to take several months to complete.

“

The average refund size will be $100 per vehicle.