BLOOMINGTON — State Farm is announcing up to a $2 billion dividend to its auto insurance customers, the Bloomington-based company said Thursday. It is the single largest dividend paid to customers in company history.
With coronavirus stay-at-home orders, many people are driving less, the company said, so "we're returning value to customers as we anticipate fewer auto claims."
The dividend will appear as a credit on customer auto policies. The move follows similar decisions this week by Allstate, USAA, Geico and Farmers.
On average, the company said, 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.
“State Farm is returning value through a dividend to our customers,” State Farm Chairman, President and CEO Michael L. Tipsord said in a statement. “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.”