State Farm on Thursday announced a historic $5 billion dividend for its car insurance members, including a refund to all Mississippi drivers using the auto insurer.
“This dividend is possible due to State Farm Mutual’s financial strength and a stronger than expected underwriting performance, which has been reported industry wide,” the company said in a statement, noting the dividend is the largest in its 103-year history.
The announcement said customers nationwide can expect to receive a roughly $100 refund on average, but refunds will vary by state and premiums paid. The Mississippi Insurance Department confirmed in a news release that Mississippi policyholders will receive a share of more than $70.5 million, averaging about $124 per vehicle.
Refunds will only go out to policyholders who had an active account policy as of Dec. 31, 2025.
“This announcement is welcome news for Mississippi drivers,” Mississippi Insurance Commissioner Mike Chaney said. “Returning millions of dollars directly to policyholders, on top of meaningful rate reductions, translates into real relief for consumers. Actions like this help stabilize the auto insurance market while ensuring companies remain financially sound and able to meet their long-term obligations to policyholders.”
As Chaney referenced, as part of State Farm’s dividend announcement, the insurer also reported lowering premiums by about 10% across 40 states, totaling $4.6 billion in lower costs for customers.
State Fam noted in its announcement that it will continue to monitor trends across the motor vehicle industry – such as auto repair costs, claims frequence, and accident rates – to “take appropriate action” when considering future premium adjustments.