Summary
State Farm Mutual is giving $5 billion back to its auto insurance customers as dividends, the biggest in its history. The company is also lowering its auto insurance rates across many states, which will save customers around $4.6 billion each year.
Key Facts
- State Farm Mutual will distribute $5 billion to its auto insurance customers in the form of dividends.
- This is the largest payout in the company's history.
- The payouts are due to the company's strong financial results and better-than-expected performance in underwriting.
- The average dividend payment will be about $100, but this will vary depending on the state and individual insurance premiums.
- State Farm has reduced auto insurance rates in many states, projecting collective savings of $4.6 billion annually.
- The company has cut rates by an average of 10% in 40 states, due to declining auto repair costs and fewer car accidents.
- Rising auto insurance costs have been reported, nearly doubling since 2016 according to the U.S. Bureau of Labor Statistics.
- State Farm's President mentions the company can offer these savings while keeping financially strong.
