Refund For State Farm Policyholders
Back in March, State Farm had announced that auto policyholders would be receiving a refund for the first time since 2000. When it is all said and done, State Farm will have paid out roughly $1.25 billion in dividends back to their auto customers.
The average dividend will be about $35 per insured vehicle but that will vary significantly based on your location and premiums paid in 2006. Keep an eye out for your renewal statements as well as the mailbox, as amounts less than $15 will be credited to your renewal premium but if your dividend is greater than $15 then you will receive a check in the mail.
According to the announcement from State Farm, dividend payments will begin to be sent out in April and continue throughout the year. As a State Farm customer myself, I will be on the lookout for my refund.
Michael Tipsord, Vice Chairman, Treasurer and Chief Financial Officer at State Farm mentioned,
At State Farm, we work hard to be good stewards for our policyholders and to provide them the very best combination of product, price, service and financial stability. One way we provide value to State Farm Mutual auto policyholders is to pay dividends to them when financial results and business conditions permit. Our customers’ safe driving habits have contributed to our positive underwriting results, and we are delighted to pass along the benefits from those results to them.
As a note, policyholders in Delaware, Louisiana, Mississippi, New Jersey, Alberta and Ontario will not receive dividend payments. If you’d like additional information, please take a look at State Farm’s Auto Policyholder Dividend announcement.