State Farm is doling out $100 checks to 49 million customers. Here's who qualifies and how to get paid | Fortune

"State Farm Mutual is able to provide value directly to our customers while maintaining financial strength to keep our promises in the future. That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend."

"The move comes after several years of volatility in the auto insurance market, in which rising repair costs and extreme weather have pushed premiums sharply higher for many drivers. As of this month, the average cost of car insurance in the U.S. is $2,697 per year, according to Bankrate, which calls the cost an uncomfortably high bill for many Americans."

"The company says the payments are a way to share results from a stronger-than-expected year, after earlier periods of steep underwriting losses across the industry. Auto insurers have been squeezed by inflation in car parts, labor, and medical costs, forcing multiple rounds of rate hikes in many states."

State Farm, the nation's largest auto insurer, announced a one-time customer giveback of approximately $5 billion, with payments averaging $100 per vehicle to nearly 50 million policyholders. This distribution reflects the company's largest dividend in its history and follows a stronger-than-expected financial year after periods of steep underwriting losses. The move comes amid years of auto insurance market volatility driven by rising repair costs and extreme weather, which have pushed average U.S. car insurance premiums to $2,697 annually—55% higher than February 2020 levels. Beyond the dividend, State Farm has implemented additional auto insurance rate reductions in many states, saving customers $4.6 billion annually. The company attributes these customer benefits to stabilizing claim costs and its ability to maintain financial strength.

Read at Fortune