By Fox23.com News Staff
State Farm Mutual has announced that it is paying $5 billion cash back to auto customers through a dividend.
Starting this Summer, State Farm will make a one-time distribution to qualifying customers across more than 49 million auto vehicles covered by the insurance company.
The company states the payments will average to $100 per vehicle, but the exact amount will vary by state and premiums paid.
“As a mutual company with a customer-first focus, 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.” said Jon Farney, State Farm Mutual President and CEO in a statement.
State Farm has recently announced auto insurance rate reductions in several states.
