Navarro Announces State Farm Rate Cuts and $5B Dividend Distribution

One-time distribution to qualifying customers across more than 49 million State Farm Mutual auto vehicles.

Dover, DE (October 1, 2026) — The Delaware Department of Insurance is sharing important information for consumers following State Farm Mutual Automobile Insurance Company’s announcement of a $5 billion national dividend, the largest distribution in the company’s history. The company has also filed rate reductions in 40 states, including Delaware, that total $4.6 billion in national savings.

As a mutual company, financial dividends are provided to policyholders, rather than shareholders, when the company’s investments and underwriting perform well. Positive financial performance also helps the company to lower premiums for policyholders.

This dividend will be paid directly to eligible auto insurance customers and may arrive either digitally or by paper check, depending on the communication preferences State Farm has on file. In Delaware, approximately 256,000 vehicles are eligible for a dividend payment. The average for payments is $142 per vehicle in Delaware, with payments in the state totaling $36 million.

“State Farm’s historic dividend represents a significant return of value to its auto policyholders, and we want Delaware consumers to have clear, accurate information about how and when these payments will arrive,” said Insurance Commissioner Trinidad Navarro. “With payments being distributed in phases over several months, we encourage customers to review State Farm’s communications carefully and reach out to their insurance agent or broker directly if they have questions about their individual dividend. And we’re proud to share that most policyholders will see lower monthly bills as well due to recent rate reductions we have approved.”

“Delaware drivers are feeling the impact of rising auto insurance costs. The Delaware Department of Insurance and Insurance Commissioner Navarro have worked hard to ensure much‑needed relief and continued protection for consumers. I am proud to collaborate with them on the Auto Insurance Reform Task Force to continue identifying opportunities for long‑term stability and affordability in both the private passenger and commercial markets,” said Senator Spiros Mantzavinos, Chair of the Automobile Insurance Reform Task Force.

State Farm Mutual has submitted several consecutive rate decreases, including a significant 9.7% average decrease in March. More than 105,000 Delaware policyholders saw double digit- decreases. This saved residents over $30 million. The Commissioner approved a further 2.3% decrease in July, saving an additional $7.4 million.

Term lengths for State Farm’s auto policies are typically 6 months, allowing for more timely rate updates and frequent reassessment by the Department to ensure rates are adequate, actuarially justified, and not excessive.

How Customers Will Receive Their Dividend

• Customers with an email address on file:
  • Will receive an email inviting them to choose a payment method.
• Available options include:
  • Paper check or digital payment
  • Digital payment options (issued through early November):

Customers without an email address on file:

• Will automatically receive a paper check by standard mail.

Customers who receive an email but do not select a payment method:

• Will be mailed a paper check at the end of the payment process.
• State Farm anticipates that all checks will be issued by the end of 2026.

Customers With Multiple Eligible Vehicles

• Individuals with more than one eligible vehicle may receive multiple dividend payments. Separate communications will be issued for each payment.

Customers Eligible for a Dividend Payment

• Customers with a private passenger auto policy issued by State Farm Mutual in force at any point of time between January 1, 2025, and December 31, 2025 — and whose dividend payment does not fall below $10 (minimum threshold for processing) — qualify to receive a dividend.

Where Customers Can Get More Information

Because payments are being distributed in phases and cover more than 49 million State Farm Mutual auto vehicles nationwide, timing will vary. Customers seeking information about the status of their payment should contact State Farm directly:

• Visit sfdividend.com
• Call 1-888-808-9532
• Contact their local State Farm agent

Additional information about the dividend announcement is available here.

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