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State Farm issuing $2B dividend to auto insurance customers amid COVID-19 pandemic

(WEEK) -- Drivers with State Farm auto insurance are getting a break amid the novel coronavirus (COVID-19) pandemic.

The Bloomington-based insurance company announced Thursday it is returning a $2 billion dividend to its auto insurance customers, citing most customers will see a 25 percent policy credit.

Customers will not need to take any action. It will appear as a credit on their auto policy, according to State Farm.

"The dividend is part of the Good Neighbor Relief Program that also includes customer payment options and neighborhood philanthropic relief. This is the single largest dividend paid to customers in our company’s history," a statement from the company read.

Customers can expect to receive a credit of about 25 percent of their premium for the time period of March 20 through May 31. Exact percentages will vary by state.

Every State Farm Mutual auto insurance customer will receive credits applied against bills beginning as early as June, according to the statement.

“State Farm is returning value through a dividend to our customers,” said Chairman, President and CEO Michael L. Tipsord. “We insure more cars than anyone and we see from our claims activity people are driving less. This dividend is one of the ways we’re working to help our customers during this unprecedented situation.”

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