DEDHAM, Mass. — An email promising free money might sound like a scam, but for millions of State Farm customers, it is the real deal.
State Farm has begun distributing a one-time $5 billion dividend to eligible auto insurance customers nationwide, the largest dividend payment in the company’s history.
The insurer says customers with a qualifying private passenger auto policy that was in force at some point during 2025 are eligible for a payment. The company is distributing the money in phases through email notifications, mailed letters, and checks.
22,000 Massachusetts drivers are State Farm customers and could be impacted.
According to the company, Massachusetts customers are eligible for about 8% of their premium, which averages $90 per vehicle.
New Hampshire customers are also eligible for 8% of their premium.
Consumer finance expert Joel Larsgaard, co-host of the “How to Money” podcast, said some customers may be skeptical when they receive a message saying they are owed money.
“You’re going to get an email that says you’re getting money and it might seem like a scam out of left field, but it’s not,” Larsgaard said. “This is real money that State Farm is paying to customers.”
State Farm operates as a mutual insurance company, meaning policyholders are effectively owners. When the company’s results exceed expectations, it must return money to customers as dividends.
The company said the dividend program will ultimately cover more than 49 million vehicles nationwide.
What customers should know
Customers with an email address on file with State Farm may receive an email asking them to choose a payment method. Customers without a registered email address will receive information and payments by mail.
State Farm cautions that the payout process will take several months because so many customers are eligible.
That delay has also created opportunities for fraudsters. Consumer experts warn drivers to be cautious about emails, texts, or websites claiming to be connected to the dividend program.
Before providing any personal information, customers should verify that communications come directly from State Farm from this address: donotreply@e.sfdividend.com and only use the official company portal below to enter any official information – don’t click on email links.
Auto insurance rates showing signs of relief
The dividend payments come as consumers begin to see encouraging signs in the broader auto insurance market.
After years of steep increases following the pandemic, auto insurance rates have begun to moderate. The Bureau of Labor Statistics reported that motor vehicle insurance prices fell 4.5% in July compared with the previous month.
Larsgaard said that the cooling trend makes this an ideal time for consumers to comparison shop for coverage.
“Loyalty gets you nowhere in auto insurance prices,” he said.
“We have reached a kind of lull, at least for the time being, in the raising of rates,” Larsgaard added. “And so this is a perfect time for consumers to see substantial savings, but they only go to the people who do the shopping.”
State Farm customers can learn more about the dividend program and check eligibility through the company’s official dividend website.
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