State Farm To Cut $5 Billion In Dividend Checks: What This Means For FL Residents

Florida drivers insured by State Farm Mutual can expect to receive a check in the mail soon, the company said last week.

State Farm announced that it would send out one-time checks totaling $5 billion to qualifying customers across more than 49 million cars. It's part of the largest dividend in company history, according to a news release.

Each driver will receive a check of about $100 per vehicle this summer. Exact payments will vary by state and premiums paid.

The cash back is possible due to "stronger-than-expected underwriting performance," State Farm said.

The insurer touted the dividend checks as increased savings for customers in addition to the company's recent rate reductions totaling $4.6 billion annually.

"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," State Farm President and CEO Jon Farney said in a statement. "That translated this year to lower auto rates and cash back in the form of a $5 billion policyholder dividend."