KANSAS CITY, Mo. (KCTV/Gray News) - State Farm customers should check their mailbox soon; a surprise could be waiting.

State Farm Mutual Automobile Insurance Company announced July 31 that it started sending out a $5 billion cash-back dividend to millions of policyholders.

State Farm said the payout is possible because it is a “mutual” insurance company, meaning it is owned by its policyholders and not stockholders.

Here is what to know about the payout, who qualifies and when payments should be expected.

First of all, don’t expect to get rich from this payout. The $5 billion will be distributed across more than 49 million vehicles.

Customers with a personal auto insurance policy that was active at any point in 2025 with a dividend amount of $10 or more will be eligible for a payment.

Individual payouts will be calculated as a percentage of the premium paid for a qualifying auto policy during 2025. Because insurance regulations differ across the country, those percentages will vary by state, ranging anywhere from 4% to 10% of a premium.

“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 Mutual president and CEO Jon Farney said.

Customers won’t need to file a claim to get money, but they do need to watch for official communications from State Farm, or potentially take matters into their own hands.

State Farm said it is alerting eligible customers by email or letter. Customers can also log into their account online or through the State Farm app to learn what will be paid.

Customers have the option of having a physical check mailed or receiving a digital payment.

The distribution process is expected to take several months to complete because of the number of policyholders nationwide.

This payout will not impact insurance rates, so cashing the check will not raise future premium rates, according to State Farm.

Additional information can be found online or by calling the Dividend Customer Contact Center at 1-888-808-9532.

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