Dividends are a one-time return of premium based on recent financial results.
State Farm doesn't plan dividends when setting prices, but does return money to customers when financial results are better than anticipated and business conditions permit. We work hard to be good stewards of our policyholders' money and to give our policyholders fair, reliable and quick service whenever they need it. Returning insurance premium dollars through dividends is just another way for us to show our commitment to our customers. The vast majority of policyholders will receive their dividend by check during the six-month policy renewal cycle beginning today. State Farm's New Jersey policyholders are not included in this dividend, because they are insured by a different company, State Farm Indemnity.