State Farm Mutual Automobile Insurance Company has announced a return of up to a $2 billion dividend to its auto insurance customers for their coverage from March 20 to May 31. With schools and businesses closed with stay-at-home 
orders, people are driving less, and there are fewer claims. “The goal is to help customers in these challenging times,” explains State Farm Agent Andy Oman. “State Farm Mutual will pay up to $2 billion in State Farm dividends. This is the largest dividend in State Farm history. People are driving less due to COVID-19 stay-at-home orders, and our claims experience reflects this change in behavior. Tying into that dividend, we’re offering payment assistance for customers facing financial hardships. We’re suspending cancellations and non-renewals based on non-payment through April 30 and donating $5 million in neighborhood relief to communities across the country. So, with this difficult time, I’m excited to see State Farm pull together and offer this back to great customers.”
Oman said dividends of about 25 percent would begin being credited as early as June. “We anticipate customers will start seeing these premium credits beginning as early as June,” said Oman. “The amount received by each policyholder is a percentage of that policyholder’s premium owed between March 20 and May 31. The amount received by each customer will be approximately 25 percent of the auto insurance premium owed. The dividend will be about $20 a month for each vehicle insured.”
Oman said the dividend return is an initial effort made by State Farm with the hope things get better soon. “In correspondence with State Farm Corporate, this is an initial effort,” said Oman. “We hope this thing turns around sooner than later. But it could be something beyond if needed. Ultimately, the goal is with people driving less that these dollars are returned to our policyholders.”
Oman added the team at the Andy Oman State Farm Office is available to answer questions and give support by calling 281-3643. “Our team in the office is still fully available,” said Oman. “We have a couple working remotely, but the core of our team is still in the office daily to answer questions and give support during this time. We’re business as usual and hope this passes us soon.”
