BALTIMORE — A Maryland woman thought an email telling her that her auto insurance company wanted to send her money was a scam.
It wasn't.
State Farm is returning $5 billion to qualifying auto insurance customers through a one-time cash-back dividend, the largest in State Farm Mutual's more than 100-year history.
A Matter for Mallory viewer reached out after receiving an email notifying her that she was eligible for a payment. The message directed her to a separate website to select how she wanted to receive the money, which made her suspicious.
WMAR-2 News reached out to State Farm, which confirmed the email was legitimate.
Her household ultimately received $385 total.
Why is State Farm giving customers money back?
State Farm Mutual Automobile Insurance Company announced the $5 billion dividend in February after what the company described as stronger-than-expected underwriting performance in 2025.
State Farm Mutual is a mutual insurance company, meaning it does not have shareholders. The company says that structure allows it to return value directly to its customers while maintaining the financial strength needed to pay future claims.
State Farm reported significantly improved financial results in 2025. Its property and casualty companies went from a $6.1 billion underwriting loss in 2024 to a $1.5 billion underwriting gain in 2025. The company said the improvement reflected better auto insurance underwriting results.
The dividend is separate from reductions State Farm has made to auto insurance rates. The company says it has lowered auto rates by an average of roughly 10% across 40 states, representing approximately $4.6 billion in annual premium savings. State Farm has attributed those reductions in part to declining auto repair costs and fewer collisions in 2025.
Who qualifies for the dividend?
State Farm says customers may qualify if they had an eligible private passenger auto policy issued by State Farm Mutual Automobile Insurance Company that was in force at any point between Jan. 1 and Dec. 31, 2025.
There is also a minimum payment threshold, so not every policy will necessarily result in a dividend payment.
The $5 billion is being distributed to qualifying customers across more than 49 million insured vehicles nationwide.
Individual payments vary. State Farm says each customer's payment is based on a percentage of the premium paid for each qualifying policy in 2025.
When the dividend was first announced, State Farm estimated payments would average about $100 per vehicle nationwide, although the amount varies by state and premiums paid.
In Maryland, State Farm told WMAR-2 News Mallory Sofastaii approximately 895,000 vehicles are eligible for the dividend. The company says the statewide average payment is $149.
When will customers get the money?
State Farm began issuing dividend payments this summer and says millions of qualifying customers have already received their money.
But don't worry if you haven't heard anything yet.
The company is distributing payments in waves by state, and State Farm says processing payments associated with more than 49 million vehicles will take several months.
The email may look suspicious...here's how to verify it
Qualifying customers who already have an email address registered with State Farm will receive an email with instructions for accessing the dividend payment portal and choosing how they want to receive their money.
State Farm told WMAR-2 News the legitimate dividend payment selection email comes from: donotreply@e.sfdividend.com
Customers will be directed to the State Farm Dividend Payment Portal, powered by Verita, at: sfdividend.com
Customers who do not have an email address registered with State Farm don't need to take that step. State Farm says they will automatically receive a check through the mail.
Watch out for scams
With billions of dollars being distributed, State Farm is also telling customers to carefully check the sender's email address and website before clicking links.
State Farm says it will never ask you to pay a fee to receive your dividend.
The company also says it will not ask customers for their email password, banking password, digital-wallet password or other personal passwords.
State Farm says it will not call customers asking for personal information in order to receive the dividend.
Customers who aren't sure whether a notification is legitimate can contact their State Farm agent or call the Dividend Customer Contact Center at 1-888-808-9532.
So if you're a State Farm auto customer and receive an unexpected email saying there's money waiting for you, don't automatically dismiss it.
For one Matter for Mallory viewer, checking before deleting the email led to her household receiving $385.