08/15/2026
You may have seen and read that State Farm declared a dividend to its Mutual Customers for 2025 and customers are now receiving checks or emails about options on receiving your dividend.
Most of the information online from others is quite hilarious and 100% incorrect. It is not even worth my time to respond but is quite comical to read.
The dividends are real as are the checks and the email you will receive. Not everything you receive is real so I do not mind the policyholders who are calling to make sure.
Here is a brief explanation as to why and it all relates to State Farm being a Mutual Company and the benefits that come with it. The fact that some feel you should not cash the check because it will make your rates go up is not only hilarious but 100% FALSE. I guess it doesn't matter when a company gives back as society tries to turn it into a negative.
State Farm being a mutual company means it is owned by its policyholders rather than outside stockholders. That structure can provide several important benefits:
Policyholder focus: Because there are no public shareholders demanding quarterly returns, the company can place greater emphasis on serving policyholders and maintaining long-term relationships.
Long-term decision-making: A mutual structure can make it easier to prioritize financial strength, claims-paying ability, customer retention, and sustainable growth rather than short-term stock performance.
Financial strength can stay within the company: Earnings that aren't needed for expenses or claims can be retained to strengthen the company and support future policyholder needs rather than being distributed to outside shareholders.
Potential policyholder dividends: For certain participating policies, eligible policyholders may receive dividends when declared. These aren't guaranteed and depend on the particular product and company results.
Alignment of interests: In principle, the owners and customers are the same group—policyholders. That creates a different incentive structure from a publicly traded insurer, where the interests of customers and shareholders can sometimes compete.
Stability: Mutual insurers can often take a longer view during difficult insurance-market cycles because they aren't subject to the same public-market pressures as publicly traded companies.
A simple way to explain it to a customer is: “State Farm is a mutual company, so we're owned by our policyholders—not outside stockholders. That allows the company to focus on serving customers and maintaining long-term financial strength rather than maximizing returns for shareholders.”
Cash your checks and enjoy. It doesn't always happen, but take it for what it is and know that we returned some of your premium as well as lowered rates 3 times in the last 18 months.
Need a quote? Happy to help.
