If you held a State Farm auto insurance policy before the end of last year, be on the lookout for a check in the mail. State Farm is issuing policyholders in Louisiana a special dividend of around $138 per vehicle on the policy. Louisiana Insurance Commissioner Tim Temple says dividends like this one are not uncommon.
“When an insurance company takes in more money than the anticipated claims that they pay out, this is the mechanism to give that money back,” Temple explained.
State Farm is Louisiana’s largest auto insurer, and $136 million in dividend payments will be issued in total. Temple says any refund is good money, and any money back in the pockets of consumers is a blessing.
“This is not a credit on your policy. This is a check that you will receive in the mail that you can deposit and spend, hopefully, on something other than insurance,” Temple noted.
If your auto insurance is through a different company, Temple says you may get your turn eventually.
“This is part of a national trend that not just State Farm, but other private passenger auto companies are seeing; and that is, fewer claims because of fewer accidents,” Temple said.
He says a big part of that reduced number of claims is thanks to modern safety features. Eligible State Farm customers with an email on file will receive an email between now and early September asking to select a payment method.