BATON ROUGE, La. — State Farm Mutual Automobile Insurance Co. will begin issuing special dividend payments this week to eligible Louisiana auto insurance policyholders after reporting stronger than expected underwriting performance nationwide.
The company, which writes about 30% of Louisiana’s private passenger auto insurance market, notified the Louisiana Department of Insurance that qualifying customers will receive an average payment of $138 per insured vehicle. The payments are expected to total approximately $136 million statewide.
Eligible recipients are policyholders who had a State Farm Mutual Private Passenger Auto Voluntary Preferred policy in force as of Dec. 31, 2025.
Insurance Commissioner Tim Temple said insurers set rates based on projected premium revenue and expected claims costs. When actual claims are lower than anticipated, policyholders can benefit through lower premiums or dividend payments.
According to the Louisiana Department of Insurance, private passenger auto insurers filed more than 45 rate decreases across 2025 and 2026. Those filings are expected to reduce premiums by a combined $384 million for affected policyholders over their upcoming policy terms.
Temple also cited legal and regulatory changes approved during the past three legislative sessions as efforts to reduce costs in Louisiana’s auto insurance market. The reforms include changes to the state’s comparative fault system, repeal of the direct action statute, limits on third-party litigation financing, revisions to the Housley presumption, increased medical billing transparency in litigation, and stronger distracted driving laws.
State Farm said eligible customers with an email address on file will receive an email between early August and early September asking them to select a payment method. Customers without an email address on file will receive a check by mail. Policyholders with multiple eligible vehicles may receive more than one dividend payment.
The insurer said dividend payments will be issued in phases through the end of the year.