BATON ROUGE, La. — State Farm Mutual Automobile Insurance Company, which writes approximately 30% of Louisiana’s private passenger auto insurance market, announced today it will issue special dividends this summer to qualifying policyholders following stronger-than-expected underwriting performance nationally.
State Farm notified the Louisiana Department of Insurance (LDI) that policyholders who had a State Farm Mutual Private Passenger Auto Voluntary Preferred policy in force as of Dec. 31, 2025, will receive an average payment of $138 per vehicle. The company expects to return approximately $136 million to policyholders across Louisiana.
Insurance Commissioner Tim Temple released the following statement:
“I’m glad to hear State Farm is sharing some of its savings with policyholders — that’s the way this is supposed to work,” said Commissioner Temple. “When an insurance company’s total losses go down — whether due to a national trend of fewer accidents or positive reforms at the state level — customers should see the benefit. Today’s announcement reflects that principle in action.”
The dividend announcement follows recent LDI analysis showing Louisiana private passenger auto premiums declined by an average of 5.8% in 2025, representing a statewide premium reduction of more than $340 million compared to the previous year.