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Earlier this year, State Farm Mutual Automobile Insurance Company, a national insurer that writes approximately 30% of the private passenger auto insurance market in Louisiana, announced it is issuing 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, totaling $136 million in total payments statewide.
“Insurance companies base their rates on projections of how much they will collect in premiums and how much they will pay out in claims,” said Insurance Commissioner Tim Temple. “When an insurance company takes in more money than anticipated and pays out less in claims, whether due to national trends, state-level reforms, or both, policyholders should benefit directly through lower premiums.”
In 2025 and 2026 combined, private passenger auto insurers filed over 45 rate decreases that will result in those companies’ policyholders collectively paying about $384 million less in premiums over their next policy terms.
“Over the past three legislative sessions, I worked with Gov. Jeff Landry and the Louisiana Legislature to pass several legal reforms and other legislation aimed at bringing down cost drivers in our state’s auto insurance market,” said Commissioner Temple. “Those reforms include modifying our state’s comparative fault system, repealing the direct action statute, limiting third-party litigation financers’ influence in lawsuits, reversing the Housley presumption, increasing medical billing transparency in litigation, strengthening distracted driving laws, and more.”
According to State Farm, 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 who do not have an email address on file will receive a check in the mail. Customers with multiple eligible vehicles may receive more than one dividend payment.
State Farm customers who have questions about the payments should call 1-888-808-9532 or visit sfdividend.com. The company anticipates that payments will be issued in phases through the end of this year.
In the Franklinton area, State Farm is represented by agent Laurie Bell, phone number 839-4152.
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