State Farm Mutual Automobile Insurance Company, a national insurance company 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 Commissioner Tim Temple’s statement on the announcement:
“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. “Today’s news is a great example that when an insurance company’s total losses go down—whether through a national trend of fewer accidents or legal reform at the state level—that company’s customers should directly benefit through lower premiums.”
This is in addition to the recent analysis released by the LDI 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 as compared to the previous year.
