State Farm is issuing an average refund of $100 per vehicle to its auto insurance customers in what the company says is the largest dividend in its history.<\/p>\n
The insurer said<\/a> Thursday that the refunds will go out to policyholders of 49 million vehicles this summer. The exact payment amount will vary based on where a customer lives and their individual premiums. All told, the refunds will amount to $5 billion total in cash flowing back into customers’ wallets, State Farm said in a\u00a0statement<\/a>.<\/p>\n It is unclear what form the refunds will take, although the Bloomington, Illinois-based company told CBS News that the cash distribution “will not be issued as a credit.” A spokesperson said more details on refunds will be shared in the coming months.<\/p>\n State Farm cited “stronger than expected underwriting performance” and shrinking auto repair costs as factors that enabled it to issue the coverage refunds.\u00a0<\/p>\n State Farm provides insurance for autos, homes and small businesses and has nearly 97 million policyholders.\u00a0<\/p>\n Other insurance companies have also recently moved to cut their coverage rates and reimburse customers. USAA, which provides insurance to members of the military and their families,\u00a0said<\/a> in January that it delivered a total of $3.8 billion in savings to customers last year.<\/p>\n