Consumer Finance and Insurance

State Farm announced it will issue a total of $5 billion in refunds to its auto insurance customers this summer, averaging about $100 per insured vehicle across roughly 49 million vehicles. The company says the dividend, which it calls the largest in its history, is driven by stronger‑than‑expected underwriting performance and lower auto repair costs. Individual refund amounts will vary by state and by a customer’s specific premiums, and State Farm has not yet specified whether payments will arrive by check, bill credit or other methods. With nearly 97 million policyholders nationwide, the move will put billions of dollars back into U.S. consumers’ pockets at a time when insurance costs have been a major source of household inflation, and follows similar rate‑cut and reimbursement steps by competitors such as USAA.