State Farm Mutual Automobile Insurance Company, the largest insurer of autos in the nation, announced today it will pay $1.25 billion in dividends to its mutual auto insurance policyholders in 46 states, the District of Columbia and the Canadian province of New Brunswick.
The premium amount in New Brunswick will be equal to 25% of the policy holder’s prior term Semi-Annual Premium ($3.1 million in total). This is the highest payout rate of any province or state.
Now some will say that State Farm ‘overcharged NBers’ and they are reaping windfalls, etc.
But the bottom line is that State Farm has reduced its premiums and now it is giving more back because it earned more than it expected.
I think it is a good thing.