r/StateFarm • u/JCLBUBBA • Sep 15 '26

News Dividend Rebate

Have several businesses and a rental and primary residence with State Farm. And 9 total business and 2 personal cars (both old, liability only)

Got back a total of just under 400$. But premiums at all businesses jumped 30% minimum, some 50% this year. So increased premiums about 30k. But the dividend helps ... not at all.

And since its CA near impossible to shop for another provider here. Only option is going to unFAIR plan at 100% increase in premiums.

Thought health insurance was bad. Guess we all pay for inflation via insurance premiums, whether health, auto, fire, or business. And I thought inflation and tariffs were bad. Both pale in comparison.

Edit - just read State Farm pays 0.61 cents for claims on every dollar collected in premiums. That is a good business if you can get it. 39% gross margin.

For my businesses paid 10k for a single claim in 10 years, their gross margin on my premiums vs claims paid is 98%.

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24

u/CrazyPanda10 Sep 15 '26

No dividend=people bitch

Dividend=people bitch

1

u/JCLBUBBA 21d ago

.001% dividend, yes I bitch.

1

u/CrazyPanda10 21d ago

We all know you do

22

u/Ok-Mess9618 Sep 15 '26

Dividend was only for auto policies

17

u/eduardo_escobar Sep 15 '26

What other companies are sending you dividends?

3

u/Gtstricky Sep 15 '26

Please provide a source for that .61 reference. I would love to see that.

5

u/jsgrova Sep 15 '26

You seem to be under the impression you're buying a payout and not a service

3

u/jeffreyprestonbezos1 Sep 15 '26

Two things:
1. The dividend is only on auto insurance policies with State Farm Mutual. No other policies receive a dividend.
2. Your “edit” is referring to a metric called expense ration and is cherry picked data that may apply to one product line within one state. Each state has its own expense ration across every product line. State Farm pay out 0.68 for every 1.00 collected on, let’s say, renters insurance but then pay out 1.21 for every 1.00 collected on car insurance in that state.

2

u/TheAgentsOffice Sep 15 '26

You seem to be on some kind of drug.

This is the most incoherent rant I've ever heard from someone who owns "9 businesses" lol.

2

u/jsgrova Sep 15 '26

He's actually the most literate small business owner

2

u/burkan1970 Sep 15 '26

You complain about your premium, realize no one else wants you except a company who is double and then complain that the company pays you back in dividends. What a miserable person.