Car insurance rates have been soaring since the pandemic. But now, some drivers insured by State Farm are receiving dividend payments, a share of the company’s profits, tied to those higher premiums. The news comes as loyalty in the insurance industry declines in response to those surging rates.
In 2025, the number of customers who re-shopped car insurance hit a record high of 57%, according to a J.D. Power analysis. More concerning for insurance providers is that rates of switching rose even among customers thought to be the most likely to stay put: those who bundle multiple policies with one insurer.
