State Farm Mutual Automobile Insurance has begun distributing a record $5 billion dividend to qualifying auto insurance customers, marking the largest payout of its kind in the company’s more than 100-year history.

Millions of customers have already received payments, with additional distributions still to come, State Farm said in a July 31 news release.

The dividend is being paid to eligible customers covering more than 49 million State Farm Mutual auto vehicles nationwide, underscoring the scale of the program and why the rollout will take time across the country.

“Because the distribution covers more than 49 million auto vehicles , the payment process will take several months to be completed nationwide,” the company said.

Each customer’s payment is calculated as a percentage of the premium paid for each qualifying policy in 2025. According to State Farm, the percentage varies by state and ranges from 4% to 10%.

State Farm previously told USA Today that customers who had an active personal auto insurance policy in 2025 are eligible for the payment.

Qualifying customers will be notified about a pending payment either by email or by letter in the mail. Customers with an email address on file will receive instructions on how to choose their payment method. Those without an email address on file will receive a check by mail.

The insurer did not provide an exact date for when the payments will be completed.

State Farm first unveiled plans for the $5 billion dividend in February. The announcement came after the company said the payout was made possible by its financial strength and “a stronger than expected underwriting performance,” language that echoed broader insurance-sector conditions referenced at the time.

“This dividend is possible due to State Farm Mutual’s financial strength and a stronger than expected underwriting performance, which has been reported industry wide,” State Farm said at the time.

FOX Business reached out to State Farm for comment.