If you have car insurance with State Farm, you could receive a refund that the company itself boasts as the largest dividend in its history. But how much money are we talking about?

Last Thursday, through a press release, State Farm announced a $5 billion cash refund for auto customers.

The insurer estimates that 49 million vehicles would benefit from what they call “the largest dividend in the company's history.” If so, the average refund is estimated to be around $100 per insured vehicle. The exact amount will depend on the customer's characteristics, individual premiums, and place of residence.

“As a customer-centric mutual company, State Farm Mutual can deliver value directly to its customers while maintaining its financial strength to fulfill its promises going forward,” said Jon Farney, president and CEO of State Farm Mutual, in the press release. “This translated this year into lower auto insurance rates and a $5 billion cash refund in dividends for policyholders.”

The announcement comes at a time when many drivers are facing high premiums. In recent years, auto insurance costs have risen due to inflation, the price of parts, and more expensive repairs. Now, the reduction in some of those expenses has allowed for a surplus.

Although the Bloomington, Illinois-based company states in its press release that it will be a cash refund and that it will be distributed during the summer, it did not provide details on how that money will be distributed. A spokesperson indicated that more details will be provided in the coming months and ruled out the possibility of issuing it as credits.

“This dividend is made possible by State Farm Mutual's financial strength and a better-than-expected underwriting performance, reported across the industry,” the company states.

In addition to strong demand, The company reduced its auto repair costs, which contributed to a larger dividend. State Farm also announced it has lowered auto insurance rates by an average of 10% in 40 states in recent months, due to the projected decrease in collision rates by 2025.This last point allowed it to save its customers $4.6 billion in premiums. State Farm has more than 19,200 agent offices and 65,000 employees in the United States, enabling it to serve more than 96 million policyholders with auto, home, small business, and life insurance. Other insurers have also adjusted rates in recent months. USAA, which provides insurance to members of the armed forces and their families, reported in January that it provided a total of $3.8 billion in savings to its customers last year.