State Farm to Issue $136M in Dividends to Louisiana Drivers

 State Farm will issue dividends to Louisiana drivers totaling $136 million following stronger than expected underwriting performances nationally.



State Farm, which writes approximately 30% of the personal auto insurance market in Louisiana, will send the dividend to policyholders this summer, according to an announcement from the Louisiana Department of Insurance.


Drivers who had a State Farm Mutual Private Passenger Auto Voluntary Preferred policy in force as of Dec. 31, 2025, will receive an average payment of $138 per vehicle.


“Today’s news is a great example that when an insurance company’s total losses go down—whether through a national trend of fewer accidents or legal reform


at the state level—that company’s customers should directly benefit through lower premiums,” Louisiana Insurance Commissioner Tim Temple said in a statement.


Louisiana private passenger auto premiums declined by an average of -5.8% in 2025


A Walmart spokeswoman said the company has issued payments to affected drivers and continues to make additional payments as appropriate. Walmart is conti


nuously improving procedures to ensure fairness and transparency, she said.


Walmart’s e-commerce business has been among the engines of growth in recent years, helping catapult the company’s market capitalization to $1 trillion.


While the retailer has long sought to broaden its digital footprint, that effort began hitting strides during the pandemic when households turned to online delive


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ry for convenience. Walmart’s online operations grew 24% globally and exceeded $150 billion of sales last year, with consumers increasingly paying up for faster options.


To expand its digital operations, Walmart has been offering various types of delivery services from early-morning to pharmacy delivery. It began delivering Ozempic and other refrigerated prescriptions last fall.


Spark drivers, who are independent contractors, accept orders from Walmart and drop them off at customers’ homes.


“Labor markets cannot function efficiently without truthful and non-misleading informatio


n about earnings and other material terms,” Christopher Mufarrige, the head of the FTC’s Bureau of Consumer Protection, said in a statement.


The lawsuit is the latest by the FTC to seek compensation for gig-economy workers who were allegedly misled about employment terms. In 2021, the agency sued


Amazon.com Inc. for withholding tips from drivers who worked for the company’s Flex program. Ama


zon agreed to pay more than $60 million to reimburse drivers. Three years later, the FTC and Illinois sued Grubhub Holdings Inc. for allegedly deceiving diners abo


ut delivery costs and misleading delivery drivers about potential earnings. The company agreed to pay $25 million to resolve the case.

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