Our Verdict
With the State Farm Premier Cash Rewards Visa Signature® Card*, account holders earn mediocre cash back and receive mediocre benefits. With 3% cash back on insurance premium payments, up to $4,000 spent annually, 2% cash back at gas stations, drugstores, grocery stores and on dining, including takeout and food delivery service purchases and 1% cash back on all other purchases, most flat-rate cash-back cards that earn more than 1% cash back would likely make for a better option.
Pros
- No annual fee
- 2% cash-back categories have no earnings cap
- Cell phone insurance and purchase protection
Cons
- Highest cash-back category earnings capped
- Limited extra perks
Highlights
- Earn $150 cash back after spending $500 in the first 90 days of opening an account
- Earn 3% cash back on insurance premium payments, up to $4,000 annually
- Earn 2% cash back at gas stations, drugstores, grocery stores and on dining, including takeout and food delivery service purchases
- Earn 1% cash back on all other purchases
- No annual fee
Introduction
The State Farm Premier Cash Rewards Visa Signature® Card* isn’t awful—it’s simply mediocre. It offers some decent benefits—cellphone protection, auto deductible reimbursement and purchase security. But it falls short of living up to the “you should insure everything” marketing insurance companies have built many a TV commercial upon. The card doesn’t offer travel insurance benefits beyond the car coverage while other offerings in class often do.
The cash-back rates with the State Farm Premier Cash Rewards Visa Signature® Card* sound good at 3% cash back on insurance premium payments, up to $4,000 spent annually, 2% cash back at gas stations, drugstores, grocery stores and on dining, including takeout and food delivery service purchases and 1% cash back on all other purchases. But this only seems like a decent offer until realizing that many competitors offer better rewards and welcome bonuses with more additional benefits.
There is likely a narrow market of people for whom this card will work—probably individuals who want a second, third or fourth card to use for high insurance premiums. The card’s $0 annual fee is nice, but a foreign transaction fee of 3% of each foreign transaction and limited travel benefits won’t be going out of its way to do anything new or risky.
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Quick Facts
- $0 annual fee
- Earns 3% cash back on insurance premium payments, up to $4,000 spent annually, 2% cash back at gas stations, drugstores, grocery stores and on dining, including takeout and food delivery service purchases and 1% cash back on all other purchases
- $150 cash back after spending $500 in the first 90 days of opening an account welcome bonus
State Farm Premier Cash Rewards Credit Card Rewards
Earning Rewards
The State Farm Premier Cash Rewards Visa Signature® Card* earns 3% cash back on insurance premium payments, up to $4,000 spent annually, 2% cash back at gas stations, drugstores, grocery stores and on dining, including takeout and food delivery service purchases and 1% cash back on all other purchases.
Rewards expire after three years at the end of the calendar quarter in which they were earned.
Redeeming Rewards
Rewards are redeemed in the form of a bank deposit or statement credit with the State Farm Premier Cash Rewards Visa Signature® Card*. Rewards can also be redeemed for a U.S. Bank Rewards card after meeting a $25 minimum redemption amount.
Rewards Potential
Forbes Advisor uses data from various government agencies in order to determine both baseline income and spending averages across various categories. The 70th percentile of wage-earning households bring in $116,000 annually and have $36,177 in expenses that can be charged to a credit card. We base spending on that number.
State Farm Premier Cash Rewards Visa Signature® Card* Rewards Potential
| Category | Earning Rate | Estimated Annual Spend | Estimated Annual Earnings |
|---|---|---|---|
|
Auto insurance premiums
|
3X
|
$3,443
|
103 |
|
Gas, groceries, drugstores and dining
|
2X
|
$13,085
|
262 |
|
All other purchases
|
1X
|
$19,649
|
196 |
|
Total: $591.48 in statement credits
|
Other State Farm Premier Cash Rewards Credit Card Benefits
- Cellphone protection. Up to $600 in theft and damage protection if the phone bill is paid with the card.
- ID theft protection. ID Navigator Powered by NortonLifeLock for cardholders.
- Auto deductible reimbursement. Rent with the card and auto protection is included.
- Purchase security. 90 days of protection is automatically guaranteed when eligible purchases are made with the card.
- Visa signature benefits. These include emergency card replacement services and travel and emergency assistance services.
Fine Print
Interest Rates
- Regular APR: 19.24% - 29.99% variable
- Purchase intro APR: N/A
- Balance transfer intro APR: N/A
Fees
- Annual fee: $0
- Balance transfer fee: Either 3% of the amount of each transfer or $5 minimum, whichever is greater.
- Foreign purchase transaction fee: 3% of each foreign transaction
How the State Farm Premier Cash Rewards Credit Card Stacks Up
State Farm Premier Cash Rewards Visa Signature® Card* vs. Citi Double Cash® Card
When it comes to cash back, balance transfers and more, the Citi Double Cash® Card wins in almost every scenario. The Citi Double Cash® Card earns 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off. Except for those who plan to use the card mostly to pay insurance premiums, the Citi Double Cash remains the gold standard when it comes to flat-rate cash back.
Though it does not offer cellphone protection or deductible reimbursement, the Citi Double Cash® Card does include a 0% intro APR on balance transfers for 18 months. After that, the standard variable APR will be 19.24% - 29.24%, based on creditworthiness. An intro balance transfer fee of either $5 or 3%, whichever is greater, applies to transfers completed within the first 4 months of account opening. After that, the fee will be 5% of each transfer (minimum $5).
State Farm Premier Cash Rewards Visa Signature® Card* vs. Chase Freedom Flex℠*
With similar benefits and then some, the Chase Freedom Flex℠* puts the State Farm Premier Cash Rewards Visa Signature® Card* to shame. Cardholders earn 5% cash back on up to $1,500 in categories that rotate quarterly (requires activation), 5% cash back on travel purchased through Chase Travel℠, 3% cash back on dining and drugstores and 1% cash back on all other purchases. The Freedom Flex also offers a 0% intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 20.49% - 29.24% applies. Balance transfer fee of up to 5% (min. $5) of the amount of each transfer applies. There’s also a welcome bonus: $200 bonus after you spend $500 on purchases in the first 3 months from account opening.
The State Farm Cash Rewards just doesn’t cut it against the Freedom Flex. While we’re sure someone out there has the spending habits and priorities to make the State Farm Premier Cash Rewards Visa Signature® Card* seem like the perfect card, we’re confident that most would see much more benefit from the Freedom Flex.
State Farm Premier Cash Rewards Visa Signature® Card* vs. Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express (Terms apply, see rates & fees) has similar cash-back rewards to the State Farm Premier Cash Rewards Visa Signature® Card*: a single category earning the highest cash-back rewards, then a number of other categories earning lower cash-back rates to compensate for the earning limits on the highest category.
However, the Blue Cash Preferred® Card from American Express does it better: 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other eligible purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
It doesn’t offer the State Farm card’s phone protection, but it does offer a 0% introductory APR for 12 months on purchases and balance transfers requested within the first 60 days of account opening, followed by a variable APR of 19.24%-29.99% variable. A balance transfer fee of $5 or 3%, whichever is greater, applies. The Blue Cash Preferred charges a $0 intro annual fee for the first year, then $95 annual fee. For many, the additional cash back earned will be worth it. If not, consider the Blue Cash Everyday® Card from American Express (Terms apply. See rates & fees).
As always, every individual’s situation is different and the Amex Blue Cash Preferred may not return the benefits and cash-back dividends a potential cardholder wants, but we’re confident that it will out-earn and out-perform the State Farm Premier Cash Rewards Visa Signature® Card*.
Is the State Farm Premier Cash Rewards Credit Card for You?
Likely not. The State Farm Cash Rewards Visa will likely be one of few cards to specifically earn 3% cash back on insurance premiums (on up to $4,000 annually), but most flat-rate cards will beat this card’s cash back earning. Unless you’re looking specifically for a card that will earn high cash back on insurance premiums, this isn’t likely to be the card for you.
Find The Best Cash Back Credit Cards Of 2024
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors including:
- Annual fees
- Welcome bonus offers
- Ongoing earning rates
- Value of individual points or miles
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor Rates Credit Cards
To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page.
To view rates and fees for Blue Cash Everyday® Card from American Express please visit this page.
*The information for the following card(s) has been collected independently by Forbes Advisor: State Farm Premier Cash Rewards Visa Signature® Card, Chase Freedom Flex℠. The card details on this page have not been reviewed or provided by the card issuer.
