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Costco Car Insurance Review 2023

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Jul 27, 2023 #car, #Costco, #insurance, #Review

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Costco Auto Insurance

4.16/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Costco Auto Insurance

4.16/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star


Costco Auto Insurance

Pros & Cons
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Additional Reading
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While many love Costco for its wholesale prices and value of its food court meals, Costo offers several other services to members, including auto insurance. Costco auto insurance is offered through Connect, powered by American Family Insurance. 

Those who have Costco memberships rave about its wholesale prices and the value of food court meals, but it also offers several other services to members, including auto insurance. Costco auto insurance is offered through Connect, powered by American Family Insurance. 

You’ll need a Costco membership to get insured, but the upside is a variety of discounts, and generally affordable rates.

Types of Auto Insurance Plans from Costco

Before you consider the various types of car insurance offered by Costco, make sure you’re a member so you’re eligible to purchase a policy.

There are two types of Costco memberships: Gold Star, which allows members to shop in-store and online, and the Executive, which provides all the same benefits as the Gold Star plus 2% cash back. The Gold Star membership costs $60 per year, while the Executive costs $120 per year. 

Costco Executive members get additional perks, including free roadside assistance and lifetime renewability. And while auto and home insurance are Costco’s primary offerings, it also has renters, umbrella, life, pet, business health, and specialty insurance.

Connect offers the following types of auto insurance: 

  • Comprehensive: Covers “out of your control” events, such as weather-related events, vandalism or theft, or hitting an animal. 
  • Collision: Covers collisions with another vehicle or object, such as a light pole or a pothole. 
  • Rental car: Also known as rental reimbursement coverage, pays up to a daily amount you select towards a rental vehicle after a covered loss. 
  • Bodily injury: If you injure someone in an accident and are found at fault, this can help cover the cost of a lawsuit, jury award, or settlement.
  • Property damage: If you’re in an accident and cause damage to another’s property, such as sliding on ice into your neighbor’s mailbox or hitting a parked vehicle, this can help pay for the damage. 
  • Uninsured motorist: If you’re in an accident and the other driver is uninsured or underinsured, this will help pay for your medical expenses and damaged vehicle. 
  • Medical expense: Covers medical-related expenses after an accident, including hospital stays, doctor visits, and ambulance fees. 
  • Personal injury protection: Personal Injury Protection (PIP) is required in some states and can cover medical expenses, lost wages, lost services (such as childcare), and funeral expenses. 
  • Guaranteed auto protection: Guaranteed Auto Protection (GAP) covers the difference between what your new car is worth, or what you still owe, and what your insurance policy will pay out. 

Comprehensive insurance includes stolen key coverage, which involves replacing the locks and waiving the deductible if it costs under $250. 

Connect also offers accident forgiveness, which will essentially overlook a first at-fault accident and not raise your premiums, after you maintain a clean driving record for a certain amount of time.

There’s also free windshield repair for Connect customers, and the Glass Repair Deductible Waiver ensures that your deductible will be waived if your windshield only needs repair, not replacement. 

Currently, Costco Insurance Agency is not offering new auto or home insurance policies to residents of California. Costco car insurance isn’t available in Alaska, Louisiana, Maine, North Dakota, Wyoming, either.

Additional Coverage Options (Riders)

Costco Executive Members can enjoy the following exclusive benefits: 

  • Real-time roadside assistance: This benefit offers up to $75 per incident for each covered vehicle, including help for a flat tire, dead battery, low fuel, or something unexpected. This does not cover the cost of fuel or battery. 
  • Lifetime renewability: If something unexpected happens, even more than once, you may still be able to have your policy renewed for your lifetime. 
  • Accident travel expense coverage: To make your life easier when you’re on vacation or traveling and involved in a car accident, Connect will help cover accommodation and travel expenses if in an accident more than 100 miles from home disables your vehicle.

Costco Auto Insurance

4.16/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Costco Auto Insurance

4.16/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star


Costco Auto Insurance

Pros & Cons
Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Additional Reading
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How Much Does Costco Auto Insurance Cost?

Although the price of auto insurance through Costco will depend on various factors, including zip code, driving history, age, and type of car, it offers many discounts to lower the overall insurance cost. 

To obtain a quote, members can select their membership type from Costco’s Auto & Home Insurance site.

A married 37-year-old woman with an Executive Costco membership in Minnesota can expect to pay around $745 for auto insurance a year. This is for $30,000/$60,000 bodily injury and uninsured motorist coverage, with a $25,000 property damage limit. For comparison, the average cost of auto insurance in 2023 is $1,070.

That same individual with a Gold membership can expect to pay $823 annually for the same amount of coverage.

Costco offers the following discounts: 

  • Premier safety discount: Available for those without accidents, traffic violations, or claims within the past four years. 
  • Defensive driver course discount: Take a “refresher” course through your state’s DMV or other accredited organization and receive a discount upon completion. 
  • Discounts for vehicle safety features: Includes anti-lock brakes, airbags, automatic seatbelts, and anti-theft devices. 
  • Garaging discount: For those who park in a garage overnight. Only available in certain states. 
  • Good student discount: For full-time students who meet certain qualifications. 
  • Student away discount: Available for students over 100 miles from home without a car. Allows them to keep coverage for weekends and school breaks without paying full price. 
  • Multi-car discount: More than one vehicle insured qualifies for a discount. 
  • Multi-product discount: Bundling auto with home, auto with umbrella, or auto with home and umbrella insurance saves. 
  • Tenure discount: When customers reach certain time milestones, Connect will reward them with a lower premium than new customers may get. 

Costco claims that members who switched to Connect saved on average $587.17 in their first year. 

How to File a Claim With Costco Auto Insurance

Costco auto insurance customers can file claims 24/7 online or with over-the-phone reporting. Those who report losses over the phone (and with some online claims) will be contacted within the next business day. Members can pick their favorite repair facility, or Connect can recommend one nearby. Connect also has preferred car rental facilities. 

Those who need customer service assistance can call 888-404-5365 on Monday-Friday from 7:00 a.m. to 10:00 p.m. CT or on Saturdays from 8:30 a.m. to 7:00 p.m. for assistance.

Costco Auto Insurance FAQ

To obtain a quote for Costco insurance, you can call 1-855-531-9253 on Monday-Friday from 7:00 a.m. to 10:00 p.m. CT or on Saturdays from 8:30 a.m. to 7:00 p.m. You can also obtain a quote by filling out the online form: https://cos.connectbyamfam.com/2812/quote/membership 

Connect allows customers to pay their insurance premiums in several ways: 

  • Direct Full-Pay: Pay your 6-month or 1-year premium by check, money order, or credit card. 
  • Installments: Pay monthly installments by credit card, debit card, or pre-authorized withdrawal from your checking or savings account for a small convenience fee. Varies for residents of Georgia, Texas, Michigan, and Massachusetts.

Use Connect’s quick service website to manage your account and make payments anytime. 

Connect allows you to make several changes in your account, including: 

  • Changing your payment method
  • Paying a bill
  • Updating your account information
  • Adding or removing vehicles
  • Changing your address
  • Adding or removing drivers
  • Updating driver’s license or VIN number

Why You Should Trust Us: How We Reviewed Costco Auto Insurance

Insider evaluates auto insurance companies based on customer service and claims satisfaction scores. We also factor in availability, price, user-friendliness, and additional features. See our full insurance rating methodology for more details on what goes into our insurance product ratings.

How Costco Car Insurance Compares

Costco vs. AAA Car Insurance

Both Costco and AAA require membership for auto insurance. While Costco’s auto insurance is supplied through Connect, powered by American Family, AAA has several providers for protection, including The Hartford, Progressive, Travelers, and MetLife. While both companies offer several discounts, AAA also offers a hybrid/alternative fuel discount. 

J.D. Power has ranked American Family, Costco’s provider, above the industry average for overall customer satisfaction. AAA Auto Insurance ranked at the top for Southern California under the Auto Club of Southern California Insurance Group. For those who drive a hybrid vehicle or want to compare several different providers simultaneously, it may be worth checking into AAA and comparing prices with Costco’s auto insurance. 

Costco vs. AARP Auto Insurance

AARP is another membership-driven choice, and members have to be 50 or older. While Costco’s insurance is offered through American Family, AARP’s is offered through The Hartford. AARP offers RecoverCare, a unique program that helps care for your home and animals while recovering from an accident. 

Both companies are ranked on J.D. Power’s Auto Claims Overall Customer Satisfaction list, with American Family ranking above the industry average, and The Hartford ranking below. If you are both a Costco and AARP member or considering becoming one, you may want to compare both companies for price and availability to see which makes the most sense. 

Read our AARP car insurance review.

Costco vs. Farmers Auto Insurance

Unlike the other insurers mentioned thus far, Farmers Insurance does not require any membership to obtain auto insurance. American Family (via Connect) and Farmers offer several types of coverage, but Farmers also has Rideshare coverage for those who drive others for work. Farmers also has Signal, an app that tracks how well you drive and offers discounts for good driving. 

Farmers is also listed on J.D. Power’s U.S. Auto Claims Overall Customer Satisfaction list and ranks higher than Costco’s provider American Family. Farmers could be a good option to consider for those who are not Costo members or are unsure if the benefits of becoming one make sense. Even if you are a Costco member, compare with Farmers to determine who has the best options and pricing available.

Costco Auto Insurance

4.16/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star

Costco Auto Insurance

4.16/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

A five pointed star


Costco Auto Insurance

Pros & Cons
Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Additional Reading
Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

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