Costco car insurance reviews have become a popular search topic as many drivers want to know whether the insurance offered through Costco (via CONNECT by American Family Insurance) truly offers savings and reliable coverage. While Costco itself is not an insurance company, members often receive exclusive discounts and member-only benefits. This blog covers everything you need to know before deciding whether Costco car insurance is the right choice for you.
What Is Costco Car Insurance?
Costco offers auto insurance through its partner CONNECT, powered by American Family Insurance. Members can get discounted rates, additional perks, and unique savings programs. Coverage options usually include standard auto insurance features along with optional add-ons Benefits of Costco Car Insurance.
Key Features of Costco Car Insurance
Here are the most important things customers look for:
1. Member-Only Discounts
Costco Executive Members often get the biggest savings on auto insurance premiums.
2. Solid Financial Backing
The insurance is backed by American Family Insurance, a reputable U.S. insurer with strong financial ratings.
3. Bundle Savings
Customers can bundle car insurance with home, renters, or umbrella insurance for additional discounts.
4. Accident Forgiveness
Some plans offer accident forgiveness, depending on eligibility and location.
5. 24/7 Customer Support
CONNECT provides round-the-clock support for claims and roadside assistance.
Costco Car Insurance vs. Competitors
| Feature | Costco (CONNECT) | GEICO | Progressive |
| Price | Usually lower for members | Moderate | Moderate |
| Customer Service | Strong | Strong | Good |
| Discounts | Member-only | Standard | Wide range |
| Availability | Limited states | Nationwide | Nationwide |
Costco Car Insurance Reviews: What Customers Like
Based on general consumer feedback, here are the most common positive points:
Affordable Pricing
Many policyholders say Costco provides cheaper premiums compared to mainstream insurers—especially for Executive Members.
Smooth Claims Experience
Reviews often highlight quick claim processing and professional adjusters.
Good Customer Service
CONNECT customer service gets positive ratings for accessibility and support.
Member Rewards
Added benefits like roadside assistance and renewal discounts make the policy attractive for long-term members.
Costco Car Insurance Complaints & Things to Consider
Not all reviews are positive. Here are common concerns:
Rates Can Increase Over Time
Some customers report price hikes after policy renewal.
Availability Varies by State
Costco car insurance is not available everywhere in the U.S.
Limited Customization Options
Compared to companies like Progressive or GEICO, customization may feel limited for some drivers.
Membership Required
You must maintain a Costco membership to enjoy discounts.
What Coverage Options Does Costco Car Insurance Offer?
Typical coverage includes:
- Liability Coverage
- Collision & Comprehensive
- Medical Payments
- Uninsured/Underinsured Motorist
- Rental Reimbursement
- Roadside Assistance
- Personal Injury Protection (state-dependent)
Optional add-ons may also be available depending on your location.
Costco Car Insurance Pricing
Although the exact premium depends on factors like age, driving record, and vehicle type, many drivers find that Costco’s partner insurance offers:
- Lower rates for safe drivers
- Exclusive discounts for Costco members
- Competitive rates when bundled
Who Should Consider Costco Car Insurance?
Costco car insurance may be ideal for:
- Existing Costco members
- Drivers looking for lower premiums
- Families wanting multi-vehicle discounts
- Safe drivers with a clean driving record
- People who want insurance from a reputable nationwide provider
It may not be ideal if you live in a state where CONNECT doesn’t operate or if you prefer highly customizable coverage.
What types of insurance does Costco offer?
Car and home insurance aren’t the only types of coverage members can get. Here’s a list the different types of insurance you can get through Costco. All these are underwritten by the warehouse club’s partners, not by Costco directly:
- Auto – Costco offers many auto insurance coverage options, including traditional policies such as collision and comprehensive insurance. Additional coverages, such as roadside assistance, towing, and rental car insurance, are also available.
- Home and condo -Whether you own a home or condo, Costco offers standard coverage to protect the building’s structure, your belongings and more. You can also choose from additional coverage options such as scheduled personal property coverage to cover high-value items, identity theft protection and personal injury coverage.
- Renters – Renters insurance covers the cost of replacing your personal property, and coverage for liability and medical payments help protect you if visitors are injured while visiting your rental.
- Umbrella – Umbrella insurance provides extra coverage, and it can help make up the gap between your auto or home insurance policy liability limit and the actual cost of a claim. It offers extra financial protection in case someone is injured, such as in a car accident or an accident that occurs on your property.
- Specialty – Costco also offers specialty insurance to cover your ATV, motorcycle, boat or classic car.
- Pet – Costco members can also save on pet insurance, which is underwritten by Figo. When you enroll in pet insurance through Costco, you’ll pay 15% less for coverage compared to a non-member with similar coverage needs.
- Life – Costco has partnered with Protective Life Insurance Company to offer discounted term life insurance policies to its members.
Is Costco insurance available in all states?
No, Costco doesn’t offer its members discounted insurance in every state, but it’s available in most. If you’re looking for home insurance, you’ll be able to get a quote through Costco in any state except Alaska, Hawaii, California and Florida.
If you want to switch car insurance, Costco’s insurance partners offer policies in all states except Alaska, Maine, North Dakota, Rhode Island, West Virginia and Wyoming.
The other types of insurance offered through Costco are also generally available in most U.S. states. But you can check with the underwriting partner to confirm it issues policies in your state before getting a quote.
Is Costco insurance worth it?
While Costco members can expect discounted rates in most states, it might not always be the cheapest quote you get. However, the coverage you get and the additional perks (especially for executive members) can make it worth it. Depending on where you are, it might be the cheapest quote in addition to the most comprehensive coverage.
The bottom line is: If you’re a Costco member, it’s worth at least getting a quote through Costco.
You should also shop around and get multiple quotes to make sure you’re getting the best price for the coverage you need.
FAQ
Q 1. Does Costco offer its own car insurance?
No. Costco does not sell its own insurance. Instead, it partners with CONNECT by American Family Insurance to provide auto insurance for Costco members.
Q 2. Is Costco car insurance cheaper?
Many customers report lower premiums, especially for Executive Members. However, pricing depends on factors like driving history, location, vehicle type, and available discounts.
Q 3. Is Costco car insurance good?
Yes. Reviews highlight solid coverage, strong financial backing, and fast claims support through American Family Insurance. Many customers appreciate the affordable pricing and membership perks.
Q 4. Who underwrites Costco car insurance?
Costco car insurance is underwritten by CONNECT, powered by American Family Insurance, a well-established and reputable insurer in the U.S.
Q 5. Do you need a Costco membership to get car insurance?
Yes. A current Costco membership (Basic or Executive) is required to qualify for member discounts and benefits.
Q 6. Does Costco car insurance offer roadside assistance?
Yes. Many Costco auto insurance policies offer roadside assistance, depending on your plan and state.
Q 7. Does Costco car insurance include accident forgiveness?
In some states and under eligible plans, accident forgiveness is available. It may depend on your driving history and local regulations.
Q 8. Is Costco car insurance available in every state?
No. Availability varies by state, and CONNECT does not operate in all U.S. regions. Drivers should check availability before applying.
Q 9. Can you bundle Costco car insurance with home insurance?
Yes. Costco offers bundled savings for home, renters, condo, and umbrella insurance through CONNECT.
Q 10. How do I get a quote for Costco car insurance?
You can get a quote online through the Costco Insurance Marketplace or by calling CONNECT customer service directly.
Conclusion
Overall, Costco car insurance reviews show that the policy offers competitive pricing, solid coverage, and reliable claims support—especially for Costco Executive Members. If you’re already a Costco shopper and want to lower your insurance costs, this can be a strong option. However, availability and rate increases may vary, so comparing quotes is always recommended.
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