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Costco Car Insurance: A Smart Choice or Just a Membership Perk?

Costco is known for bulk savings, great return policies, and exclusive member perks—but did you know it also offers car insurance? That’s right. Through a partnership with CONNECT, powered by American Family Insurance, Costco provides its members with access to discounted auto insurance rates and a suite of benefits. But is it worth switching your car insurance to Costco’s provider? In this blog, we’ll dive deep into what Costco car insurance offers, how it works, and whether it's a good fit for you.

What Is Costco Car Insurance?

Costco doesn’t directly insure your vehicle. Instead, it partners with CONNECT by American Family Insurance to offer auto coverage at competitive rates for its members. CONNECT has been around for over 35 years and has a solid reputation for customer satisfaction and claims service.

When you sign up for Costco auto insurance, you’re essentially getting access to a discounted policy offered through CONNECT, which is tailored to Costco members. You’ll still deal with CONNECT directly for quotes, claims, and customer service.

Key Features of Costco Car Insurance

Here are the standout features of the Costco car insurance program:

1. Exclusive Member Discounts

Costco Executive Members may receive additional discounts on top of standard pricing. These can result in significant savings, especially for families with multiple vehicles.

2. Highly Rated Claims Service

CONNECT consistently ranks well in customer satisfaction and claims handling. It has earned praise in J.D. Power studies for its reliability and speed in resolving claims.

3. Bundling Options

You can bundle Costco’s car insurance with homeowners, renters, or umbrella insurance through CONNECT, unlocking even more discounts.

4. Lifetime Renewability (Some States)

One of the unique benefits Costco offers Executive Members is the potential for lifetime policy renewals, meaning your policy won’t be dropped as long as you meet the basic requirements.

5. Roadside Assistance

Optional roadside assistance is available, covering services like towing, flat tire changes, and emergency fuel delivery.

Types of Coverage Offered

CONNECT offers a full range of standard car insurance coverage, including:

  • Liability Coverage: Covers bodily injury and property damage you cause to others.

  • Collision Coverage: Covers damage to your car from collisions.

  • Comprehensive Coverage: Covers theft, vandalism, weather, and animal-related damage.

  • Medical Payments / Personal Injury Protection: Covers medical bills regardless of fault.

  • Uninsured/Underinsured Motorist Coverage: Protects you if you're hit by someone without enough insurance.

  • Rental Reimbursement: Helps pay for a rental car while your vehicle is in the shop.

  • Gap Coverage: Covers the "gap" between what you owe on a car loan and the vehicle’s actual cash value after a total loss.

How Much Does Costco Car Insurance Cost?

Costco doesn’t list fixed prices because rates vary based on location, driving history, vehicle type, and credit score. However, many users report saving anywhere from 5% to 20% compared to traditional insurers. Executive Members tend to receive the highest discounts.

To get a quote, you’ll need to:

  1. Be a Costco member (Basic or Executive).

  2. Visit CONNECT’s website or call a licensed agent.

  3. Provide personal and vehicle information.

Costco Executive Membership Perks

Costco Executive Members ($120/year) get access to:

  • Additional policy discounts

  • Lifetime renewability in select states

  • Higher coverage options

  • Deeper bundling benefits

These benefits can more than pay for the cost of the Executive Membership if you bundle multiple policies or have high-value vehicles.

Pros and Cons

✅ Pros

  • Competitive Rates: Especially for safe drivers and Costco Executive Members.

  • Bundling Discounts: Combine with home or renters insurance for more savings.

  • Solid Customer Service: Good track record for handling claims efficiently.

  • Trusted Underwriter: CONNECT is backed by American Family Insurance, a well-established insurer.

  • Roadside Assistance Option: Affordable add-on for peace of mind.

❌ Cons

  • Limited Availability: Not available in all states (e.g., not offered in Alaska, Louisiana, or Wyoming).

  • Third-Party Provider: All customer service and claims go through CONNECT, not Costco itself.

  • Mixed Reviews: Some users report rate increases after initial discounts expire.

  • Executive Perks Not Universal: Lifetime renewability and other benefits vary by state.

Customer Reviews and Ratings

  • J.D. Power: CONNECT scores above average in customer satisfaction.

  • BBB: CONNECT holds an A+ rating from the Better Business Bureau.

  • Trustpilot: Ratings are mixed, with high marks for claims service but some complaints about premium increases.

Real-life Costco members often praise the company for ease of bundling and affordable premiums, especially for families and homeowners. However, others have noted that initial savings can fade after the first renewal if your driving record changes or state regulations affect pricing.

Who Should Consider Costco Car Insurance?

Costco car insurance is a smart option if you:

  • Are already a Costco member (especially Executive).

  • Have a clean driving record.

  • Want to bundle auto with home or renters insurance.

  • Live in a state where CONNECT operates.

  • Value top-tier claims service and stability.

It may not be ideal if:

  • You’re not a Costco member and don’t want to join.

  • You live in a state where coverage isn’t available.

  • You need a highly customized insurance package.

How to Get Started

  1. Check Availability: Visit connectbyamfam.com to confirm your state is covered.

  2. Get a Quote: Use the online tool or speak to a licensed agent.

  3. Compare Options: Review deductibles, discounts, and coverage options.

  4. Switch Easily: CONNECT can help cancel your old policy and transfer coverage.

Final Verdict: Is It Worth It?

Costco car insurance, powered by CONNECT, is a compelling choice for many drivers—particularly Costco Executive Members looking for affordability, convenience, and reliable service. With the potential for deep discounts and quality support, it stands out in a crowded insurance market.

Still, it pays to shop around. Get quotes from multiple providers and consider your unique needs before making the switch. If you value Costco’s customer-centric approach and already benefit from other member perks, Costco car insurance might be the perfect fit.

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