# 🚗 Does Costco Offer Car Insurance?
### Complete Guide, Costs & Best Options (2026 Update)
If you’re a Costco member, you already know they’re famous for bulk savings, quality products, and member-only perks. But many drivers still ask:
> **“Does Costco offer car insurance, and is it actually a good deal?”**
The short answer:
**Costco does not directly sell car insurance itself**. Instead, it partners with a major insurance provider to offer **auto insurance exclusively for Costco members**—often at discounted rates with some added benefits.
This complete guide breaks down:
– ✅ Who actually provides Costco car insurance
– ✅ What’s included and how it works
– ✅ Typical costs and discounts
– ✅ Pros, cons, and who it’s best for
– ✅ How it compares to traditional insurers
– ✅ Step-by-step: how to get a quote through Costco
—
## 🧾 1. Does Costco Offer Car Insurance?
### Costco Partner: CONNECT by American Family Insurance
Costco doesn’t underwrite the policies itself. Instead, it partners with:
> **CONNECT, powered by American Family Insurance**
> (previously known as Ameriprise Auto & Home Insurance)
This means:
– Your **policy is issued by CONNECT/American Family**, not by Costco.
– You must be a **Costco member** to access these offers.
– Costco negotiates some **exclusive perks and potential savings** for its members.
👉 **Important:** Availability and pricing vary by state. In some areas, CONNECT may not write new auto policies, or benefits may differ.
—
## 🧩 2. How Costco Car Insurance Works
Think of Costco car insurance as a **member-only program**:
1. **You keep your Costco membership**
– Any membership tier works (Gold Star, Business, Executive).
– Executive members may receive **additional benefits** or discounts.
2. **You request a quote through Costco’s website or phone**
– You’re redirected to **CONNECT**, but the quote is tied to your membership.
– Costco-branded landing pages ensure you get member pricing.
3. **You choose coverage and finalize your policy**
– Policy is managed directly with **CONNECT/American Family**.
– You pay premiums to the insurer, not to Costco.
4. **You can manage your policy online or by phone**
– Claims, billing, and changes go through CONNECT’s service team.
—
## 🛡 3. What Coverage Does Costco Car Insurance Include?
Costco’s auto insurance program offers all the standard coverages most drivers need, plus some optional add-ons.
### Core Coverages (Standard)
These are the typical options you’ll see:
– **Liability Coverage**
– Bodily injury liability
– Property damage liability
– Required in almost every state
– **Collision Coverage**
– Pays for damage to your car from accidents (regardless of fault, after deductible)
– **Comprehensive Coverage**
– Covers non-collision damage: theft, vandalism, fire, hail, falling objects, animals, etc.
– **Uninsured/Underinsured Motorist (UM/UIM)**
– Helps when the at‑fault driver has no insurance or not enough coverage
– **Medical Payments / Personal Injury Protection (PIP)**
– Helps pay medical bills for you and your passengers, depending on state rules
—
### Optional Add-Ons & Extras
CONNECT via Costco also offers optional coverage features, such as:
– 🚘 **Roadside Assistance**
– Towing
– Jump-starts
– Flat tire help
– Lockout services
– 🚗 **Rental Car Reimbursement**
– Helps pay for a rental car if your vehicle is in the shop due to a covered claim
– 💼 **Gap Coverage** (varies by state)
– Pays the difference between your car’s actual cash value and the amount you owe on your auto loan/lease if your car is totaled
– 🌎 **Glass Coverage**
– Windshield repair/replacement with lower or no deductible (where available)
> ✔ Tip: Always ask the agent which **member-only perks** are included in your state—benefits can vary.
—
## 💰 4. How Much Does Costco Car Insurance Cost?
Pricing is individual and depends on:
– Your **state & ZIP code**
– Age, driving record, claims history
– Type of vehicle(s)
– Mileage & usage (commute vs. personal)
– Coverage limits & deductibles
– Credit-based insurance score (in most states)
However, **Costco frequently advertises savings** compared to policyholders’ previous insurers, especially for safe drivers.
### Typical Savings Potential
While exact savings vary, Costco members often report:
– Lower premiums than major brands **for similar or better coverage**
– Extra discounts if you:
– Bundle auto + home
– Have a clean driving record
– Insure multiple cars
– Are an Executive member (in eligible states)
> 📌 Important: The **only way to know your savings** is to get a quote and compare it to your current insurer with the same coverage limits.
—
## 🏷 5. Costco Car Insurance Discounts
To stay competitive, CONNECT offers a range of discounts—many similar to other companies, plus some membership perks.
### Common Discounts You May Qualify For
– 👨👩👧👦 **Multi-Vehicle Discount**
– Insure more than one car on the same policy.
– 🏡 **Bundling Discount**
– Combine auto with home, condo, or renters insurance through CONNECT.
– ✅ **Safe Driver / Good Driving Discount**
– No accidents or violations for a set period.
– 🎓 **Good Student Discount**
– For young drivers who maintain solid grades (e.g., B average or better).
– 🚗 **Low Mileage Discount**
– If you drive fewer miles per year.
– 🧓 **Mature Driver Discount**
– For older drivers who complete approved defensive driving courses (varies by state).
– 🆕 **New Car Discount**
– For new or newer vehicles with modern safety features.
– 🔒 **Vehicle Safety & Anti-Theft Discounts**
– Airbags, ABS, anti-theft devices, tracking systems, etc.
– 💳 **Paid-in-Full or Auto-Pay Discounts**
– Save by paying your premium annually or enrolling in automatic payments.
—
## ⭐ Executive Members: Are There Special Benefits?
Costco **Executive Members** may receive enhanced benefits or discounts, depending on state regulations. These can include:
– Additional **discounts on premiums**
– Enhanced **benefit features** on some policies
– Occasional special promotions or incentive programs
Not all states allow carrier-specific perks tied to membership tiers, so ask the representative:
> “Are there any extra benefits or discounts for Executive Members in my state?”
—
## 📊 6. Pros & Cons of Costco Car Insurance
If you’re deciding whether to switch, weigh the main advantages and disadvantages.
### ✅ Pros of Costco Car Insurance
**1. Potentially Lower Prices for Members**
Costco is known for negotiating better deals for its members, and insurance is no exception. Many drivers experience **meaningful savings**, especially with clean driving records.
**2. Strong, Established Insurer Partner**
CONNECT is backed by **American Family Insurance**, a large and established carrier with experience in auto and home policies.
**3. Member-Only Perks & Discounts**
Your Costco membership may provide access to **exclusive rates** and extra benefits not available to non-members.
**4. One-Stop Convenience**
If you already shop at Costco and use other member services (like travel, pharmacy, or financial services), adding insurance to the mix can simplify your life.
**5. Package Deals With Home/Renters**
Bundling auto with home or renters insurance through CONNECT often unlocks **even bigger savings**.
—
### ❌ Cons of Costco Car Insurance
**1. Membership Required**
You must be a Costco member to qualify—so your **membership cost** should be factored into your total savings.
**2. Availability by State**
In some locations, CONNECT may not offer new policies or certain features. Benefit details vary widely by state.
**3. Not Always the Cheapest**
While many members save, there’s no guarantee. Another insurer might still beat Costco’s program for your individual situation.
**4. Mixed Customer Service Reviews**
Like most national insurers, customer experience can vary. Some customers report positive claims handling, while others report billing or communication frustrations.
**5. Can Change Over Time**
Costco can **change partners** or modify perks, so what’s true today may look different a few years from now.
—
## 🔍 7. Is Costco Car Insurance a Good Option for You?
Costco’s insurance program may be especially attractive if you:
– Already have a **Costco membership** (or plan to use one regularly)
– Are a **safe driver** with few or no accidents or tickets
– Have relatively **good credit** (in states where that impacts rates)
– Want to **bundle auto + home/renters**
– Prefer dealing with **large, brand‑name institutions**
It may be **less ideal** if you:
– Don’t want to maintain a Costco membership
– Have multiple recent accidents or violations
– Need highly specialized coverage or a non-standard policy
– Live in a state where CONNECT does not actively write policies or has higher-than-average rates
—
## ⚖ 8. Costco vs Traditional Car Insurance Companies
When comparing Costco’s offering through CONNECT to other insurers (GEICO, Progressive, State Farm, Allstate, etc.), focus on more than just price.
### Key Comparison Factors
1. **Premium Cost (Apples-to-Apples Coverage)**
– Same liability limits
– Same deductibles
– Same add-ons (e.g., roadside assistance, rental coverage)
2. **Financial Strength of the Carrier**
– Ratings like AM Best, Moody’s, or Standard & Poor’s
– Stability matters for long-term claims-paying ability.
3. **Claims Experience**
– Speed of handling
– Fairness of settlements
– Availability of local adjusters or repair networks
4. **Customer Service & Accessibility**
– 24/7 claims availability?
– Online account and mobile app quality
– Phone wait times and support
5. **Long-Term Pricing Stability**
– Does the insurer frequently increase rates at renewal?
– Ask the agent directly about typical renewal trends.
—
## 🧮 9. How to Estimate Your Potential Savings
Before switching to Costco’s insurance partner, follow this quick comparison process:
### Step 1: Gather Your Current Policy Info
Have these handy:
– Current **declarations page** (coverage limits & deductibles)
– Vehicle make, model, year, VIN
– Driver info (ages, license numbers)
– Current premium: monthly and annual
### Step 2: Get a Costco (CONNECT) Quote
You can:
– Go to the **Costco website → Services → Insurance**
– Or call the dedicated **Costco/CONNECT phone number**
Provide:
– Your membership number
– Current coverage details (match them exactly)
– Any relevant info to qualify for discounts
### Step 3: Compare Side-by-Side
Create a simple checklist like this:
| Feature / Coverage | Current Insurer | Costco (CONNECT) |
|————————–|—————–|——————|
| Liability Limits | | |
| Collision Deductible | | |
| Comprehensive Deductible | | |
| UM/UIM Coverage | | |
| Roadside Assistance | | |
| Rental Car Coverage | | |
| Annual Premium | | |
| Discounts Applied | | |
👉 **Only switch** if Costco offers **equal or better coverage** at a lower price OR significantly better coverage at a similar price.
—
## 🧭 10. How to Get Costco Car Insurance (Step-by-Step)
Here’s a clear path to check your options:
### 1️⃣ Confirm Your Membership
– Ensure your **Costco membership is active**.
– Decide if you’ll upgrade to **Executive** (may unlock better savings, but weigh the fee vs. benefits).
### 2️⃣ Visit Costco’s Insurance Page
– Log in to **Costco.com**
– Navigate to: **Services → Insurance → Auto & Home**
– Click through the **auto insurance** option to reach the CONNECT platform.
### 3️⃣ Request a Quote
You’ll be asked for:
– Name, date of birth, address
– Costco membership number
– Vehicle details (year, make, model, VIN if available)
– Driving history (tickets, accidents)
– Desired coverage levels (consider matching your current policy first for fair comparison)
### 4️⃣ Review the Offer
Look closely at:
– Premium (monthly and annual)
– Deductibles (higher deductibles = lower premium, but more out-of-pocket if you file a claim)
– Included benefits and add-ons
– Available discounts and eligibility requirements
### 5️⃣ Ask Clarifying Questions
Before deciding, ask:
– Are there any **extra Executive Member perks** in my state?
– How are **claims handled** (repair network, rental coverage, online tracking)?
– What are the **cancellation terms** if I decide to switch later?
### 6️⃣ Decide & Switch (If It Makes Sense)
If the numbers and coverage look good:
– Purchase the new policy and set the **effective date**.
– **Do not cancel** your old policy until your new policy is active and documents are confirmed.
– Inform your lender/lease company if required (for financed vehicles).
—
## 📌 11. Key Takeaways: Is Costco Car Insurance Worth It?
To recap:
– ✅ **Yes, Costco offers car insurance**—through its partner **CONNECT by American Family Insurance**, not directly.
– ✅ It can provide **competitive pricing**, especially for safe drivers and those who bundle policies.
– ✅ Membership-based discounts and perks can make it a **strong value**, particularly if you already use Costco regularly.
– ❌ It’s not automatically the cheapest or best for everyone—you still need to **compare quotes**.
– ❌ Availability, benefits, and discounts vary significantly **by state**.
—
## 🧠 Final Recommendation
If you’re a Costco member—or considering becoming one—and you want to cut your auto insurance bill:
1. **Get a detailed quote through Costco/CONNECT.**
2. Match the coverage levels to your current policy.
3. Compare price, coverage, and service side-by-side.
4. Switch only if the **overall value (coverage + cost + service)** is clearly better.
Used strategically, Costco’s car insurance partnership can be another powerful way to **save money without sacrificing protection** on the road.
