Costco is widely recognized for bulk retail and its popular food court, but in 2025, it also offers a full-fledged car insurance program available only to its members. This program is backed by Connect, an insurance provider under the umbrella of American Family Insurance. Costco leverages its buying power and membership base to secure competitive rates and member-only perks.
In this in-depth analysis, we explore how Costco car insurance works, its coverage features, pricing, benefits, limitations, and whether it is the right choice for drivers.
1. How Costco Car Insurance Works
Costco does not underwrite insurance directly. Instead, through its Costco Insurance Agency, the company partners with Connect (American Family Insurance) to offer auto insurance to Costco members. That means the policies and claims are managed by Connect, while Costco facilitates access and provides a discount structure specific to members
To qualify, you must hold a current Costco membership—either Gold Star, Business, or Executive. Quotes can be obtained online before purchasing a membership, but coverage can only be bound if you’re a member FinanceBuzz
2. Coverage Offered
Costco car insurance through Connect includes standard auto insurance coverage:
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Bodily injury and property damage liability
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Uninsured/underinsured motorist (UM/UIM)
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Collision coverage
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Comprehensive coverage (including theft, fire, weather, animal strikes)
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Personal Injury Protection (PIP) or MedPay, depending on state US News
Plus, Costco policies offer several value-added benefits, often included at no or low cost:
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Glass repair deductible waiver for minor windshield damage under comprehensive ($250 limit) en.wikipedia.org
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Stolen key coverage that waives deductible if replacement costs under $250
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Accident travel expense coverage, reimbursing travel or lodging if the accident occurs more than 100 miles from home
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Guaranteed Auto Protection (GAP insurance) up to 120% of vehicle value, including new-car replacement in first year Insurance Business America
These extras—especially accident forgiveness for some drivers and Executive benefits—can provide real extra value.
3. Pricing and Average Rates in 2025
3.1 National Averages and Member Savings
According to Business Insider and other reviews, Costco auto insurance averages about $114 per month or $1,368 annually, which is around 16% cheaper than the national average of $1,638 per year Kiplinger. On average, members switching to Connect save approximately $596 in the first year combining auto and home policies Clark
3.2 Rate Variation by Age and Coverage
AutoInsurance.org reports sample rates:
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For a 60‑year‑old female, least coverage starts at about $31/month, full coverage around $77/month.
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Conversely, a 16‑year‑old male might pay $201/month for least and $472/month for full coverage Auto Insurance
These rates align with broader industry pricing patterns: younger drivers generally pay more, even with discounts.
3.3 Factors Affecting Your Rate
Premiums vary based on:
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ZIP code and location
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Vehicle type and age
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Driving record and claims history
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Credit score (where allowed by state law)
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Level of coverage and deductible selected
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Membership type (Executive vs. Gold Star)
4. Discounts and Member-Only Savings
Costco members can stack many discounts with Connect:
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Costco Membership Discount: Required for access; Executive members often qualify for deeper discounts than Gold Star Finance Buzz
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Premier Safety Discount: No accidents, violations, or claims in the past four years AutoInsurance.com
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Defensive Driver Discount: Certificate from a DMV-approved course UMA
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Vehicle Safety Feature Discount: For anti-theft systems, airbags, airbags, anti-lock brakes, etc.
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Garaging Discount: Parking your vehicle in a secure, enclosed location US News
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Good Student Discount: Academic performance for full-time students (commonly 3.0+ GPA)
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Student Away Discount: Applicable when student uses car only during occasional visits home Clark
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Multi-Vehicle and Multi-Product Bundling Discounts: Includes discounts for insuring many vehicles or bundling auto and homeowner policies Tenure Discount: Reward for long-term policyholders
In California, a good driver discount also applies specifically to drivers with no infractions in that state US News.
5. Member Benefits: Ordinary and Executive Levels
5.1 Executive Member Perks
Executive-level Costco membership ($130/year) entitles members to exclusive perks such as:
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Lifetime Renewability: As long as Executive membership is maintained, renewal is guaranteed unless you violate policy terms. Not available in CA, MD, or MI
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Roadside Help: Typically up to $75 per incident at no extra cost Costco Kiplinger
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Home glass repair waiver and home lockout help for bundlers Costco
5.2 Standard Executive and Gold Star MSRP Savings
Many savings are accessible to both Executive and Gold Star members, but extras like roadside help and lifetime renewability are Executive-tier only in participating states .
6. Availability by State
Costco auto insurance through Connect is not available nationwide. Coverage is unavailable in certain states:
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Not available for new policies in California, Florida, Alaska, Louisiana, Maine, North Dakota, Wyoming, and West Virginia (availability may vary slightly by source) Finance Buzz Business Insider
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Be sure to confirm current availability before planning coverage.
7. Claims and Customer Satisfaction
7.1 Claims Process
Claims can be filed 24/7 online or via phone at Connects claims hotline. Members have the ability to choose their licensed repair facility and may receive faster service if needed—Connect aims for initial contact within 24 hours of filing
Source _ Business Insider UMA Technology.
7.2 Customer Satisfaction
While generally regarded favorably, customer satisfaction reviews are mixed:
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Connect (American Family) has solid financial stability, and some regions report high satisfaction.
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However, some negative customer reviews highlight issues with claims handling or service responsiveness in particular areas Auto Insurance
8. Pros and Cons Summary
Advantages
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Lower-than-average premiums for many members
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Exclusive member discounts and coverage perks
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Standard and optional coverages comparable to competitors
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Executive member benefits like lifetime renewal and roadside service
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Glass deductible waiver and GAP insurance included
Limitations
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Must hold a paid Costco membership
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Not available in all states
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Some key benefits (e.g., lifetime renewability) restricted by membership tier or geography
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No rideshare or usage-based telematics coverage currently offered May not be cost-effective for younger drivers or high-risk profiles .
9. Is Costco Car Insurance Right for You?
Scenarios Where It Makes Sense:
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You’re already a Costco member and plan to keep membership long-term.
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You’re bundle-shopping—home and auto together—for discounts.
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You drive responsibly and can qualify for good-driver and vehicle safety discounts.
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You want basic to comprehensive coverage with extras like accident travel benefits, GAP, and glass deductible waivers.
When It May Not Fit:
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If you live in an excluded state or plan to move there.
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If you’re a high‑risk driver (teen or poor record) and pricing is higher than competitors.
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If you need rideshare or telematics-based insurance not yet supported.
10. How to Get a Quote and Apply
Step-by-Step:
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Visit the Costco Auto & Home Insurance page or Connect.
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Provide membership number and ZIP code.
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Input driver and vehicle information.
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Request both small and full coverage options to compare rates.
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Review coverage, quotes, and discount eligibility.
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Buy a Costco membership if you’re not yet enrolled.
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Finish coverage and premium payment.
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Receive policy documents and access digital account for management and claims
Frequently Asked Questions (FAQ) – Costco Car Insurance (2025 Edition)
1. Does Costco offer its own car insurance?
No, Costco does not directly underwrite car insurance. Instead, it partners with Connect, a subsidiary of American Family Insurance, to offer car insurance to Costco members. While Costco facilitates access, the insurance policies, claims, and services are managed by Connect.
2. Who is eligible for Costco car insurance?
Only Costco members are eligible to buy car insurance through the Costco program. Both Gold Star and Executive members can apply, but Executive members often receive more benefits like roadside help and lifetime renewability in select states.
3. Is Costco car insurance available in all 50 states?
No. Costco car insurance is not available in every state. As of 2025, it is unavailable in states like California, Alaska, Florida, Louisiana, North Dakota, West Virginia, Wyoming, and Maine. Availability may change, so it’s important to confirm eligibility based on your location.
4. How can I get a quote for Costco car insurance?
You can request a quote:
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By visiting the Costco Auto & Home Insurance page
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Through the Connect by American Family website
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By calling Connect’s customer service line You’ll need to provide your ZIP code, Costco membership number, and information about your vehicle and driving history.
5. What types of coverage are included with Costco car insurance?
The coverage includes:
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Liability (bodily injury and property damage)
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Collision
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Comprehensive
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Uninsured/underinsured motorist
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Medical payments or personal injury protection (depending on the state) Extra perks may include glass repair waivers, accident travel reimbursement, and GAP insurance.
6. Are there any Costco-specific discounts?
Yes. Costco members receive exclusive discounts not available to the general public. These include:
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Costco membership discount
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Executive member benefits
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Bundling discounts (if you also buy home insurance)
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Good driver and good student discounts
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Multi-vehicle and long-term customer discounts
7. What is the average cost of Costco car insurance?
According to many independent sources, average premiums through Costco car insurance are approximately $1,368 per year, which is lower than the U.S. average of about $1,638. But, rates vary by age, location, driving history, and coverage level.
8. Is roadside help included with Costco car insurance?
Yes, but only for Executive members. Roadside help is included up to a limited amount per incident (typically around $75). Gold Star members can buy it as an optional add-on.
9. What is the “lifetime renewability” benefit?
Executive members in participating states can access lifetime renewability, meaning your policy won’t be non-renewed for claims history or driving record—as long as you maintain your Costco membership and meet basic policy terms. This benefit is not available in California, Maryland, or Michigan.
10. Is GAP insurance included with Costco car insurance?
Yes, Costco’s car insurance program includes GAP coverage (Guaranteed Auto Protection) at no extra cost often. It covers up to 120% of your vehicle’s value, helping pay off your loan or lease if your car is totaled or stolen.
11. How does Costco car insurance compare to GEICO or Progressive?
While companies like GEICO or Progressive offer strong national coverage and usage-based plans, Costco offers competitive pricing and exclusive member perks. However, Costco’s program lacks telematics (usage-based) options and is limited by state availability.
12. Can I bundle Costco car insurance with other types of insurance?
Yes. Costco, through Connect, allows you to bundle homeowners, renters, and auto insurance. Bundling can save you hundreds of dollars per year and streamline your policy management.
13. How do I file a claim with Costco car insurance?
Claims are filed directly with Connect (American Family Insurance). You can file:
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Online through the Connect website
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Over the phone 24/7
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Through a mobile app (if available in your area)
14. What kind of customer service does Connect provide?
Connect has received generally favorable ratings for financial strength and stability. However, customer satisfaction may vary by region. Some users praise cost savings and benefits, while others report issues with claims delays or billing errors.
15. Does Costco car insurance offer accident forgiveness?
Yes, accident forgiveness may be available to drivers with clean driving records, although eligibility depends on the state and policy type. It typically means your first at-fault accident won’t increase your premium.
16. Are young or high-risk drivers eligible for Costco car insurance?
Yes, but premiums may be significantly higher for young, new, or high-risk drivers. Costco insurance tends to offer the best value for experienced drivers with clean records.
17. What happens if I cancel my Costco membership?
If you cancel your membership, your car insurance policy may be affected.
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Standard policyholders may lose access to discounted rates.
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Executive members lose access to lifetime renewability and roadside help. Always consult Connect before canceling your membership.
18. Does Costco offer commercial or business auto insurance?
No, as of 2025, Costco’s auto insurance program does not cover commercial vehicles or business use. It is intended for personal-use vehicles only.
19. Can I manage my Costco car insurance policy online?
Yes. Connect offers online account management, allowing you to:
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View policy documents
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Pay premiums
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Make changes to your coverage
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Track claims status Some features may vary by state.
20. Is Costco car insurance worth it in 2025?
For many Costco members—especially Executive members—Costco car insurance offers excellent value, competitive pricing, and unique benefits. However, it’s best to compare quotes with other major insurers to ensure it fits your individual needs, especially if you live in a state where Connect coverage is limited or unavailable.
Conclusion
Costco car insurance, via Connect and American Family Insurance, offers a viable and often cost-effective option for Costco members—with perks and discounts not typically available through mainstream insurers. For middle-aged drivers with clean records in states where the program is offered, pricing can be highly competitive. Executive members gain more perks that add to long-term convenience and value.
However, it’s critical to shop and compare quotes based on your risk profile, desired coverage, and eligibility for discounts. Younger or high-risk drivers may find better deals elsewhere. As always, match your policy needs to available options before committing.
