Costco Car Insurance For Members

When it comes to finding reliable and affordable auto insurance, Costco members have a unique advantage. Through its partnership with CONNECT by American Family Insurance, Costco offers members exclusive discounts, perks, and benefits on auto insurance policies. For drivers who already enjoy Costco’s wholesale savings, extending those savings into car insurance makes financial sense.

In this comprehensive guide, we’ll explore everything you need to know about Costco car insurance for members—from how it works, available coverage options, benefits, pricing, eligibility, and how to determine if it’s the right choice for your family.

What is Costco Car Insurance?

Costco doesn’t directly underwrite car insurance. Instead, it partners with CONNECT by American Family Insurance, a reputable and highly rated insurer that provides coverage tailored specifically for Costco members.

When you buy a policy through Costco’s insurance program, you’re technically insured by CONNECT, but as a Costco member, you unlock exclusive pricing, discounts, and additional benefits.

Some of the highlights of Costco car insurance for members include:

Exclusive member-only discounts
Roadside assistance (included with most policies)
Lifetime renewability (in most states)
24/7 claims service
Discounts for safe driving and bundling

Coverage Options Available for Costco Members

Like traditional auto insurance, Costco members can choose from standard and optional coverage plans.

Standard Coverages

Liability Coverage
- Covers injury and property damage if you’re at fault in an accident.
- Meets state minimum requirements but can be extended for better protection.
Collision Coverage
- Pays for repairs to your vehicle if it’s damaged in an accident, regardless of who is at fault.
Comprehensive Coverage
- Protects against damage caused by non-collision events (fire, theft, vandalism, natural disasters, hitting an animal, etc.).
Personal Injury Protection (PIP) or Medical Payments Coverage
- Helps cover medical expenses for you and your passengers after an accident.
Uninsured/Underinsured Motorist Coverage
- Protects you if you’re hit by someone without adequate insurance.

Optional Coverages

Roadside Assistance (often included for free)
Rental Car Reimbursement
Glass Repair Coverage
New Car Replacement
Accident Forgiveness (available in some states)

Key Benefits of Costco Car Insurance for Members

Costco members get unique perks that aren’t always available through other insurance providers.

1. Exclusive Discounts for Members

Costco members, especially Executive Members, can save significantly more on premiums compared to non-members.

2. Roadside Assistance Included

If you lock your keys in your car, run out of gas, or need a tow, roadside assistance is included at no additional cost.

3. Lifetime Renewability

Unlike some insurers that may drop coverage after claims or aging, Costco policies often include lifetime renewability (in most states), giving drivers long-term security.

4. Easy Bundling Options

You can bundle car insurance with home, renters, condo, or umbrella insurance through CONNECT for even greater discounts.

5. High Customer Satisfaction

Many members praise Costco’s car insurance for competitive pricing, transparent claims process, and reliable support.

How Much Does Costco Car Insurance Cost for Members?

The exact cost varies depending on:

Your driving history
Vehicle type
Age and location
Coverage limits chosen
Whether you bundle with other policies

On average, Costco car insurance rates tend to be 5–15% lower than many traditional insurers thanks to exclusive member discounts.

For example:

A Costco Executive Member in California may save an additional $60–100 annually.
Bundling home and auto insurance can save members up to 20%.

Eligibility: Who Can Get Costco Car Insurance?

To purchase Costco car insurance, you must be a Costco member. There are two types of memberships:

Gold Star Membership – Standard membership with access to discounts.
Executive Membership – Higher-level membership with maximum discounts on insurance and other Costco services.

How to Get Costco Car Insurance

Visit the Costco Insurance Marketplace online.
Enter your member ID and personal details.
Request a quote from CONNECT by American Family Insurance.
Compare coverage options and select the best fit.
Finalize your policy and enjoy Costco-exclusive benefits.

Pros and Cons of Costco Car Insurance

Like any insurance product, Costco’s car insurance comes with both advantages and drawbacks.

Pros

✔ Lower rates for members ✔ Roadside assistance included ✔ Lifetime renewability available ✔ Wide coverage options ✔ Easy bundling with home/condo insurance

Cons

✘ Only available to Costco members ✘ Coverage not offered in every state ✘ Some customers report higher premiums after renewals ✘ CONNECT by American Family, not Costco, handles claims

Costco Car Insurance vs Other Insurers

Here’s how Costco car insurance for members stacks up against traditional providers:

Feature	Costco (CONNECT)	Geico	Progressive	State Farm
Member-only discounts	✅	❌	❌	❌
Roadside assistance included	✅	Optional	Optional	Optional
Lifetime renewability	✅	❌	❌	❌
Bundling available	✅	✅	✅	✅
Nationwide availability	❌ (not in all states)	✅	✅	✅

Tips for Maximizing Savings on Costco Car Insurance

Upgrade to Executive Membership – This unlocks the biggest discounts.
Bundle Policies – Combine car and home insurance for added savings.
Maintain a Clean Driving Record – Safe driving earns extra discounts.
Use Costco’s Online Quote Tool – Compare different coverage levels before purchasing.
Review Annually – Insurance needs change, so revisit your policy to ensure largest benefits.

Real Member Experiences

Many Costco members report significant savings after switching:

“I saved $300 annually just by moving my two cars over to Costco’s CONNECT program.”
“The free roadside help has already saved me twice—once for a dead battery and once for a flat tire.”
“I switched from Progressive and got almost the same coverage for $25 less per month.”

However, some members mention that renewal rates can increase, which is common in the insurance industry.

Is Costco Car Insurance Worth It for Members?

If you’re already a Costco member, exploring their car insurance option makes sense. With competitive rates, exclusive discounts, and included perks like roadside help, Costco’s program offers great value—especially for Executive Members.

However, if you live in a state where CONNECT doesn’t operate, or if you prefer a specific insurer, you may need to compare quotes from many providers before making a final decision.

Frequently Asked Questions (FAQs) about Costco Car Insurance for Members

1. What is Costco car insurance for members?

Costco car insurance is a special auto insurance program offered only to Costco members through its partnership with Connect by American Family Insurance (formerly Ameriprise Auto & Home Insurance). It provides car insurance policies at competitive rates along with exclusive discounts for Costco members.

2. Who is eligible for Costco car insurance?

Only active Costco members are eligible for Costco car insurance. Both Gold Star and Executive Members can apply, but Executive Members typically receive extra benefits and discounts.

3. How does Costco car insurance work?

Costco itself is not an insurance provider. Instead, it has partnered with Connect by American Family Insurance. When a member requests a quote through Costco, the policy is underwritten and managed by American Family Insurance, but members get special Costco perks.

4. Is Costco car insurance cheaper than other insurance companies?

For many members, Costco car insurance can be more affordable because:

It offers exclusive member discounts.
Executive members may receive higher benefits.
Policies may include free perks like roadside help (in some states).

However, insurance rates depend on your state, age, driving history, and vehicle, so it’s recommended to compare quotes.

5. Does Costco offer car insurance in every state?

No, Costco car insurance is not available nationwide. It is available in most U.S. states, but some states may not be covered. Members should check with Connect by American Family Insurance to confirm availability in their state.

6. What are the benefits of Costco car insurance for members?

Costco members can enjoy:

Exclusive member pricing.
Lifetime renewability (as long as you remain a Costco member and meet terms).
Roadside help (in certain states).
Accident forgiveness (for qualifying members).
Glass repair coverage.
Discounts for safe driving and bundled policies.

7. Does Costco car insurance include roadside assistance?

Yes, in most states Costco car insurance policies include emergency roadside help at no extra cost. Services may include towing, fuel delivery, battery jump-start, and flat tire help.

8. What types of coverage does Costco car insurance provide?

Costco car insurance offers standard auto insurance coverage, including:

Liability coverage (bodily injury & property damage)
Collision coverage
Comprehensive coverage
Uninsured/Underinsured motorist coverage
Medical payments or Personal Injury Protection (PIP) (depending on state law)
Roadside help

9. Can I bundle Costco car insurance with other insurance?

Yes. Members can bundle auto and home insurance policies through Costco’s insurance partner. Bundling often results in extra discounts and more savings.

10. Do Costco Executive Members get extra benefits on car insurance?

Yes. Executive Members often receive more perks, such as higher policy discounts and enhanced benefits, compared to Gold Star members. This makes the Executive Membership more valuable for those purchasing car insurance through Costco.

11. How do I get a Costco car insurance quote?

Members can get a free quote by:

Visiting the Costco Insurance Services page online.
Calling Connect by American Family Insurance directly.
Speaking with a licensed agent assigned to Costco members.

You’ll need basic details like your driver’s license, vehicle information, and driving history.

12. Is Costco car insurance good for new drivers?

Yes, Costco car insurance can be a good option for new drivers because of its competitive pricing and safe-driving discounts. However, premiums for new drivers are generally higher across all insurers. Comparing quotes is still important.

13. Does Costco car insurance offer accident forgiveness?

Yes, in certain states Costco car insurance offers accident forgiveness, which means your first at-fault accident may not raise your premium. Availability depends on your location and driving history.

14. What is the average cost of Costco car insurance for members?

The cost varies widely depending on:

Driving record
Vehicle type
State regulations
Coverage limits

On average, many members report that Costco insurance is 5–15% cheaper than other major insurers, especially when bundling policies.

15. Can I cancel my Costco car insurance anytime?

Yes, you can cancel your Costco car insurance policy at any time. However, depending on state law, you may need to provide advance notice. If you prepaid premiums, you may also receive a refund for unused coverage.

16. Do I need to remain a Costco member to keep my car insurance policy?

Yes. You must maintain an active Costco membership to keep your insurance benefits. If your membership expires, your policy may be canceled, or you may lose member discounts.

17. How does Costco car insurance handle claims?

Claims are handled by Connect by American Family Insurance, not Costco directly. Members can file claims:

Online through the Connect portal.
By phone with a claims representative.
Through a mobile app in some states.

The claim process and response time is like other major insurers.

18. Is Costco car insurance reliable?

Yes. Since it is backed by American Family Insurance, one of the largest insurers in the U.S., Costco car insurance is considered reliable, stable, and well-rated. The program has been around for over two decades.

19. Can I add many cars to my Costco car insurance policy?

Yes, Costco car insurance allows multi-car coverage, and you may receive a discount for insuring more than one vehicle under the same policy.

20. Does Costco car insurance cover rental cars?

Yes, optional rental car reimbursement coverage is available with Costco car insurance. This coverage helps pay for a rental vehicle if your car is in the shop due to a covered accident.

21. Can I transfer my existing car insurance to Costco?

You can switch from your current provider to Costco car insurance at any time. It’s best to time the switch near your policy renewal date to avoid penalties or duplicate coverage.

22. Are Costco car insurance reviews positive?

Yes, most Costco members report positive experiences with affordability and customer service. However, reviews vary by state and individual situation, so it’s always good to compare quotes and check local experiences.

23. Does Costco car insurance offer discounts for safe drivers?

Yes, members can receive discounts for:

Maintaining a clean driving record.
Completing safe driving courses.
Installing safety features in vehicles.
Being a good student driver (for younger members).

24. How do I contact Costco car insurance customer service?

You can contact them through:

The Costco Insurance Services website.
The Connect by American Family Insurance customer service line.
Licensed agents assigned to Costco members.

25. Is Costco car insurance worth it for members?

Yes, for many Costco members, the insurance is worth it because of:

Exclusive member discounts.
Bundling opportunities.
Reliable backing by American Family Insurance.
Extra perks for Executive Members.

However, it’s always recommended to compare with other insurers to ensure you’re getting the best value.

Final Thoughts

Costco isn’t just about bulk groceries and warehouse savings—it also helps members save on essential financial products like auto insurance. Through its partnership with CONNECT by American Family Insurance, Costco delivers competitive rates, added perks, and member-exclusive benefits that make auto insurance more affordable and reliable.

If you’re searching for affordable car insurance with extra perks, Costco car insurance for members is definitely worth considering.