What's the Costco discount for American Family?

I’m a Costco member and saw that they offer American Family home insurance through their Connect program. You probably can't tell me exactly what the discount actually adds up to, but anything else you know would be helpful. Has anyone actually used it? Is it a real discount or just a marketing perk? I've tried some of the other Costco 'deal' things and they weren't really any better or different.

The Costco insurance program with American Family Insurance is real, but it helps to understand what it actually is. Costco itself doesn’t sell or underwrite insurance. Instead, it partners with American Family, which provides the policies offered through the Costco program (which include car, home, and renters insurance).

As a Costco member, you may qualify for a member-only discount on home insurance in most states. Usually the only requirement is providing your Costco membership number when you request a quote. Exactly how much you’ll save is hard to predict, because insurance prices depend on factors like:

• Your home’s rebuild cost
• Your ZIP code and local risks
• Your deductible and coverage choices
• Other discounts you qualify for

So the “Costco discount” isn’t a flat percentage. For some homeowners it’s noticeable, while for others it may be fairly small. Like any insurance rate (or discount), results vary widely by location and property details.

Costco Executive members may also get a few extra perks, such as limited reimbursement for glass repair or locksmith costs if you’re locked out of your home.

So is it just a marketing perk? Not really. It’s basically a negotiated member discount and a few small benefits on an American Family-backed policy.

If you’re already a Costco member, it’s usually worth getting a quote to compare. Just keep in mind the same rule that applies to any insurance: the best way to know if it’s a good deal is to compare it with a few other insurers offering similar coverage. Our in-house agents are also happy to help you shop around, so feel free to reach out when you're ready!