GEICO vs. Costco Car Insurance: Which is Better?

Does Costco's auto insurance program beat GEICO's?

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Costco auto insurance vs. GEICO

Most insurance shoppers have heard of GEICO. The company is one of the most popular car insurance providers in the US, serving all 50 states. Costco car insurance is considerably less popular. If you’re a Costco cardholder, you could qualify for a hefty discount on car insurance through Ameriprise. Let’s explore the major differences between GEICO and Costco auto insurance through Ameriprise. 

*If you're only looking for information related to Costco car insurance, see our guide.

  1. Premium comparison: GEICO vs. Costco
  2. Coverage options
  3. Where are these policies available?
  4. Customer service & reviews


 

GEICO vs Costo car insurance cost comparison

To compare GEICO and Costco car insurance rates, we compared prices for a single driver with matching coverage levels and driving history (methodology). Costco auto insurance — through Ameriprise — is cheaper than GEICO, with all metrics constant.

 

Car Insurance Provider
Average 6-Month Premium
Costco$534
GEICO$747

On average, GEICO charges $213 more for a six-month policy than does Ameriprise — about 40%. On a monthly basis, Ameriprise is $35 cheaper than GEICO.

 


 

Coverage options

With basic coverage, GEICO and Ameriprise provide the same protection. The insurers' liability, collision, comprehensive, and state-specific requirements are the same. Once you dive into the finer details of each coverage option, you'll find differences. Let’s explore.

 

Gap insurance

Gap insurance is designed to cover the gap between your insurance company's valuation of your vehicle after it's totaled and the amount left on your loan. If you total your new-ish vehicle while paying installments on a $25,000 loan, your insurance company will only pay you for the value of your car at the time it was totaled. Because vehicles depreciate rapidly, it’s unlikely your claims payout will equal the $25,000 MSRP you're paying. Gap insurance is designed to cover this difference.

GEICO does not provide gap insurance, but Costco's policies do. This coverage is often required for vehicles that are leased or financed, so GEICO might not be a great option for you if you'd like the peace of mind provided by gap coverage.

You can purchase gap insurance through your auto financing company. For more information regarding gap coverage, see our article here.

 

Lifetime renewability

This feature is only available for Costco Executive Cardholders, who won't face insurance cancellation after multiple accidents. Many car insurance companies will cancel or non-renew your policy if you’ve had multiple claims.

There are some restrictions to Costco's lifetime renewability add-on:

  • If you live in Maryland or Michigan
  • Have “major violations”
  • Fail to pay your premium
  • Fail to provide requested documentation
  • Move to a state Ameriprise does not sell in
  • Purchase an uninsurable vehicle

GEICO does not specifically state its non-renewal policy. A general rule of thumb is you will be non-renewed if you have three claims within three years.

 

Telematics

Neither company offers telematics or a usage-based insurance program. These programs measure your driving habits in order to more accurately price your premiums. If you’re a safe driver, you can earn a discount.

Learn more about usage-based insurance and telematics.

 


 

GEICO vs Costco car insurance: where are they sold?

GEICO operates in all 50 states in the US, while Costco’s program is a little more selective. You must be a member of Costco to qualify for car insurance, and it may only be available in states in which Ameriprise sells policies. Ameriprise does not offer coverage in the below states:

Alaska, California, Connecticut, Florida, Hawaii, Idaho, Louisiana, Maine, New Hampshire, North Carolina, North Dakota, Rhode Island, Tennessee, Washington, and Wyoming.

 


 

GEICO vs Costco car insurance customer service comparison

Dealing with a car insurance company is never fun. If you’ve ever been through the claims process, you know decent customer service is crucial. Overall, Ameriprise is ranked more favorably than GEICO in terms of customer service and JD Power ratings. However, Ameriprise's unofficial customer reviews are considerably less favorable. Primary themes include difficult claims payouts and unpredictable rate increases. No matter which company you choose, do your research first. Compare as many companies as possible to find the best service for the best price.



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Additional Resources

 

 

Methodology

These rates were determined using five zip codes from representative zip codes in the US. We elected the same coverage level for each quote to get comparable rates.

  • Austin, TX — 78751
  • Columbus, OH— 43235
  • Glenwood, IL— 60425
  • Woodstown, NJ— 08098
  • Mcintosh, NM— 56556

Learn more about our methodology here.