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What is Costco Car Insurance?

How does Costco stack up against other auto insurance options?

Costco auto insurance review

While Costco does not technically sell car insurance, the store offers its members discounts on homeowners, auto, and umbrella insurance policies through CONNECT, powered by American Family Insurance. Costco advertises savings of up to $575, and CONNECT provides benefits such as roadside assistance and lifetime renewability. In order to gauge whether or not Costco auto insurance is a good deal, we compared Costco member insurance rates to rates from top insurance companies (methodology).

The verdict: Costco insurance is cheaper. But it comes with some caveats, so it's important to weigh your options carefully.


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What we'll cover:

  1. How much is Costco car insurance?
  2. What coverage options does Costco offer?
  3. Costco Membership fees
  4. CONNECT, powered by American Family Insurance
  5. Additional resources


How much does Costco car insurance cost?

With all metrics and rating factors constant, CONNECT auto insurance — through Costco — is cheaper than other typical car insurance policies. Costco car insurance offers savings of up to $320 per six-month policy period.


Car Insurance ProviderAverage 6-Month Premium
State Farm$740
Costco Car Insurance (CONNECT)$534


CONNECT, powered by American Family Insurance, charges $53 less per month than the group average. Bear in mind, this generic average may not reflect your situation. Enter your ZIP code below to see personalized rates.


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Costco car insurance: additional coverage options

Among the benefits of Costco's car insurance policies are roadside assistance and lifetime renewability add-ons. Your eligibility may depend on your Costco membership tier.

Roadside assistance:

This covers you if you’re stranded on the side of the road due to a flat tire, dead battery, or keys locked in the vehicle. You will be compensated up to $75 per incident. This $75 does not cover the cost of a battery or fluids (such as gas, oil, or coolant).


Lifetime renewability:

This coverage is available to drivers in Costco's Executive Membership Tier. It guarantees coverage will not be dropped after an accident. This comes with a few caveats.

Lifetime renewability limitations and exclusions:

Not available if you:

  • Reside in Maryland or Michigan
  • Have “major violations”
  • Fail to pay your premium
  • Fail to provide requested documentation
  • Move to a state in which CONNECT does not offer policies
  • Purchase an uninsurable vehicle


Costco membership fees

You need to be a Costco member to qualify for its auto insurance discounts. Below are annual fees per membership tier for Costco.


Membership Title

Annual Fee

Gold Star


Gold Star Executive




Business Executive



Costco membership level breakdowns:

  • Gold Star One provides access to Costco stores and one card per household.
  • Gold Star Executive offers 2% off eligible Costco and Costco travel purchases, plus extra benefits on select Costco services. Members are eligible for the lifetime renewability option with CONNECT.
  • Business membership allows you to add additional people for $60 annually. Membership and all purchases are available for resale.
  • Business Executive includes all possible membership services: 2% off certain items, additional members, and resale value on goods.


Is CONNECT a good insurance company?

CONNECT, powered by American Family Insurance, does not have great customer service or claims satisfaction reviews. The company's NAIC complaint index is above-average. The NAIC receives more consumer complaints regarding CONNECT's claims servicing than it does for a typical insurance company.

CONNECT has a financial strength score of Superior, meaning it has the ability to pay out claims.

Do your own research by reading reviews and comparing insurance quotes


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Additional articles

If you’re looking for more information on car insurance, reference our resources:



These rates were determined using five ZIP codes from across the U.S. 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 rate-gathering methodology.

Ava Lynch LinkedIn

Ava worked in the insurance industry as an agent for four-plus years. Currently providing insights and analysis as one of The Zebra’s resident property insurance experts, Ava has been featured in publications such as U.S. News & World Report, GasBuddy, and Yahoo! Finance.

About The Zebra

The Zebra is not an insurance company. We’re an independent, unbiased partner for consumers, on a mission to help you compare insurance options apples-to-apples, so you can make a truly informed decision. We’re proud because: