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Costco auto insurance at a glance

  • A wide range of coverage options and benefits
  • Affordable premiums
  • An option for non-cancellation for Executive Membership holders
  • Good bundling options
  • Limited availability
  • Poor customer service ratings

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3.5 Rating from The Zebra Question mark icon

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 $581, 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 when deciding if it's the best deal for you.

The Zebra Customer Satisfaction Survey — 4.3/5: American Family was given an overall star rating of 4.3 for auto insurance.

Claims satisfaction (J.D. Power) — Below average: J.D. Power rates American Family below average in overall claims satisfaction.

Customer satisfaction (J.D. Power) — Excellent: American Family received the top rating for overall customer satisfaction among midsized insurers in the 2021 J.D. Power study. 

Financial strength — Excellent: American Family's strong financial status, as graded by AM Best, underscores its stability and reliability.

NAIC Rating — Good: The National Association of Insurance Commissioners (NAIC) received fewer complaints than average regarding American Family's insurance policies in 2020.

*ratings are based on Connect by American Family Insurance

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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:

Drivers in Costco's Executive Membership Tier are guaranteed that their coverage will not be dropped after an accident. 


Auto Discounts 

Costco/Connect policyholders can take advantage of a number of money-saving discounts. While eligibility varies depends on your location, the following discounts are some of the most common available to many drivers:

Good driver discount (California only) 

Policyholders in California can receive a Good Driver discount to save money on premiums.


Premier safety discount 

If all the drivers on your policy spotless driving records, you can benefit from a discount.


Defensive driver discount 

Defensive driver courses — also referred to as “refresher courses” — can lead to savings. 

costco discounts

Vehicle safety features 

Certain safety features can lead to additional discounts on your car insurance. These include:

  • Anti-lock brakes
  • Airbags
  • Automatic seatbelts
  • Anti-theft devices


Garaging discount

Vehicles parked in a garage overnight may be eligible for discounts (only available in certain areas).


Good student discount 

Full-time students who can prove they meet certain academic criteria may be eligible for additional savings. 


Student away discount 

If your student driver attends school more than 100 miles from your home, you may be able to leave them on your policy and save money. This means that you won’t have to pay the full cost as they won’t be driving your vehicle every day. This discount is not available for students who have a vehicle at school.


Education discount 

Drivers who complete at least four years of post-high-school education could be eligible for a discount. 


Multi-car discount 

Insuring multiple vehicles with Costco/Connect can lead to lower rates. 


Insurance bundling discounts

Putting your insurance policies together can save you money. Costco/Connect has options for bundling home, auto, renters, life, and umbrella, allowing you to save money and avoid the hassle of keeping up with multiple policies.

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 Provider Average 6-Month Premium
Allstate $1,011
Farmers $1,395
GEICO $747
Nationwide $738
Progressive $741
State Farm $740
USAA $607
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.

Costco eligibility and 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


Lifetime renewability

Insurance 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. Below are the 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

Find a policy today by comparing rates.

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Costco homeowners insurance review

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4.5 Rating from The Zebra

Another popular option for Costco members is Costco homeowners insurance. Similar to the auto insurance product, Costco homeowners insurance is powered by Connect Insurance and contains all of the standard home coverage options that you would expect. Below you'll find a rundown of some of their unique coverage and discount options. 


Identity theft protection

If you are the victim of identity theft, this coverage goes to getting you back on track and will cover up to $5,000 in expenses. 


Stolen credit card/check fraud coverage

This coverage can help protect you against unauthorized credit card use. This coverage does not require a deductible. 

costco home insurance

Food spoilage protection

Power outages or equipment breakdowns can lead to huge losses in your kitchen. This coverage goes toward protecting you from the financial hit required to restock your food supplies. 


Lock replacement expense coverage

Victims of theft can have the cost of lock replacement covered through this perk of Costco home and condo policies. 


Wildfire loss prevention and response

In states prone to wildfire, Costco/Connect insurance can help determine if your property is at risk and can provide services that can help to mitigate risks. 

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

In general, the company does offer a wide array of coverage options that tend to be affordable. Those looking for affordable coverage might find that it meets their needs (provided that they are Costco members). When looking for a new policy, it's always a good idea to do your own research by reading reviews and comparing insurance quotes to find the best policy for your needs. 

Make an informed decision: compare insurance rates today.

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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.

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Ava LynchSenior Analyst

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior analyst, providing insights and data analysis as one of The Zebra's property and casualty insurance experts.

Ava’s insurance career began as an agent with Farmers Insurance. Over the years, she has become an authority in all things property and casualty insurance, helping her to write informative guides for shoppers.

Ava’s work has been cited in publications such as InvestopediaThe BalanceMoney.comLiberty Mutual, U.S. News & World Report, GasBuddy, Car and Driver and Yahoo! Finance.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.