Learn more about Costco's car insurance offering, sold in association with CONNECT, powered by American Family Insurance.
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.
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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.
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.
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).
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. Below are the lifetime renewability limitations and exclusions.
Not available if you:
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:
Policyholders in California can receive a Good Driver discount to save money on premiums.
If all the drivers on your policy spotless driving records, you can benefit from a discount.
Defensive driver courses — also referred to as “refresher courses” — can lead to savings.
Certain safety features can lead to additional discounts on your car insurance. These include:
Vehicles parked in a garage overnight may be eligible for discounts (only available in certain areas).
Full-time students who can prove they meet certain academic criteria may be eligible for additional savings.
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.
Drivers who complete at least four years of post-high-school education could be eligible for a discount.
Insuring multiple vehicles with Costco/Connect can lead to lower rates.
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.
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.
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.
This coverage can help protect you against unauthorized credit card use. This coverage does not require a deductible.
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.
Victims of theft can have the cost of lock replacement covered through this perk of Costco home and condo policies.
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.
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 | $60 |
Gold Star Executive | $120 |
Business | $60 |
Business Executive | $120 |
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.
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.
Learn more about our rate-gathering methodology.
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:
