How does Costco stack up against other auto insurance options?
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.
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.
Lifetime renewability limitations and exclusions:
Not available if you:
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.
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.
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: