Costco Insurance Review
Costco auto insurance at a glance
Pros | Cons |
---|---|
A wide range of coverage options and benefits | Limited availability |
Affordable premiums | Poor customer service ratings |
An option for non-cancellation for Executive Membership holders | |
Good bundling 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 $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
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.

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 Company | Average Annual Premium |
---|---|
Allstate | $2,022 |
Farmers | $2,790 |
GEICO | $1,494 |
Nationwide | $1,476 |
Progressive | $1,482 |
State Farm | $1,480 |
USAA | $1,214 |
Costco Car Insurance (CONNECT) | $1,068 |
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.
Auto insurance data methodology
The auto insurance rates published in this guide are based on the results of The Zebra's State of Insurance car insurance pricing analysis. This analysis of more than 83 million insurance rates spans every U.S. ZIP code, using a sample user profile: a 30-year-old single male driver with a Honda Accord, good credit and full coverage at these levels:
- $50,000 per person/$100,000 per incident for bodily injury liability
- $50,000 per incident for property damage liability
- $500 deductibles for collision and comprehensive coverage
To generate pricing for particular rating factors, we adjusted the driving profile based on common pricing factors used by major car insurance companies. These factors include credit score, coverage level, driving record and others.
In some instances, average rates from Liberty Mutual were derived from internally sourced sales data.
Costco eligibility and fees
You need to be a Costco member to qualify for its auto insurance discounts. Below are the annual fees per membership tier for Costco.
Membership Title | Annual Fee |
---|---|
Gold Star | $60 |
Gold Star Executive | $120 |
Business | $60 |
Business Executive | $120 |
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.
Costco homeowners insurance review
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.

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.
Related content
- How Long Can You Stay on Your Parents' Car Insurance Policy?
- Car Insurance for Homeowners
- Summer Car Insurance
- 6-Month vs. Annual Car Insurance
- GEICO vs. Costco Car Insurance
- Car Insurance with Kids
- Same-Day Car Insurance
- Car Insurance for Condo Owners
- Pay-Per-Mile Car Insurance
- State Farm vs. Costco Car Insurance
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.