Why you can trust The Zebra

The Zebra partners with some of the companies we write about. However, our content is written and reviewed by an independent team of editors and licensed agents. Reference our data methodology and learn more about how we make money.

Costco auto insurance vs. GEICO

Most insurance shoppers have heard of GEICO. The company is one of the most popular car insurance providers in the U.S., selling policies every state. Costco car insurance a less popular option. If you’re a Costco cardholder, you could qualify for a hefty discount on car insurance through CONNECT, powered by American Family Insurance. Let’s explore the major differences between GEICO and Costco auto insurance through CONNECT. 

*If you're only looking for information related to Costco's offering, see our Costco car insurance guide.


GEICO vs. Costo car insurance cost comparison

To compare GEICO and Costco car insurance rates, we compared prices for a single driver with matching coverage levels and driving history (methodology). Costco auto insurance — through CONNECT — is cheaper than GEICO, with all metrics constant.

Car Insurance Provider Average Annual Premium
Costco $1,068
GEICO $1,494

On average, GEICO charges $213 more for a six-month policy than does CONNECT — about 40%. On a monthly basis, CONNECT, powered by American Family Insurance, is $35 cheaper than GEICO.

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.

Decide which car insurance policy is right for you.

or
Location pin icon
No junk mail. No spam calls. Free quotes.

Insurance coverage option comparison: GEICO vs. Costco

With basic coverage, GEICO and CONNECT provide similar levels of protection. The insurers' liability, collision, comprehensive, and state-specific requirements are the same. Once you dive into the finer details of each coverage option, you'll find differences. Let’s explore.

 

Gap insurance

Gap insurance is designed to cover the gap between your insurance company's valuation of your vehicle after it's totaled and the amount left on your loan. If you total your new-ish vehicle while paying installments on a $25,000 loan, your insurance company will only pay you for the value of your car at the time it was totaled. Because vehicles depreciate rapidly, it’s unlikely your claims payout will equal the $25,000 MSRP you're paying. Gap insurance is designed to cover this difference.

Gap insurance is designed to cover the cost difference between the valuation of a totaled vehicle and the amount left on your loan.

GEICO does not provide gap insurance, but Costco's policies do. This coverage is often required for vehicles that are leased or financed, so GEICO might not be a great option for you if you'd like the peace of mind provided by gap coverage.

You can purchase gap insurance through your auto financing company. Learn more about gap coverage.

 

Lifetime renewability

This feature is only available for Costco Executive Cardholders, who won't face insurance cancellation after multiple accidents. Many car insurance companies will cancel or non-renew your policy if you’ve had multiple claims.

There are some restrictions to Costco's lifetime renewability add-on:

  • If you live in Maryland or Michigan
  • Have “major violations”
  • Fail to pay your premium
  • Fail to provide requested documentation
  • Move to a state not covered by CONNECT
  • Purchase an uninsurable vehicle

GEICO does not specifically state its non-renewal policy. A general rule of thumb is you will be non-renewed if you have three claims within three years.

Telematics

Neither company offers telematics or a usage-based insurance program. These programs measure your driving habits in order to more accurately price your premiums. If you’re a safe driver, you can earn a discount.

Learn more about usage-based insurance and telematics.

telematics icons

GEICO vs. Costco car insurance: where are these policies available?

GEICO operates in all 50 U.S. states, while Costco’s program is a little more selective.

You must be a member of Costco to qualify for car insurance, and it may only be available in states in which CONNECT sells policies. The insurer does not offer coverage in the below states:

AlaskaCaliforniaConnecticutFloridaHawaiiIdahoLouisianaMaineNew HampshireNorth CarolinaNorth DakotaRhode IslandTennesseeWashington, and Wyoming.


GEICO vs. Costco car insurance customer service comparison

Dealing with a car insurance company is never fun. If you’ve ever been through the claims process, you know decent customer service is crucial. Overall, CONNECT is ranked more favorably than GEICO in terms of customer service and J.D. Power ratings. However, CONNECT's unofficial customer reviews are considerably less favorable. Primary themes include difficult claims payouts and unpredictable rate increases. No matter which company you choose, do your research first.

Compare as many companies as possible to find the best service for the best price.

agent

Compare quotes from over 100 providers.

or
Location pin icon
No junk mail. No spam calls. Free quotes.
Ava Lynch photo
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.