What is Costco Car Insurance?

How does Costco stack up against other auto insurance 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 Ameriprise Insurance. Costco advertises savings of up to $575, and Ameriprise 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.

 

Compare rates from top insurance companies!

 

What we'll cover:

  1. How much is Costco car insurance?
  2. What coverage do they offer?
  3. Costco Membership fees
  4. Ameriprise Insurance
  5. Additional resources

 

How much does Costco car insurance cost?

With all metrics and rating factors constant, Ameriprise 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 (Ameriprise)$534

 

Ameriprise 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.

 

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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:

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:

  • Reside in Maryland or Michigan
  • Have “major violations”
  • Fail to pay your premium
  • Fail to provide requested documentation
  • Move to a state Ameriprise does not sell in
  • Purchase an uninsurable vehicle

 

Costco membership 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

$60

Gold Star Executive

$120

Business

$60

Business Executive

$120

Costco membership level breakdowns:
  • Gold Star One provides access to Costco stores and one card per household.
  • Gold Star Executive offers 2% off eligible Costco and Costco travel purchases, plus extra benefits on select Costco services. Members are eligible for the lifetime renewability option with Ameriprise.
  • Business membership allows you to add additional people for $60 annually. Membership and all purchases are available for resale.
  • Business Executive includes all possible membership services: 2% off certain items, additional members, and resale value on goods.

 

Is Ameriprise Insurance a good company?

While experiences may vary, Ameriprise does not have great customer service or claims satisfaction reviews. The company's National Association of Insurance Commissioners complaint index is above-average. More people submit claims to the NAIC about Ameriprise than the average US insurance company.

Ameriprise has a financial strength score of Superior, meaning they have the ability to pay out claims.

Do your own research by reading reviews and comparing insurance quotes. If you’re ready to get rates, enter your ZIP code below to get started.

 

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Additional resources

If you’re looking for additional information on car insurance, see below.

Methodology

These rates were determined using five zip codes from representative zip codes in the US. 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 methodology here.