Costco Insurance Review
- With 2/5 stars in 2026, Costco is a below average insurance company.
- Read Costco reviews, complaints and prices before you buy.
Costco insurance: Ratings and reviews
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.
While Costco insurance may be cheaper, it comes with some caveats. Therefore, it's important to weigh your options carefully when deciding if it's the best deal for you.
-
A wide range of coverage options and benefits
-
Affordable premiums
-
An option for non-cancellation for Executive Membership holders
-
Good bundling options
-
Limited availability
-
Poor customer service ratings
-
Must be a Costco member to be eligible
Is Costco a good insurance company?
The majority of The Zebra's review incorporates how well Costco (CONNECT by American Family Insurance) scores in terms of customer service. In order to determine that we looked at the following third-party ratings. Where available, we use CONNECT's ratings. In the event they are not available, we rely on those of American Family as CONNECT is a subsidiary.
Trustpilot: 4.5*
- Costco (American Family) earned 4.5 marks in J.D. Power's most recent auto claims satisfaction study[1]
Better Business Bureau: 1.27
- The BBB rated Costco (American Family CONNECT) as 1.27 in overall auto customer satisfaction[2]
Complaint Index: Above average
- The National Association of Insurance Commissioners (NAIC) receives Above average customer complaints for Costco (American Family CONNECT)[3]
Financial Strength: A (Excellent)
- American Family CONNECT received an A (Excellent) financial strength rating from A.M. Best for its ability to pay out claims[4]
*ratings are based on American Family Insurance
The Zebra Customer Satisfaction Survey
In addition to third-party ratings, we also incorporated the results from our own consumer survey where we ranked which car insurance companies are the best based on feedback from real customers. However, Costco's carrier, CONNECT didn't receive enough direct responses, though its parent group, American Family Insurance scored 8.68/10 overall.*
*We did not figure this score into the overall review.
How much does Costco insurance cost?
Currently, the national average for a 6 month car insurance policy is $1,084, whereas Costco (AmFam Connect) is about $534, or roughly $346 less than a typical policy, so definitely one of the cheapest auto insurance options available.
The table below shows how Costco's auto insurance compares against other top insurers.Â
| 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 |
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Discounts offered
Auto insurance discounts are dependent on certain qualifications and state availability. Below are some of the ways you can lower your monthly rate for Costco.Â
- Multi-policy - if you bundle another policy with your auto insurance, such as a Costco home or condo policy, you can earn a multi-policy discount. Rates for such bundles tend to save 5 - 15% on average
- Multi-vehicle -Â Costco insurance rewards multi-vehicle customers with a discountÂ
- Continuous coverage - insurers see drivers with long insurance history as safe drivers. As such, Costco insurance will reward you for your consistent insurance coverage with its own discount
- Garaging discount - While limited, you may be able to snag a discount from Costco insurance if you park your vehicle in a garage overnight
In addition to what's listed above, Costco offers other driver-based discounts including good student and student away from home, as well as discounts for safety features and good driving. View all of the discounts that Costco (AmFam Connect) offers here.
Search, compare and buy all on one site. Start saving today!
What types of coverage does Costco offer?
Another key component of Costco's review is the types of coverage options they offer.
Costco (Connect by American Family) provides all state-specific and basic coverage options you might need, including liability, collision, comprehensive, and uninsured/underinsured motorist coverages. Below are some of Costco's custom coverage options and perks the company offers.
- Bundling options - In addition to homeowners and renters policies, Costco offers several other types of insurance that may be bundled together including boat, motorcycle, RV, condo, and even pet insurance. View the full list of Costco products here.
- Roadside assistance -Â Costco's roadside assistance coverage a number of services if you find yourself broken down.
- Windshield coverage - Coscto includes a Glass Repair Deductible Waiver for no additional cost.
- Accident Travel Expense Coverage - If you are in an accident while traveling, Costco's coverage provides assistance with travel-related fees that accumulate as a result.
Read more about Costco's coverages here.
Real-life customer experience
In an effort to provide even more insight into the Costco customer experience, we reached out to The Zebra's employees to see who has used Costco as their own personal carrier. Below is what one customer, Ryan, had to say.
Quick facts:
- Customer for 3-5 years
- Only has an auto policy
- Has never filed a claim
Costco insurance review: Summary
In short, Costco (Connect by American Family) is a good choice for eligible customers. The company's vast coverage choices, good rates and bundling options give customers a lot of choice in how they package their coverage. Overall, The Zebra believes that Costco is a great option for a large swath of insurance shoppers.
Methodology — how The Zebra reviews insurance companies
The team of insurance experts at The Zebra evaluates companies by focusing on customer experience first, with an emphasis on service quality, reliability, and ease of interaction. Unlike previous models, pricing is not scored but is instead presented separately as context for comparison.
Each category has been scored using a combination of our internal customer satisfaction survey results and published scores from reputable organizations such as AM Best and J.D. Power.
- Service Accessibility & Support Quality (25%): This category measures how easy it is to get help when needed, evaluating factors such as support channel availability (phone, chat, in-person, app), response times, agent knowledge, service hours, and language accessibility.
- Claims Experience (25%): This category assesses how smoothly the claims process works, considering ease of filing (online, app, or phone), transparency and communication, processing times, and fairness in dispute resolution.
- Digital Experience & Policy Management (25%): This category evaluates the convenience of managing your policy: this includes mobile app usability, website experience, account management, digital document access, self-service options, and platform integrations
- Trust & Reliability (25%): This category looks at a company’s overall reliability, measuring financial strength, market stability, regulatory history, communication transparency, and consistency in policy terms.
Price context: Pricing varies significantly based on individual circumstances and risk factors. Customers can evaluate cost-effectiveness based on their specific situation and the service quality scores provided.
Costco insurance: Frequently asked questions
See car insurance quotes in less than five minutes!
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 editorial 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.