State Farm vs Costco Car Insurance: Which is Better for You?
- The Zebra's pick: Costco
- Costco has similar ratings as State Farm, but offers cheaper rates on average.
- Your experience with State Farm and Costco will vary based on individual rating factors.
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Ava joined The Zebra in 2016 as a licensed insurance agent and writer. She now serves as director of insurance content, leading coverage strategy and…
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- Licensed Insurance Agent — Property and Casualty
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State Farm vs. Costco: What's the difference?
The Zebra's choice: Costco
Costco is much cheaper and received better ratings than State Farm.
State Farm:
- Cost: $98/month for full coverage
- Customer service: 3.6
- Claims handling: 2
- Digital experience: 4.8
- Trust: 4
- Overall rating: 3.6
State Farm comes out on top when it comes to customer service, digital experience and trust scores
Costco:
- Cost: $66/month for full coverage
- Customer service: 3.8
- Claims handling: 3
- Digital experience: 4.5
- Trust: 3.5
- Overall rating: 3.8
Costco takes the win for cheaper rates, customer service and claims handling
Coverage comparison: Costco vs. State Farm
At a basic coverage level, State Farm and Costco provide the same protections. Liability, collision, comprehensive, and any state-specific requirements are consistent from insurer to insurer. However, some of the under-the-hood details differ. Let’s explore.
Lifetime renewability
This feature is only available to Costco Executive Cardholders. It gives these members the added cushion of automatic policy renewal, even in the case of multiple accidents. Many companies will non-renew or cancel a driver's policy after three accidents in a certain period of time. While State Farm does not specifically state its policy cancellation threshold, the insurer may drop coverage after several violations, depending on their severity.
Restrictions to Costco's lifetime renewability perk:
If you...
Telematics
Usage-based insurance is growing in popularity. To administer these policies, insurance companies use telematics devices to assess clients' driving habits, pricing policies accordingly. The safer your driving, the less you will pay for car insurance.
Costco — via CONNECT, powered by American Family Insurance — does not offer a telematics program. However, State Farm does. State Farm's Drive Safe & Save Program uses OnStar or a mobile app to measure speed, time of day, braking, and acceleration to price your premium. While rates will vary based on your individual results, State Farm advertises savings of up to 50% through Drive Safe & Save.
Learn more about usage-based insurance and telematics.
State Farm vs Costco car insurance: where is coverage available?
While Costco has stores across the U.S., CONNECT operates only in 34 states. Below are the states in which CONNECT does not sell coverage.
Alaska, California, Connecticut, Florida, Hawaii, Idaho, Louisiana, Maine, New Hampshire, North Carolina, North Dakota, Rhode Island, Tennessee, Washington, and Wyoming.
State Farm offers car insurance in all U.S. states and has no membership requirements.
State Farm vs. Costco car insurance: which has the best customer service?
If you need to contact an insurance company, it’s usually because something bad happened. Decent customer service is imperative. State Farm has more favorable customer service, JD Power, and Financial Strength ratings than Costco (CONNECT). CONNECT, powered by American Family Insurance's unofficial reviews highlight some concerning trends. General themes show difficult claims payouts and unexpected rate increases.
Do your research. Start with the quoting process to see which companies will give you the cheapest rate and then begin with their customer service reviews. Enter your ZIP code below to get started.
Compare insurance rates quickly and easily.
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.
