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Your Guide To Costco Car Insurance

Costco car insurance isn’t a standalone policy from Costco; it’s a members-only program underwritten by CONNECT, powered by American Family Insurance.

That partnership can unlock member discounts, bundling options, and helpful perks—but it isn’t automatically the cheapest or best fit for every driver.

This guide explains how Costco car insurance works, what coverage and discounts you can expect, how it compares with big-name insurers like GEICO, Progressive, State Farm, and USAA, and smart steps to get the best quote.

What is Costco car insurance (CONNECT by American Family)?

Costco partners with CONNECT by American Family Insurance to offer auto and home policies to members. You’ll buy and service the policy directly through CONNECT, but Costco membership (Gold Star or Executive) is required to access the program.

Claims are handled by CONNECT, backed by the financial strength and national footprint of American Family Insurance. As with any insurer you consider, verify current financial ratings through an independent source like AM Best and check recent satisfaction data in your region via J.D. Power.

Availability and specific features can vary by state. Always review the policy documents and Costco’s program page for your location before you switch.

Coverage and features you can expect

Standard auto insurance coverages

  • Liability (bodily injury and property damage) to cover injuries or damage you cause to others.
  • Collision to repair or replace your vehicle after an at-fault crash.
  • Comprehensive for non-collision losses like theft, vandalism, hail, or falling objects.
  • Uninsured/Underinsured motorist to protect you if the other driver lacks adequate coverage.
  • Medical payments/Personal Injury Protection (varies by state) to help with medical bills regardless of fault.

Common add-ons and perks

  • Roadside assistance for towing, jump-starts, or lockouts.
  • Rental car reimbursement while your car is in covered repairs.
  • Gap coverage to bridge the difference between a car’s value and your loan/lease balance after a total loss (availability varies).
  • Accident forgiveness or diminishing deductible in select states.
  • OEM parts or new car replacement options in some markets (ask specifically if these matter to you).

Because options can differ by state and driver profile, confirm the specifics with a CONNECT representative and read the endorsements in your quote.

Discounts Costco members may qualify for

  • Costco member discount: Access is limited to members; some receive a pricing break compared with non-member channels.
  • Executive Member benefits: Executive membership may unlock additional savings or benefits in certain states. Verify what’s currently offered on the Costco x CONNECT page.
  • Multi-policy/multi-vehicle: Bundle auto with home, renters, or umbrella for a better rate.
  • Safe driver/accident-free: Clean records often earn meaningful discounts.
  • Good student/student away at school: For households with teen drivers.
  • Telematics or usage-based programs: If available in your state, driving data can lower premiums for safe habits.

Tip: Membership fees can be offset by insurance savings, but that depends on your quotes. If you’re not already a member, compare the net savings against the annual cost of joining Costco.

Costco vs. major insurers: How it compares

Auto insurance pricing is highly personalized. Your ZIP code, vehicle, driving history, credit-based insurance score (where allowed), and chosen limits will influence the winner. The smart strategy is to quote multiple carriers the same day with identical limits and deductibles.

  • Costco (CONNECT by American Family): Competitive for many safe drivers, especially when bundling home/renters. Member-only pricing and occasional Executive perks can tip the scales. Service and claims are handled by CONNECT, not at Costco warehouses.
  • GEICO: Often sharp for clean records and simple coverage needs; strong digital tools. Bundling options and local agent support are more limited than some competitors.
  • Progressive: Frequently competitive for drivers with tickets/accidents and for specialty vehicles. Snapshot telematics can lower costs for low-risk driving; claims experience can vary by market.
  • State Farm: Massive agent network and solid telematics programs (Drive Safe & Save, Steer Clear). Quotes are often strong for families and homeowners who prefer in-person service.
  • USAA: Consistently competitive and highly rated for military families, but eligibility is restricted to service members and their families.

Bottom line on pricing: In some households, Costco/CONNECT will beat the market; in others, GEICO, Progressive, or State Farm will. Avoid assumptions—run the numbers with apples-to-apples limits.

Who Costco car insurance is best for

  • Existing Costco members who want to leverage membership for potential savings.
  • Bundlers planning to combine auto with home or renters for a stronger discount.
  • Safe drivers with clean records who can qualify for preferred rates.
  • Digital-first households comfortable with online or phone-based service through CONNECT.

Potential drawbacks to weigh

  • Membership required: If you’re not a Costco member, factor the membership cost into your total savings calculation.
  • State availability and feature variance: Not all discounts or add-ons are offered everywhere.
  • Service is through CONNECT, not Costco: Claims and policy changes happen via CONNECT’s channels; local warehouse staff can’t assist with policies.
  • Agent access: If you prefer a dedicated local agent relationship, compare with carriers known for in-person service.

How to get a strong quote (and compare fairly)

  1. Decide on coverage limits first: Write down your target liability limits (e.g., 100/300/100), UM/UIM, comp/collision deductibles, rental and roadside. Quote these exact limits with each insurer for a clean comparison.
  2. Quote Costco/CONNECT via the dedicated page for members: connectbyamfam.com/costco.
  3. Quote 2–3 competitors the same day: try GEICO, Progressive, and State Farm. Military families should include USAA.
  4. Ask about all applicable discounts: Membership perks, multi-policy, telematics, good student, homeowner, and continuous insurance history can all move the price.
  5. Review financial strength and satisfaction: Check AM Best for ratings and your region’s J.D. Power scores for service insight.
  6. Compare total value, not just premium: Favor policies that meet your coverage needs with reliable claims support, even if they aren’t the rock-bottom price.

FAQs

Is Costco car insurance cheaper?

It can be—especially for members who bundle or qualify for preferred pricing—but not always. Quotes vary widely by driver and location. The best approach is to compare a Costco/CONNECT quote with at least two other carriers using identical limits.

Who handles claims and customer service?

CONNECT by American Family handles your policy and claims. Costco provides access to the program but does not service policies or process claims.

Do I need to be a Costco member?

Yes. You must have an active Costco membership to purchase through the CONNECT program and access any member pricing or perks.

Is Costco car insurance available in every state?

Availability and features vary by state. Check your ZIP code and eligibility on the CONNECT for Costco site.

Bottom line

Costco car insurance, provided by CONNECT, can be a smart, money-saving choice for many members—particularly safe drivers and households that bundle. To know for sure, get side-by-side quotes the same day with identical coverage limits, verify financial strength and satisfaction scores, and choose the policy that balances price, protection, and claims support for your situation.