Costco Car Insurance, 2024 Review

The Costco CONNECT program offers qualifying members discounted auto insurance through their partner provider American Family.
Written by Jacoba Bood
Edited by Pat Roache
Costco offers its members discounted
car insurance
premiums averaging about $1,068 per year with Costco CONNECT car insurance, powered by American Family.
Costco pros and cons:
Great potential for cost savings
No app to manage your policy
A smart pick for anybody who is concerned their current policy might be canceled
Car insurance ratings and reviews are below average
Offers up plenty of attractive
car insurance discounts
Limited business hours to contact a live agent

Average Costco car insurance costs

The average Costco insurance policy costs around $1,068 a year for two six-month policy renewals.
This very reasonable price point offers some pretty significant savings over the competition. However,
your exact quote is likely to vary
depending on a variety of factors:

Costco insurance is only available with a Costco membership

You have to hold a Costco membership to join the Costco CONNECT car insurance program. The level of coverage and additional benefits you receive depends on what level of Costco membership you subscribe to:
  • Gold Star ($60/year): With the Gold Star membership, your entire household will be eligible for their own CONNECT policies as long as one member holds a Gold Star card. This will give you access to the Costco stores and all discounted goods they offer as well.
  • Gold Star Executive ($120/year): The Gold Star Executive-level Costco membership grants access to the CONNECT Lifetime Renewability program, which protects your policy from cancellation. You can also benefit from select Costco services as well as 2% savings on any of your Costco or Costco travel purchases.
  • Business ($60/year): If you are eligible for a Costco Business membership, you can add additional people to your policy for just $60 more per person a year. You can also legally resell your membership and your Costco purchases.
  • Business Executive ($120/year): Shelling out for the top-tier Business Executive membership gives you access to any and all membership services, including CONNECT car insurance and the Lifetime Renewability program.
Keep in mind: You can cash in on Costco’s members-only cash-saving perks for more than just car insurance with your membership! 

How to get a Costco car insurance quote

You have two options to get a Costco Car Insurance quote:
  • Online: You can request an online quote through the
    CONNECT webpage
  • By phone: You can call 1-855-531-9254 to request a quote from an insurance agent. You’ll need to mention the reference number listed on the site to get quoted at the discounted Costco membership price.
Be prepared to provide the following information:

Costco auto insurance coverage offerings

Through the Costco CONNECT program, you can access all of the standard car insurance policy offerings, including the following:
  • Liability coverage:
    Auto liability policies
    are designed to protect you up to your policy’s limit against legal liability for property damage and medical expenses if you’re at fault in a car accident.
  • Medical payments coverage (MedPay):
    Medical payment coverage
    helps cover the costs of any medical or funeral expenses for you, your family members, or your passengers. Investing in medical payment coverage is always a good idea because it will kick in regardless of who is found at fault.
  • Personal injury protection (PIP) coverage: Much like medical payments coverage,
    personal injury protection
    plans will cover the cost of medical expenses associated with an accident. PIP plans typically offer more extensive coverage than medical payment policies and may also apply to certain other accident-related expenses like lost wages as well.
  • Collision coverage:
    Collision insurance
    covers the cost of vehicle repairs or replacement for your vehicle if you are involved in a collision—after you pay your
    insurance deductible
  • Comprehensive coverage: A
    comprehensive insurance
    coverage plan is designed to protect your vehicle against non-collision damages, like hitting an animal, damage by weather or
    acts of God
    , vehicle theft, and vandalism
  • Uninsured/underinsured motorist coverage:
    Uninsured/underinsured motorist coverage
    will help pay for your medical bills if you are injured in an accident with an at-fault driver who doesn’t have sufficient liability coverage.
Expert tip: Consider combining your
state’s minimum liability requirements
with collision and comprehensive coverage in a
full-coverage insurance package
to get the best protection for your vehicle. 

Costco policy upgrades and add-ons

In some cases, you may automatically have access to additional policy offerings depending on your Costco membership level. Otherwise, you might have the option to purchase the following additional coverage options:
  • Roadside assistance coverage:
    Roadside assistance
    is automatically included for policyholders who are also Costco executive members. Your costs will be covered up to $75/incident for services like key unlocking, flat tire replacement, battery boosts, and towing.
  • Lifetime renewability: Costco CONNECT’s Lifetime Policy renewal for executive-tier members guarantees that your policy won’t be canceled after an accident or moving violation—excluding serious infractions like
    . (Don’t be surprised if your
    insurance goes up
    , though.)
  • Gap coverage:
    Gap insurance
    is a smart policy add-on to purchase if you drive a vehicle that you are currently financing. This covers the effects of depreciation and interest into account and will help cover the difference between what you still owe and the actual value of the vehicle if it is
    deemed a total loss
  • Rental car reimbursement coverage: Costco CONNECT's
    rental reimbursement coverage
    add-on will pay out $30 a day and up to $900 per incident to help cover the costs of rental car fees while your primary vehicle is in for repairs.

Costco’s auto insurance discounts

All Costco members will save between 5-10% on the standard American Family insurance rates offered to non-Costco members. In addition, you will be eligible to take advantage of standard American Family car insurance discount offerings as well, such as:
  • Safe driving discounts: You could receive a
    good driver discount
    for going a certain number of years without an accident or completing a
    defensive driver training course
  • Bundling discounts: Costco members can choose from a full range of insurance products, including
    home insurance
    and life insurance.
    Bundle other products with your auto insurance policy
    to save on all your premiums. 
  • Premier safety discounts: American Family offers car insurance subscribers access to a range of discounts for having certain
    anti-theft devices
    and safety features in their cars.
  • Longevity discount: If you maintain three years or more of
    continuous insurance
    coverage with Costco CONNECT, you could be eligible to save on your policy.
  • Student discount: Members with four or more years of postsecondary education could be eligible for a reduced rate. Full-time students under the age of 25 who maintain at least a B average or higher are also eligible for a good student discount. 
  • Student away at school discount: You could save on your policy if you have a
    student family member living at school
    more than 100 miles away from home.

Costco auto insurance reviews: high customer complaints

Disclaimer: J.D. Power Associates U.S. Auto Insurance Satisfaction Study findings aren’t available for the CONNECT program since Costco insurance packages are offered through a larger parent provider, American Family.
According to data collected by the
National Association of Insurance Commissioners (NAIC)
, Costco CONNECT customers are 2.49 times more likely to have complaints regarding their Costco insurance package than an average car insurance provider.
Costco CONNECT’s high complaint ratio could have a lot to do with the following:
  • Third-party car insurance provider: Unfortunately, it is not uncommon for providers selling third-party policies through companies like Costco to prioritize their first-party clientele over indirect subscribers.
  • Restricted agent access: Costco car insurance does not offer 24/7 live agent access. Instead, you can only speak to a live agent between 8 a.m. and 11 p.m. EST, Monday to Friday, and between 9:30 a.m. and 8:00 p.m. EST on Saturdays.
  • No mobile app: CONNECT does not offer a dedicated app that will allow you easy policy access on the go, but certain policy adjustments can be processed online through the website portal.
Between the lines: American Family has an “Excellent” financial strength rating from AM Best. While it may be hard to get a hold of an agent at first, you can trust that your Costco CONNECT policy has the backing to cover your damages if you
make an insurance claim


There is no doubt that Costco offers some of the most
affordable car insurance
packages around, but price isn’t everything.
is another major provider with a reputation for offering very reasonable insurance rates, so let’s compare the two and see how they stack up.
  • Cost comparison:  GEICO is widely recognized as having some of the cheapest auto insurance rates across the board. However, the average Costco member saves about 40% on a six-month Costco CONNECT car insurance policy than they would if they chose GEICO.
  • Customer satisfaction: GEICO also maintains a relatively strong reputation for customer service, having earned their popularity for providing both reasonable prices and a wide range of quality service offerings.
  • Ease of use: Costco CONNECT car insurance suffers from severely stunted service offerings and high complaint ratio. GEICO, on the other hand, offers all the standard customer service features that Costco CONNECT doesn’t—including mobile app access and 24/7 agent access.
The bottom line: If cost alone is your top priority, Costco CONNECT could be a good choice. If you want to make sure you get reliable service when you need it, GEICO is a much safer bet.
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