Costco Car Insurance Review 2023

Costco members qualify for discounted home and auto insurance with Costco's partner provider American Family and their CONNECT program. Read here to learn more.
Written by Jacoba Bood
Reviewed by Kathleen Flear
Updated on Jan 18, 2023
Costco doesn’t technically sell their own car insurance, but they offer their members discounted rates through their partner
American Family
. Marketed as Costco CONNECT insurance, Costco car insurance gives your ample opportunity to score affordable insurance rates.
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car insurance
where you buy your mega-sized milk cartons, the insurance comparison shopping app
has compiled everything you need to know about your Costco car insurance quote.
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How much does Costco car insurance cost?

On average, a Costco Insurance Policy costs somewhere around $1,068 a year for two six-month policy renewals.
This very reasonable price point offers some pretty significant savings over the competition.
Policy prices can also differ according to a wide variety of factors, including the type of vehicle you drive, your location and
parking spot
, your
driving record
, your age, and the type of tailored options you add to your policy.
Likewise, these averages will vary according to the state you live in,
your credit score
, and your age demographic.

Costco pros and cons

  • Great potential for cost-savings
  • A smart pick for anybody who is concerned their current policy might be canceled
  • Offers up plenty of attractive
    car insurance discounts
  • No app to manage your policy
  • Car insurance reviews are below average
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How does Costco insurance work?

If you’re familiar with Costco, you know memberships are the name of the game. And its car insurance offerings are no exception.
The level of coverage and benefits you receive depends on what level of Costco membership you subscribe to.
For instance, if you have a Gold Star membership, you will have access to limited features and services compared to a full Business Executive membership, which gives you access to all the extras.
One thing that is pretty unique about the Costco CONNECT car insurance program is that it offers guaranteed Lifetime Policy renewal to Executive-Tier members. With a few exceptions, your policy won’t be canceled if you have an accident, but your
insurance will go up

Do I have to be a Costco member?

The short answer is yes. You have to hold a Costco membership to join the Costco CONNECT car insurance program.
The good news is that once you are a Costco member, you can cash in on the entire members-only cash-saving model that Costco offers up.
Costco CONNECT is available to the following Costco membership tiers:

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)

If you choose to purchase the upgraded Gold Star Executive-level Costco membership, you gain access to the CONNECT Lifetime Renewability program, which is a great thing to have if you fear your policy might be canceled.
There are also certain select Costco services you can benefit from 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.

Costco car insurance coverage

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 should you be found at fault in a car accident.

Medical payments coverage

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, no matter who is at fault. However, 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
is designed to provide an additional level of protection over basic liability insurance, helping to cover the costs of repairs or replacement for your vehicle if you are involved in a collision.

Comprehensive coverage

comprehensive insurance
coverage plan is designed to protect you should something happen to your vehicle that isn’t covered by a collision policy, like hitting an animal while driving, damage to your vehicle by weather or
acts of God
, or your vehicle being stolen or vandalized.

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.

Other coverage options

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 policy offerings.

Roadside assistance coverage

Should you require
roadside assistance
, your costs will be covered up to $75/incident for services like key unlocking, flat tire replacement, battery boosts, and towing.
Roadside assistance is automatically included in your Costco CONNECT car insurance package if you purchase an annual Costco Executive-level membership.

Lifetime renewability

Another Executive member exclusive, Lifetime renewability guarantees that your policy won’t be canceled regardless of the number of accidents or moving violations you have—excluding serious infractions like

Gap insurance coverage

Gap insurance
is a smart policy add-on to purchase if you drive a vehicle that you are currently financing.
Gap insurance takes 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 help you cover the cost of renting a vehicle if your car ends up in the shop after a claimable accident.
This option 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.
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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 all of the standard American Family car insurance discount offerings as well.
Here are some notable discounts:

Safe driving discounts

You could receive a
safe driver discount
for going a certain number of years without an accident or completing a driver safety training course.

Bundling discounts

One of the great perks of the Costco CONNECT program is that it offers up a full range of insurance protection under one convenient roof through
This also gives Costco members an opportunity to save when they bundle up multiple Costco insurance policies. For example, you could choose to bundle your CONNECT car insurance with
home insurance
and life insurance opportunities also available exclusively to Costco members and save.

Safety features 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

If you or a member of your family has four or more years of postsecondary education under your belt, you could be eligible for a reduced rate on your Costco car insurance policy through American Family.
The same goes for full-time students who are under the age of 25, but you will have to maintain at least a B average higher to be eligible. If you are a family with a student family member living more than 100 miles away from home to attend school, you could also save on your policy.

Costco car insurance reviews

Since Costco insurance packages are offered through a larger parent provider, American Family, the standard J.D. Power Associates U.S. Auto Insurance Satisfaction Study findings aren’t available for the CONNECT program.
However, according to data collected by the
National Association of Insurance Commissioners
, Costco Auto Insurance scores well above average considering the high volume of customer complaints it receives.
Basically, customers that are insured through Costco’s CONNECT insurance are 4.73 times more likely to have complaints regarding their Costco insurance package than an average car insurance provider.
The fact that CONNECT’s complaint ratio is so high might have a lot to do with the Costco car insurance packages being offered through a third-party provider.
Unfortunately, it is not uncommon for these types of providers to prioritize their first-party clientele over those who aren’t direct subscribers.
It is also important to note that Costco car insurance does not offer the standard 24/7 live agent access that is included with most car insurance packages. You will only be able to speak to a live agent between the hours of 8 a.m. and 11 p.m. EST, Monday to Friday.
On Saturday, the hours are even more limited and the call center is closed completely on Sunday, so you might find yourself waiting to make a claim.
Certain policy adjustments can be processed online through the website portal, but CONNECT does not offer a dedicated app that will allow you easy policy access on the go.
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Costco vs. other insurance companies

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.

Costo CONNECT vs. Geico

Geico is widely recognized as having some of the
cheapest auto insurance
rates across the board, but the average Costco car insurance package will probably still be more affordable than anything Geico can offer up.
The average Costco member will save a whopping average of about 40% on a six-month Costco CONNECT car insurance policy than they would if they chose Geico.
That said, though, 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.
Costco CONNECT car insurance is a far less popular choice, and this might have to do with their sometimes severely stunted service offerings and high complaint ratio. When you choose Geico, you can also enjoy all the standard customer service features that Costco CONNECT doesn’t offer, like mobile app access and 24/7 agent access.
In summary, if cost alone is your top priority, Costco CONNECT could be a good choice, but if you want to make sure you get reliable service when you need it, Geico is much a safer bet.

How to get a Costco car insurance quote

You have two options to get a Costco Car Insurance quote.
The simplest way to go about it is to request an online quote through the CONNECT car insurance webpage. You can also call to speak to an agent.
Just remember to use the Costco CONNECT reference number listed on the site so that you get quoted at the discounted Costco membership price.
Be prepared to provide your basic information, information on your vehicle, an estimate of how many miles you drive in a day, and information on the other drivers in your household. It is also a good idea to have the information on hand if applicable:
  • Your license plate number
  • Your driver’s license number
  • Your vehicle identification number
  • Your current mileage
  • Your vehicle purchase date
  • Your current insurance information
If you aren’t feeling up to all this labor just to compare your car insurance quotes,
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The Takeaway: is Costco right for me?

If big savings are all you are looking for, Costco insurance is hard to beat. It is also a great choice for anybody nervous that their car insurance policy could be canceled.
However, Costco car insurance generates a lot more complaints than the standard provider. This means that you might not be able to count on satisfactory results from your claims process.
If there is one big takeaway here, it is that there are always a lot of different things to keep in mind when you compare car insurance quotes.
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