Costco Car Insurance Discounts

Costco’s car insurance offers plenty of discounts, starting with a lower rate simply for having a Costco executive membership.
Written by Sarah Gray
Edited by Jessica Barrett
Reviewed by Brice Regling
Costco executive members can enjoy lower
car insurance
premiums when they sign up for
Costco CONNECT Insurance
, provided through a partnership with American Family Insurance. Costo CONNECT offers a wide range of discounts, including good driver discounts and vehicle safety feature discounts.

What discounts does Costco Insurance offer?

Costco Insurance offers three types of
car insurance discounts
for policyholders: safe driving discounts, vehicle discounts, and policy discounts.

Safe driver discounts

Car insurance companies prefer to insure drivers who demonstrate safe driving habits and avoid traffic violations, and Costco is no different. To help attract and keep responsible drivers, Costco offers the following
safe-driver discounts
  • Premier safety discount: If you’ve maintained a clean driving record for four consecutive years (or three years in Massachusetts and Florida), you could be eligible for this discount.
  • Defensive driver discount: Eligible Connect policyholders who take an approved defensive driving course can benefit from a safe discount.
  • Student away discount: If your auto policy includes a full-time student who attends school more than 100 miles from where their vehicle is garaged, you may be eligible for savings.

Costo vehicle discounts

Your vehicle’s overall safety plays an important role in
auto insurance calculations
. But some vehicle discounts are available no matter what type of car you drive.
  • Vehicle safety features discount: If your vehicle has features like anti-lock brakes, airbags, automatic seatbelts, and anti-theft devices, you may qualify for a discount.
  • Garaging discount: Depending on your location, if you keep your vehicle in a garage overnight, you may qualify for lower rates.

Costco policy discounts

Finally, Costco auto insurance offers several discounts based specifically on personal factors, like education level and the number of vehicles you own. These include:
  • Costco member discount: Costo members earn a discount on CONNECT insurance coverage simply for being a member. (Not available in Tennessee, and available only with executive membership in Massachusetts.)
  • Good student discount
    : Full-time high school and college students under 25 who maintain a high GPA could see lower rates.
  • Education discount: If you’ve completed a four-year degree, you could get a discount on your policy.
  • Multi-car discount: You could save on insurance costs with Costco by insuring more than one vehicle on the same policy.
  • Bundling discount: Costco CONNECT insurance offers homeowners and renters insurance. Bundle your home insurance or renters policy with your auto policy for the discount.
  • Tenure discount: Customers who continually renew their policy with Costco Insurance could earn a discount after a specified number of years
  • Glass repair deductible waiver: If your windshield repair rather than replacement is an option following damage, Costco CONNECT will waive your deductible.
  • Accident travel expense coverage: If you’re in an accident while on vacation or traveling, Costco policies offer reimbursement for some hotel and meal expenses.
  • Roadside assistance: When you add towing coverage to your policy, Executive members also get free roadside assistance for services like fuel delivery and jump starts.
  • Lifetime renewability: Your coverage will not be dropped after an at-fault accident. Exclusions apply.

Is a Costco membership required to qualify for Costco insurance?

Yes, you must be a Costco member to purchase a Costco CONNECT insurance policy. In most states, any membership level will qualify, but Massachusetts requires executive membership.

Does Costco Insurance offer good discounts?

Despite not offering discounts for low-mileage or telematics, Costco insurance discounts allow qualifying drivers to save around $596 in premiums during their first year. 1 But how does Costco stack up against the competition?
Our research indicates that American Family is one of the providers offering the most discounts on the insurance market today. Though American Family underwrites Costco CONNECT policies, CONNECT customers aren’t eligible for all 18 discounts they could get through American Family—they’re only eligible for 11.
app screenshot
To make sure you’re getting all the best discounts for your driver profile, regardless of provider, use the
The Jerry app will select discounts to search for in quotes automatically based on your profile, but you’ll have the chance to double-check and add others that may not be indicated by the information you provide.

Other ways to lower Costco Insurance rates

If you’re looking for more savings than you can get with insurance discounts, try adjusting your comprehensive and collision deductibles. Most policies automatically start with a $250 to $500 deductible, but raising that to $1,000 can result in significant savings. 
Remember: Be sure to maintain your deductible at an amount you can reasonably afford if you need to file a claim.
If you’re still looking for lower prices, see how much you might be able to save with a different provider. Use the Jerry app to
compare insurance quotes
from 55+ top providers to find a rate and policy that fit you and your driving profile.


What insurance carrier does Costco use?

Costco offers Costo Connect Insurance through a partnership with American Family Insurance.

Does Costco cover car insurance?

Costco does offer car insurance plans for members through a partnership with American Family Insurance.

How much is the Costco discount for Mercury Insurance?

Current Costco members can save 8% on their
Mercury Insurance
car insurance policy premiums.

Is Costco insurance OK?

Costco insurance offers legitimate coverage, but American Family CONNECT Property and Casualty Insurance, the company that underwrites the retailer’s policies, received a higher-than-average number of complaints according to the National Association of Insurance Commissioners (NAIC). CONNECT’s 2.40 complaint index means they get twice the number of complaints compared to other industry providers. 2
If customer satisfaction and seamless insurance claims processing are high on your list of priorities when shopping for auto insurance coverage, Costco CONNECT may not be the right provider for you.

What is Costco insurance?

Costco Insurance Agency, Inc. offers auto, home insurance policies, renters, specialty, and umbrella insurance policies through CONNECT, a wholly-owned subsidiary of American Family Insurance. Customers who purchase auto insurance through Costco get the same coverage options they’d get with other insurance providers—like bodily injury and property damage—along with perks like member-exclusive discounts and lifetime renewability.

Does Costco offer discounts for car insurance?

Yes, Costco offers discounts for car insurance. Motorists who purchase coverage with Costco can save money with a variety of safe driver, vehicle safety, and policy discounts.

What type of insurance does Costco offer?

Costco offers auto, home, business, pet, and life insurance.

What is the cost of Costco’s insurance?

Costco car insurance costs vary depending on a variety of highly individualized factors. With that in mind, Costco CONNECT premiums average about $1,068 per year.

Is Costco insurance better than other companies?

Overall, Costco CONNECT insurance earns average to above-average scores in insurance reviews. The Better Business Bureau (BBB) awards the provider an A+ rating, while
A.M. Best
gives the carrier an A rating for financial strength.
J.D. Power
rates CONNECT 4.1/5 overall, but the NAIC has recorded a higher-than-average number of complaints for the company.

Is Costco insurance leaving California?

Costco announced that it will no longer write new business in California and Florida in 2023.

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