Costco Car Insurance: A Complete Auto Insurance Review
Updated: Aug 13
Are you thinking of purchasing Costco Car Insurance? You are in the right place. This article will serve as a complete guide to learn about coverage options and cover the following FAQs:
What is Costco Car Insurance?
How much can you expect to pay for a Costco auto insurance policy?
What benefits are available as a Costco member?
What coverage options are available from a Costco insurance policy?
How does Costco Car Insurance Work?
At face value, the name Costco Car Insurance is not a good description of the product they are selling. Costco Wholesale is not an insurance company or carrier but acts as an agent selling car insurance policies through their partnership with Connect, a subsidiary of American Family Insurance, formerly Ameriprise Auto Insurance.
Who can get Costco Car Insurance and where do you purchase it?
As a member of Costco, you have access to an exclusive member discount on auto insurance through their partner company, Connect. To purchase a policy, you can visit the Costco Insurance Agency website. Once there, you will be provided with a tool to get you started with an auto insurance policy quote. You will then select your auto policy. Depending on your state, Connect will offer the policyholder six-month or 12-month auto insurance policies. There are a couple of options you can choose from to make your payments. You have the choice of purchasing your policy up-front in a lump sum, or you can pay over a series of five monthly installments (plus a convenience fee). Your payment can be made via mail or a payment portal.
Note: Residents of Georgia, Texas, Michigan, and Massachusetts should contact Customer Service to discuss payment options further.
What does Costco Car Insurance cover?
Costco’s basic auto insurance policies offer liability coverage that insures you up to your state’s minimum requirements against bodily damage and property damage. If you want anything above the minimum requirements for your auto insurance policy from Costco, you can customize your policy with additional coverage that best fits your needs. Below you will find a list of the types of coverages available and examples of incidents that are insured:
Damage from vandalism
Shattered window or windshield
Damage from an animal striking your vehicle
Damage caused by a fire or explosion
Damage caused by natural disasters
Damage caused by collision with another vehicle
Damage caused by collision with objects in the road
Roadside assistance and towing
Flat tire repair
Delivery of fuel (does not include the price of fuel)
Rental car insurance
Daily car rental charges up to a specified dollar amount of your choice
Bodily injury insurance
Cost of lawsuit or settlement (if found liable for a car accident)
Property damage insurance
Lose control of vehicle and damage property
Hit a parked vehicle
Uninsured motorist coverage
Assists with expenses in the event you’re involved in an accident where you’re not at fault and the other party is not insured
Medical expense insurance
PIP (Personal injury protection) insurance
Loss of wages
New car replacement
Assists with replacing your new vehicle with the same one if it totaled.
Assists with reimbursement of the remainder of your car loan in the event your car is totaled
If you are one of Costco’s top tier members with a Costco Executive Membership, you have access to even more perks:
Glass repair reimbursement
Home lockout assistance
Identity theft protection
Stolen credit card use or check fraud protection
Food spoilage protection
Lock replacement expense protection
Discounted insurance products
In the event that you have to make an auto insurance claim, follow Costco’s step-by-step guide to assist with the claims process. You may also reach the Claims Department at:
24 hours a day, 7 days a week
CONNECT, by American Family Insurance
PO Box 19018
Green Bay, WI 54307-9018
CONNECT, by American Family Insurance
3500 Packerland Drive
De Pere, WI 54115-9070
** Include your policy number on all correspondence.
How much does Costco Car Insurance Cost?
Costco claims its members saved an average of $597.10 the first year they switched from other insurance providers, like Geico, to Costco Car Insurance, though your savings may vary. Your out-of-pocket payment for Costco Car Insurance will depend on your individual needs and what coverages you choose for your policy. Factors such as, driving history, age, residence, financial strength/credit score, and make/model of your vehicle, may also impact the cost of your policy. You can visit Costco Insurance Agency to request an insurance quote and begin building your policy. Keep in mind, you must take into account the $60 - $120 fee of your annual Costco membership when calculating the cost of your Costco Car Insurance policy.
To get an idea of what a Costco Car Insurance policy might cost after applying member savings, we ran a quote for a sample driver. Our driver was a single, 30-year-old male in Brooklyn, New York who drives a 2014 Honda Civic. After applying the Costco discount, Connect quoted him $733 for a six-month premium. Below are the details of the policy:
In addition to your Costco Car Insurance policy, you will qualify for the Costco Auto Program. This program offers discounts on auto servicing and car parts through local service centers partnered with Costco. You may also receive car-buying deals from Costco-approved dealerships. Just like the Costco Car Insurance, Costco serves as the middleman in the Costco Auto Program, and only connects you with partnered service centers and dealerships.
Important: Due to COVID-19, you may be eligible for premium relief assistance and should expect to receive a premium refund.
Does Costco Car Insurance offer Discounts?
Just by being a Costco member, you will receive a savings of 5% to 10% off of Connect’s auto insurance rates. To get additional savings and receive a reduced premium to your auto insurance policy, make sure to take advantage of applicable discounts:
Good driver discount (California only)
Be a safe driver and keep a clean driving record
Premier safety discount
All insured drivers on your policy have zero traffic violations, accidents or claims in the last four years
Safe driving/ Defensive Driver discount
Take a refresher defensive driving course and receive a certificate of completion
Vehicle safety features
Your vehicle has anti-lock brakes, airbags, automatic seatbelts, or anti-theft devices
You park your vehicle in a garage overnight
Ask your client service representative if this discount is available in your area
Good student discount
Rewards full-time students who can prove they meet certain criteria
Speak to your client service representative on how to apply this discount
Student away discount
Your student is more than 100 miles away from your residence and will be covered if they are home visiting
Does NOT apply if the student has a vehicle at school
You are a student/have a student in your family who has completed four years of post-high-school education
You insure more than one vehicle on your auto insurance policy
Loyal customers receive an incentive to stay insured with Costco Car Insurance
You have more than one insurance policy
Can Costco Car Insurance be canceled or non-renewed?
To make any adjustments to your Costco Car Insurance policy, such as cancellations or renewals, you must contact Connect’s customer service line and provide them with your personal information (name, phone number, etc.) and policy number. Costco Executive Members are given the benefit of lifetime policy renewability. Qualifying for this benefit means that Connect will never cancel your policy due to too many accidents. However, this is not to say that your policy rates won’t increase after an accident.
Note: There are some serious infractions where your policy may still be canceled, such as a DUI.
Have You Considered Refinancing Your Auto Loan?
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More than likely, if you received your vehicle loan from a dealership, you may be drastically overpaying. WithClutch can help people save money and time by allowing them to refinance from the comfort of their home in less than 20 seconds. If this is something that appeals to you follow these simple steps to get your refinance journey on its way!