Is insurance through Costco worth it?


Editorial team Published on

Costco insurance can be a great deal for safe drivers with good credit who want lower rates, but customer experiences are mixed.

Costco does not sell insurance directly. Instead, it partners with CONNECT by American Family Insurance to offer auto, home, and umbrella policies to members.

The Pros: Why It’s a Good Deal

  • Lower Rates: Premiums through CONNECT are often significantly cheaper than the national average for drivers with clean records.
  • Executive Member Perks: Executive members get extra benefits like lifetime car insurance renewability (not available in all states), windshield repair deductible waivers, and free roadside assistance.
  • Extra Protections: Home policies often include identity theft protection, credit card fraud coverage, and replacement cost value as a standard feature in most states.

The Cons: The Catch

  • Mixed Reviews: According to user discussions on platforms like Facebook, opinions are mixed; some policyholders love the initial savings, while others report steep rate hikes after the first year.
  • Strict Eligibility: High-risk drivers, people with major violations or DUIs, or those with poor credit scores usually will not get good rates or may be denied coverage entirely.
  • Rebuilding Estimates: Users on Reddit have a consensus that the provider sometimes underestimates home rebuilding costs, which can leave you underinsured.
  • Fewer Digital Tools: The mobile app and online management tools are basic compared to major nationwide competitors.