Is it true that Costco has car insurance?
Yes, Costco offers discounted car insurance to its members through a partnership with CONNECT, powered by American Family Insurance.
How It Works
- Underwriting: Costco does not sell or underwrite the insurance directly. Instead, policies are issued, managed, and serviced by American Family Insurance via its subsidiary CONNECT.
- Membership Required: You must be an active Costco member to purchase a policy, though anyone can request a price quote online.
- Discounts & Perks: Members get lower group rates, and Executive Members often receive extra perks like 24/7 roadside assistance and lifetime renewability in participating states.
Availability Limitations
- State Restrictions: Car insurance through this program is not available in every state (such as Alaska, Maine, North Dakota, Rhode Island, West Virginia, and Wyoming).
- New Policies: The insurer has stopped writing new auto policies in certain states, including California and Florida.
Is Costco car insurance actually cheaper?
Yes, Costco car insurance is often cheaper on average, but it depends heavily on your location and driving record.
How It Works
- Costco does not sell insurance directly.
- They partner with CONNECT (underwritten by American Family Insurance) to offer special member discounts.
- You can learn more or request an estimate on the Costco Auto and Home Insurance Services page.
Why It Can Be Cheaper
- Member Discounts: Costco members get lower base rates compared to the general public.
- Good Driver Savings: CONNECT targets drivers with clean records, offering extra perks for no recent accidents or tickets.
- Perks: Policies often include extra value like a glass repair deductible waiver for windshields. Executive members may also get roadside assistance and lifetime renewability.
The Catch
- Not Universally the Lowest: Opinions on Reddit are mixed; some drivers find better deals with other major carriers like State Farm or GEICO.
- Limited Availability: CONNECT is not available in every state, and they have stopped taking new customers in some areas like California.
- Best for Clean Records: If you have a poor driving history or need only bare-minimum state coverage, prices may be higher than average.
How much is car insurance with a Costco membership?
Costco car insurance costs an average of $183 per month for full coverage and $79 per month for minimum liability coverage. Policies are not underwritten directly by Costco; instead, exclusive member discounts are offered through CONNECT, a subsidiary of American Family Insurance.
While actual premiums vary significantly based on your driving history, vehicle type, and location, Costco's full-coverage rates generally trend about 10% below the national average.
Average Monthly Cost Comparison
Your premium will depend heavily on your driving record and the level of coverage you choose:
| Coverage / Risk Level | Costco Average Monthly Premium | National Average Monthly Premium |
|---|---|---|
| Minimum Coverage | $79 | $61 |
| Full Coverage | $183 | $203 |
| Clean Driving Record | $67 | — |
| After One Speeding Ticket | $282 | $247 |
| After One Accident | $288 | $281 |
| After a DUI | $320 | $301 |
Costco Membership Costs & Perks
To qualify for these rates, you must factoring in your annual Costco membership fee:
- Gold Star Membership: $65 per year. Includes standard exclusive member discounts.
- Executive Membership: $130 per year. Unlocks additional premium benefits, including lifetime policy renewability (meaning the insurer cannot drop you after a string of claims) and free 24-hour roadside assistance.
Availability Constraints
Before requesting a quote, note that CONNECT through Costco has restricted availability:
- It is unavailable in Alaska, Maine, North Dakota, Rhode Island, West Virginia, and Wyoming.
- It is not writing any new policies in California or Florida.
If you live in an eligible state, you can check your exact pricing directly via the Costco American Family Insurance Portal.
What are people saying about Costco car insurance?
People say Costco car insurance offers very competitive rates and notable savings through its partner U.S. News, but customer experiences are mixed with frequent complaints about sudden price hikes and claim difficulties.
What People Like (The Pros)
- Lower Prices: Many members report saving significant money compared to their previous insurance providers.
- Extra Perks: Executive members get helpful perks like free roadside assistance and lifetime renewability.
- Built-in Extras: Policies include a glass repair deductible waiver for windshield fixes at no extra cost.
What People Dislike (The Cons)
- Rate Increases: On social media and consumer forums, many users report sharp price increases after their first year of coverage.
- Higher Complaints: According to NerdWallet, policyholders file more complaints with state regulators than expected for an insurer of this size.
- App Limitations: There is no dedicated Costco insurance app, meaning you have to manage policies through the main American Family site or phone line.
- Missing Options: The policy lacks extras like rideshare coverage or gap insurance.
Availability Notes
- The insurance is underwritten by American Family Insurance (formerly CONNECT).
- You must have a Costco membership to buy a policy.
- It is not available in Alaska, Maine, North Dakota, Rhode Island, West Virginia, or Wyoming, and no new policies are being written in California or Florida.
How to get Costco auto insurance?
You can get a quote and purchase auto insurance online through the Costco Insurance Agency or by calling American Family Insurance at 1-855-531-9253.
How to Get Coverage
- Check eligibility: You can request a quote without a membership, but you must have an active Costco membership to purchase and finalize a policy. Provide your membership number during checkout.
- Request a quote: Visit the online portal or call the dedicated phone line to share your vehicle, driver history, and coverage preferences.
- Customize and bundle: Select your limits and add optional packages like roadside assistance or rental car reimbursement. Bundling your auto policy with home or umbrella insurance can unlock extra multi-product discounts.
Important Availability Notes
- Availability: Insurance via CONNECT (powered by American Family Insurance) is offered in most states and Washington, D.C.
- Restrictions: New policies are currently restricted or unavailable in certain areas, including California and Florida.
Costco (CONNECT) Car Insurance: Is It Worth It?
Who is Costco's Auto Insurance carrier?
Costco's auto insurance carrier is American Family Insurance through its CONNECT by American Family program.
Underwriter Details
- Underwriting Companies: Policies are underwritten by American Family Connect Property and Casualty Insurance Company, American Family Connect Insurance Company, or Midvale Indemnity Company.
- Availability: Available to Costco members in most U.S. states, though specific rules or availability vary by region.
Member Benefits
- Executive Perks: Executive Members often receive added perks like 24-hour roadside assistance and lifetime renewability on eligible policies.
- Bundling: Members can also bundle auto policies with home, renters, or umbrella policies.
Is $200 a month expensive for car insurance?
Paying $200 a month for car insurance is right around the national average for full coverage, but it is considered expensive if you only carry basic minimum liability.
When $200 a Month is Reasonable
- Full Coverage: The nationwide average for full coverage is roughly $194 to $209 a month.
- Higher-Risk Profiles: It is a normal or good rate if you are a younger driver, live in a crowded city or high-risk weather area, drive a new car, or have a minor blemish on your driving record.
When $200 a Month is Too Expensive
- Minimum Coverage: State minimum liability coverage typically averages $56 to $61 per month. Paying $200 for basic liability means you are overpaying.
- Clean Record and Old Car: If you drive an older vehicle that is paid off and have a clean driving history in a low-cost state (like Idaho or Vermont), $200 a month is too high.
As noted in a discussion on Reddit Personal Finance, a common consensus for lowering a high monthly bill is to increase your deductible if you can afford the out-of-pocket cost during a claim. You can also CNBC for more context on regional rate differences.
What insurance provider does Costco use?
Costco works with American Family Insurance (through Connect by American Family and Homesite) to provide auto, home, and umbrella insurance to its members.
Depending on the specific type of insurance or service you are looking for, Costco partners with different providers:
- Auto, Home, and Rents Insurance: Underwritten by subsidiaries of American Family Insurance and Homesite.
- Life Insurance: Offered through a partnership with Protective.
- Health Insurance (for Members/Businesses): Handled via the CBC Health Insurance Marketplace, which works with various regional and national carriers.
- Medicare Advantage Plans: Offered in select areas through a partnership with SCAN Health Plan.
- Employee Health Benefits: Most users on Reddit agree that Costco uses Aetna for internal employee health coverage.
Do seniors get free membership at Costco?
No, seniors do not get a free or discounted membership at Costco.
Membership Costs
- Gold Star Membership: Costs $65 per year.
- Executive Membership: Costs $130 per year.
- Senior Discount: Costco does not offer any age-based discounts or free tiers for senior citizens.
How Seniors Can Save
- Free Household Card: Every membership includes one free household card for another person living at the same address. If a senior lives with a family member or roommate who already pays for a membership, they can be added to it at no extra charge.
- Non-Member Services: In most states, you do not need a membership to use the Costco Pharmacy.
What state has the worst car insurance rates?
Louisiana has the highest average car insurance rates in the United States, with an average full-coverage annual premium of $3,999.
Top 5 Most Expensive States
- Louisiana: $3,999 per year for full coverage
- Michigan: $3,964 per year
- Nevada: $3,963 per year
- Florida: $3,916 per year
- Washington, D.C.: $3,465 per year (Note: counted alongside states in major indices)
Why Rates Are So High
- Lawsuits and Claims: High numbers of injury claims, legal disputes, and litigious environments drive up insurer payouts.
- Severe Weather: Frequent tropical storms, hurricanes, and flooding lead to costly comprehensive claims.
- Uninsured Drivers: A high percentage of uninsured motorists on the road forces insured drivers to pay more for protection against them.
- Traffic and Density: Heavy traffic congestion and dense urban areas increase the frequency of accidents.