Who backs Costco auto insurance?

Yes, car insurance through Costco is often cheaper than average, but it is not universally the lowest price for every driver.

Costco does not sell insurance directly. Instead, it partners with CONNECT, powered by American Family Insurance, to offer exclusive member discounts.

How Pricing Works

• Average Savings: Full-coverage policies through the Costco Auto & Home Insurance Services average around 10% below the national average, and some drivers report saving hundreds of dollars compared to major providers like GEICO or Progressive.
• Individual Variability: Rates depend heavily on your age, location, vehicle type, and driving record. Opinions on Reddit and Facebook are mixed, with some members finding better rates with competitors like State Farm, while others secure massive savings through Costco.
• Membership Requirement: You must maintain an active Costco membership to qualify for these rates and discounts.

Perks and Member Benefits

• Executive Perks: Costco Executive Members receive added benefits at no extra cost, including lifetime renewability (your policy cannot be unexpectedly canceled after multiple claims) and free roadside assistance.
• Standard Discounts: Available savings include multi-car discounts, good student rates, defensive driver courses, and garaging discounts.

Some customers are rethinking their memberships due to FinanceBuzz reasons like geographic relocation, changing household sizes, and fee increases.

While Costco's overall U.S. and Canadian renewal rates remain exceptionally high at over 92%, some members choose to cancel or not renew for specific reasons.

Common Reasons for Member Dissatisfaction

• Fee and Inflation Pressures: Membership fees increased (Gold Star to $65 and Executive to $130), which frustrates some budget-conscious or fixed-income households dealing with broader grocery inflation.
• Bulk Size Mismatch: Large package sizes do not suit single-person or two-person empty-nester households, sometimes leading to food waste that negates the perceived savings.
• Stricter Security and Tech Changes: Mandatory digital membership cards, biometric checks, photo ID matching at entrances, and rigorous receipt scanning make some shoppers feel unwelcome or monitored.
• Perceived Quality and Product Shifts: Complaints over "shrinkflation" (smaller portions) and slight declines in the quality of certain Kirkland Signature items have alienated long-time fans.
• Inconvenient Policies: Costco closes on major holidays and some shoppers struggle with distance if they move away from a physical warehouse. Other consumers previously expressed frustration over corporate legal battles or online shopping friction.

Yes, on average, Costco car insurance (provided through CONNECT by American Family Insurance) tends to be cheaper than Progressive, though rates vary based on your personal driving profile and location.

Cost Comparison

• Average Rates: Industry data shows that national average annual premiums for CONNECT through Costco hover around $1,068, whereas Progressive averages closer to $1,482.
• Member Perks: Costco members get exclusive pricing, and Executive members get extra benefits like roadside assistance and a lifetime renewability option (meaning your policy can't be canceled just for filing claims).
• Individual Factors: Your actual price depends heavily on your ZIP code, vehicle, and driving record. Some drivers actually find Progressive cheaper or report steep rate hikes with CONNECT upon renewal.

You can check out rates yourself or learn more about the partnership on the Costco Auto and Home Insurance Services page.

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:

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.

Costco partners with specific insurance companies through the Costco Insurance Agency to offer discounted rates and special member benefits.

Auto, Home, and Umbrella Insurance

• CONNECT by American Family Insurance: This is Costco's primary partner for auto, home, and personal umbrella insurance.
• Underwriters: Auto policies are underwritten by American Family Connect Property and Casualty Insurance Company, American Family Connect Insurance Company, or Midvale Indemnity Company. Home policies are underwritten by Homesite Insurance companies.

Other Insurance Types

• Life Insurance: Handled and underwritten by Protective Life.
• Pet Insurance: Offered in partnership with Figo, which is underwritten by Independence American Insurance Company.
• Medicare Advantage Plans: Partnered with SCAN Health Plan in select counties across California and Nevada.
• Health, Dental, and Vision Insurance: Offered through the CBC Health Insurance Marketplace for Costco members, featuring multiple carrier networks like Ameritas, Delta Dental, and UnitedHealthcare.