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Costco Car Insurance [April 2025]: Only for Costco Members

As a Costco member, you can purchase auto insurance through CONNECT, an American Family Insurance company. Here's what you need to know about coverage, premiums, and perks with this insurer.
Updated April 22, 2025
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Costco offers car insurance through CONNECT, an American Family Insurance company, with exclusive discounts and benefits for members. Costco members may receive perks like roadside assistance and an additional discount on their premiums, though some states don't qualify for the discount, and coverage is available in 42 states and Washington, D.C.

While Costco car insurance in partnership with CONNECT isn't available in every state, its policies are worth checking out if you qualify because average rates can be pretty competitive for many driver profiles. That said, you'll want to factor the cost of continued Costco membership into your calculations when crunching the numbers, and I wouldn't necessarily suggest buying a Costco membership just for the car insurance (unless you're quoted prices that easily justify this). Costco's Gold Star membership costs $65 a year, and its Executive Membership is $130 a year, so we're talking about a lot of hot dogs just to get in the door. Note that some car insurance perks are available only to Executives.

If you don't mind having a Costco membership to get car insurance coverage, it is possible to save more money through CONNECT than with competing car insurance providers. American Family Insurance also scores well on customer and claims satisfaction.

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Costco car insurance pros and cons

Pros
  • Exclusive discounts and benefits for Costco members
  • Lower premiums than many other car insurance companies
  • High claims satisfaction
Cons
  • Must be a Costco member to qualify
  • Some benefits exclusive to Costco Executive members
  • Not available in all 50 states

Five-month payment plan
CONNECT for Costco members is unique in providing a Payment Holiday option. This lets you repay a standard six-month policy in five payments instead of six, allowing for one "off" month during your policy.

How much does Costco car insurance cost?

Costco car insurance costs a good deal less than most car insurance, on average. Its average premiums for people with accidents and tickets stand out as especially low, both for liability-only and full coverage. It's also a great option for teen drivers, who generally have some of the highest rates, and seniors, who generally have some of the lowest rates.

These aren't the best premiums I've ever seen (GEICO, Auto-Owners, and State Farm offer better average costs), but they are good.

Note that all the following average prices are for American Family Insurance. We don't have specific information on Costco's exclusive member-only prices, so your premiums may very well look different (likely better) than these if you choose this company. Here's a breakdown of American Family's average prices.

Driver type Costco car insurance liability-only monthly premium Costco car insurance full coverage monthly premium
Clean driving record $69 $151
Speeding ticket on driving record $84 $185
At-fault accident on driving record $89 $195
DUI on driving record $112 $246
Teen driver $124 $271
Senior driver $49 $107
Data sourced from Insurify

Now, take a look at how those prices compare with the national average rates across companies for similar coverage.

Driver type National average liability-only monthly premium National average full coverage monthly premium
Clean driving record $105 $192
Speeding ticket on driving record $141 $265
At-fault accident on driving record $146 $274
DUI on driving record $166 $313
Teen driver $194 $364
Senior driver $85 $160
Data sourced from Insurify

Is Costco car insurance good?

Company ratings:

  • AM Best: A (Excellent)
  • J.D. Power claims satisfaction: 692/1,000 (study average 697)
  • BBB: A+ (CONNECT, powered by American Family Insurance)
  • NAIC complaints: 0.47

Again, I'm going to be talking about American Family Insurance here since that's who you're really purchasing coverage from when you buy car insurance through Costco. The following data doesn't exist for Costco car insurance because Costco itself isn't the underwriter.

American Family as a whole scored just below the average of 697 in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, ranking above AAA, Auto-Owners Insurance, GEICO, Allstate, and others. In this study, it was outranked by as many companies as it outranked, including Farmers, State Farm, Liberty Mutual, and Nationwide.

All signs point to American Family Insurance being financially stable as well, according to AM Best. The third-party credit rating agency gave the insurer its third-highest rating for financial stability, indicating a more-than-sufficient ability to fulfill its obligations to consumers, though not quite the best showing of any company (that would be A++, which I've yet to see an insurance company score).

Finally, there's the more than respectable 0.47 complaint index with the NAIC. The NAIC collects complaints consumers submit to their state insurance departments, and an index of 1.00 is the expected average for the market. This means that American Family has a below-average share of total complaints relative to its market share, and this is one of the lower values I've seen for this index.

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Discounts

CONNECT car insurance for Costco members offers a decent variety of discounts, including the one I've mentioned a few times that may be available to you simply for being a Costco member. This isn't the most discounts an auto insurance company offers, but it's also not the least, and it's important to keep in mind that American Family's rates are reasonably competitive to begin with.

In addition to the discounts in the table below, the company provides a Garaging Discount for people who park their cars in a garage overnight.

Discount Does Costco have it? AAA GEICO
Loyalty Yes Yes No
Multi-policy/bundling Yes Yes Yes
Multiple vehicle Yes Yes Yes
Airbag Yes Yes Yes
Anti-lock brakes Yes Yes Yes
Anti-theft Yes Yes Yes
Safe driver Yes Yes Yes
Good student Yes Yes Yes
Away-from-home student Yes Yes Yes
New car No Yes Yes
Pay in full Yes Yes Yes
Automatic payments No Yes Yes
GAP insurance No No No
Senior No No No
Military No No Yes
Defensive driving course Yes Yes Yes

Editor's note
CONNECT also provides a Good Driver Discount to California residents only. This is a safe-driving discount that's slightly different from the safe-driving discount available to everyone.

Telematics

CONNECT insurance for Costco does not offer a telematics or usage-based insurance plan that tracks your driving to potentially lower your car insurance.

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Coverage

Costco's car insurance coverage is great, but not stellar. It covers the basics and then some, with a few uncommon types of add-ons. However, while it's nice to see choices like rental car insurance and roadside assistance, plus perks for windshield fixes (we've all been there, right?), it would be great to also see a few more specialty coverage options, such as GAP insurance, total loss replacement, or repair add-ons.

If you don't see a coverage option you're looking for, Farmers stands out for its specialty policies, and Nationwide provides a wide range of policy types.

Costco car insurance vs. competitors

As mentioned, American Family tends to beat the national average on prices, as well as a few of its top competitors. Costco provides exclusive member discounts on top of this for qualified drivers who purchase CONNECT policies, so you can safely assume you'll pay below-average rates with this insurer in many instances.

Here's a breakdown of average prices for full- and liability-only coverage for some of the best car insurance companies. You'll notice that American Family provides lower average rates than Nationwide but higher average rates than Progressive, Allstate, and others.

Company name Average monthly full coverage Average monthly liability-only coverage
USAA $99 $46
GEICO $118 $55
State Farm $119 $55
Allstate $132 $62
Progressive $148 $101
American Family $157 $72
Nationwide $181 $85
Travelers $191 $90
National average $199 $105
Farmers $236 $110
Liberty Mutual $250 $169
Data sourced from Insurify

Note
Consider the cost of Costco membership if you don't plan on using it. Switching insurances to save $50 won't be worth the $65+ membership if you aren't a regular Costco shopper.

Costco car insurance vs. AAA

AAA is similar to Costco in that it partners with other insurance companies to underwrite auto insurance policies, and, like Costco, it requires membership. But AAA is different from most car insurers because it operates as a network of local clubs, so prices and product availability can vary by region or even ZIP code. The exact insurer or underwriter you work with through this company also depends on where you're located.

Both of these companies are good options if you value benefits that go beyond car insurance, and they are roughly neck and neck when you look at BBB, AM Best, and J.D. Power ratings. I'd recommend checking your potential rates with both, since it's impossible to know exactly what either will cost you without going through this step.

Costco car insurance vs. GEICO

Yes, Costco's auto insurance is competitively priced, but GEICO has lower premiums on average than American Family Insurance. However, this doesn't mean you won't save by purchasing insurance through Costco and accessing member-only discounts with CONNECT.

Because both these companies offer relatively low rates compared to other car insurance companies, I suggest getting quotes from each to see which one provides better premiums for your situation. The two score similarly for financial stability and customer satisfaction,m and you can get quotes online in a matter of minutes.

FAQs

How do I contact Costco car insurance?

You can call 1-888-239-9953 to connect with Costco's car insurance representatives between the hours of 7 a.m. and 10 p.m. CT Monday through Friday or 8:30 a.m. and 7 p.m. CT on Saturdays.

If you're like me and prefer not to make a phone call that isn't absolutely necessary, email servicepromise@connectbyamfam.com if you've already got an account (or customersfirst@connectbyamfam.com if you don't have a policy and want to talk to the sales team).

Can you get Costco car insurance without a membership?

No, you can only get Costco's CONNECT car insurance if you are a Costco member. However, you don't need to be a member to get a quote from Costco to see if it offers better rates than your current insurance company.

Is car insurance cheaper through Costco?

Car insurance may be cheaper through Costco, but this depends on the type of policy you need. Get a quote to find out what prices you might be offered for your desired coverage, whether you're a Costco member or not.

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Bottom line

Costco's CONNECT auto insurance offers rates that might help you save money on car insurance. However, CONNECT isn't available in eight states, and you need to be a Costco member to access it in the states where it is available. I'd recommend checking this company out if you're already a Costco member or considering becoming one and would use the membership for more than just car insurance. Costco's auto insurance may also be a good fit for people with straightforward policy needs who are primarily interested in low rates, including teen drivers, seniors, and people with accidents or incidents in their driving histories.

You don't have to be a Costco member to get an auto insurance quote, and you can go through the quote process to compare it to what the best car insurance companies offer to decide if a Costco membership is worth it. You should also find out if any other CONNECT insurance products are a good fit for you, since you may be able to lower your car insurance further by bundling.

Save On Your Auto Insurance
  • You could save up to $600 with some companies.
  • Compare dozens of providers in under 5 minutes.
  • Fast, free, and easy way to shop for insurance.
  • Quickly find the perfect rate for you.

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