Costco Auto Insurance Review [2024]: Additional Discounts for Members

While Costco insurance is not available in every state, it does offer more perks for members than traditional auto coverage, such as roadside assistance and exclusive discounts. So if you don’t mind buying a Costco membership for $60 to $130, you could save money with its auto insurance.

You will have to call an agent for a quote, which can be cumbersome, but you won’t find the rewards of a waived-deductible for windshield repairs or accident travel expense coverage with most other companies.

Costco offers auto insurance through CONNECT, an American Family Insurance company, with exclusive discounts and perks for members. Most Costco members will receive free roadside assistance and an additional discount — though some states do not qualify for the discount.

If you don’t mind having a Costco membership to get car insurance coverage, it is possible to save more money through CONNECT than competing car insurance providers. Let’s see how it measures up as far as coverage and availability goes.

How we evaluate products

To decide if Costco auto insurance through CONNECT was worth it for the reader, I compared the company with top competitors, including Geico, Farmers, and Progressive. Here are a few specific things I focused on:

• Availability: Both Geico and Progressive offer car insurance coverage in all states. Costco insurance is only available in 42 states, since it is not accepting new California or Florida drivers.
• Rating: CONNECT’s parent company, American Family Insurance, ranked below average on the J.D. Power 2024 Claims Satisfaction Study, but CONNECT as a stand alone company did not rank at all. It did rank second place for customer satisfaction in California for another J.D. Power study, but since new California customers can’t use CONNECT, this was disregarded.
• Discounts: As far as discounts go, CONNECT offers the average discounts that most insurers offer. It does not offer as many discounts as Farmers, but it also offers unique perks like free roadside assistance and waived deductibles for windshield repair.

Costco insurance pros and cons

Who is Costco insurance a good option for?

For those that already have a Costco membership, it is worth getting an auto insurance quote from them. It is a good option for those who want free roadside assistance, since the perk comes with your Costco membership. Roadside Assistance covers up to $75 per occurrence (higher coverage levels for some states), but it will not cover the replacement of a battery, keys, or fluids. With other insurance companies, expect to pay $4 to $100 a year for roadside coverage, depending on your vehicle’s age and model. For example, my 2020 Toyota Prius has a roadside assistance charge of $2 per six-month term, but my 2015 Toyota Sienna costs around $20 per six-month term.

Another perk that makes Costco insurance stand out is the free Glass Repair Deductible Waiver — if your windshield can be repaired rather than replaced, CONNECT will waive your deductible.

If you are worried that your car insurance policy will drop you either because you live in an expensive state or you are worried about driving habits, members receive lifetime renewability that guarantees your auto insurance policy will always be renewed. However, this particular perk isn’t available in Maryland or Michigan or for any member that has a major violation, such as a DUI, or has failed to pay their premium.

Types of coverage	Comprehensive Collision Bodily injury liability Property damage liability Uninsured motorist Medical expenses Roadside assistance and towing Rental car insurance Personal injury protection Guaranteed auto protection
Discounts available	Premier safety discount Good driver discount (only for existing California members) Defensive driver discount Vehicle safety features discount Garaging discount Student away discount Multi-car discount Tenure discount Bundling discounts
Where you can use it	Costco app on Android or iOS Online at the Costco website
Customer support	customersfirst@connectbyamfam.com 1-888-239-9953 Monday to Friday 7 a.m. to 10 p.m. CT Saturday 8:30 a.m. to 7 p.m. CT
Availability	44 states and Washington, D.C.

What insurance does Costco offer?

Costco’s CONNECT is available in 44 states and Washington, D.C. The six states where CONNECT isn’t available are Alaska, Louisiana, Maine, North Dakota, Rhode Island, and Wyoming. It also announced that it will not be writing new policies for California and Florida drivers, though current members will not be dropped.

CONNECT auto coverage options

CONNECT auto insurance has the following coverages that you could include in your policy:

• Bodily injury liability: This type of liability insurance coverage covers the costs of injuries to other drivers if you have an accident where you are at fault.
• Property damage liability: This is a cost coverage for repairs or replacement of a vehicle or property if you get into an accident that is your fault.
• Collision coverage: Collision insurance covers damages to your vehicle caused by a collision with another vehicle or object.
• Comprehensive coverage: Comprehensive insurance covers damage to your vehicle that isn’t related to collisions, such as damage from a storm or an impact with an animal.
• Uninsured motorist: This coverage kicks in when you’re in an accident with an uninsured driver. Uninsured motorist coverage covers your injuries or property damage from an accident with a driver who doesn’t have adequate car insurance.
• Medical expense: This coverage helps pay your medical bills if you get injured in a car accident.
• Personal injury protection (PIP): This protection covers your medical expenses, lost wages, or funeral expenses regardless of who was at fault in an accident.
• Guaranteed auto protection (GAP) insurance: If you get in an accident with a new car, GAP insurance pays the difference between the current value of your vehicle and the original amount of your car loan.
• Roadside assistance & towing: This coverage provides assistance if you get a flat tire, your battery dies, you are locked out of your car, or in other situations when there is something wrong with your car.
• Rental reimbursement coverage: This insurance provides rental reimbursement that covers the cost of a rental car if your own car was damaged in an accident and is getting repaired. This coverage is different from rental car insurance, which insures a vehicle you are renting.

CONNECT products and availability

CONNECT offers more types of insurance policies, and you might be able to save money by bundling your car insurance with other insurance products it offers. When compared to popular companies such as Geico and Progressive, CONNECT does offer fewer insurance options, such as no mobile/manufactured home coverage, life insurance, and pet insurance.

Here’s what is covered:

• Vehicle: Alongside regular car insurance, CONNECT can also cover your motorcycle, boat, RV, off-road vehicle, or collector car.
• Property: You can opt for homeowners insurance, renters insurance, and condo insurance. CONNECT also offers add-ons that aren’t found with many companies, such as refrigerated property coverage, service line coverage, and identity theft coverage.
• Umbrella: CONNECT offers additional coverage beyond your auto, homeowners, or renters insurance coverage.
• Business: For those with business insurance needs, CONNECT offers commercial auto insurance, commercial general liability, and a business owner policy (BOP).

How much does Costco auto insurance cost?

The cost of Costco auto insurance varies depending on your coverage level. When I tried to request a quote online, I was led to a generic page that prompted me to call for a quote instead. This happened with several zip codes, including an Arizona and New York zip code. This was frustrating because online quotes are easier to receive and compare with other auto quotes.

We did have Costco auto insurance in 2012 because it was the most affordable coverage at the time. Also, at this time, it was available in California. We switched to Geico in 2015 when Geico was able to give us a quote for about $50 less per six-month premium.

According to Costco, members who use CONNECT auto insurance save an average of $595.86 in the first year they have the insurance.

How to find insurance discounts

CONNECT auto insurance offers discounts for safe driving and vehicle safety, including:

Discount type	How to get it
Good driver discount	For current California members who have good driving habits
Premier safety discount	Not had any traffic violations, accidents, or claims for the past four years
Defensive driver discount	Take a defensive driving course approved by your state’s DMV or an accredited organization
Vehicle safety discount	Have one or more of the following installed: anti-lock brakes, airbags, automatic seatbelts, anti-theft devices
Garaging discount	Keep your car stored in a garage overnight
Good student discount	CONNECT doesn’t specify what counts as good grades, but most insurers require a 3.0 or B average to get this discount
Student away discount	For students living 100 miles away from home and their vehicle
Multi-car discount	Have more than one vehicle on the policy
Bundling discount	Bundle your auto insurance with your homeowners, renters, or umbrella insurance policies

How to maximize savings

The best way to save on your Costco auto insurance policy is to increase your deductible. Since the policy comes with a waived deductible for cracked windshields, you won’t have to worry about meeting your deductible to get one of the most common car issues fixed. With a higher deductible, you will also want to build up your emergency insurance fund to cover the cost in the case of an accident or needed car repair.

Other methods of decreasing your car insurance costs include:

• Switch drivers: If you have multiple drivers and vehicles on the insurance, ask your agent which driver with which vehicle costs the least. Sometimes a driver's age and/or gender could result in a lower price for certain vehicles.
• Drop the add-ons: You might not need rental car insurance or roadside assistance if you receive that perk through other memberships, such as work benefits or an AAA membership.
• Bundle coverage: First, get a quote for homeowners or renters insurance, and if it is more than your current premium, ask if the insurance company will price match along with the bundling discount.

How to get an insurance quote from Costco auto insurance

If you want to get a car insurance quote with Costco, skip the online quote input and call (855) 531-9253. While an online quote would be quicker, it doesn’t seem like the company offers online quotes anymore.

Thankfully you don’t need to be a Costco member to request a quote, though you will need a membership to sign up for a policy. These memberships begin at $65 per year for Gold Star members and $130 per year for Executive memberships.

When you are connected with an agent, expect to answer basic questions, such as your name, date of birth, email address, and residence address. You will also be asked about other drivers you want to insure and all the vehicles you want on the policy, along with questions about your driving history and daily commute.

FAQs

Bottom line

Costco’s CONNECT insurance offers rates that might help you save money on car insurance. However, CONNECT isn’t available in six states, and you need to be a Costco member to access it in the states where it’s available.

You don’t have to be a Costco member to get an auto insurance quote. You could go through the quote process to compare it to what the best car insurance companies offer and decide if a Costco membership is worth it.

If you are already a Costco member, you may find it beneficial to bundle your car insurance with your renters or homeowners insurance to save more on your total insurance costs. Keep in mind that CONNECT receives more-than-average customer complaints than other insurance providers.