8 Unexpected Consequences of Canceling Your Costco Membership

An annual Costco Business or Gold Star membership costs $65, and an Executive option with more perks for $130. While these prices may seem steep, there are some perks of note that more than justify the purchase, and the discount on products from the warehouse is only one of them.

If you're looking to cut costs because buying in bulk encourages a higher bill — though, over time, that often evens out — canceling your Costco membership may seem like the right move.

Before making that decision, consider the following consequences of canceling your membership.

Editor's note: Prices and availability are subject to change and may vary by location.

While you can usually sign up for a Costco membership easily, having canceled one previously could make things a little more difficult. If you regret canceling it immediately, it may be some time before your new membership is activated.

Costco can and will restrict signups. If a person has canceled more than once or seems to be canceling right before the payment window to save money, their new application may be restricted.

Costco is known for its generous pricing, but did you know that they have an equally generous return policy?

Most products are subject to their 100% satisfaction guarantee if returned within 90 days of purchase, and often even after that. Your membership tracks your purchases, so you don't need to hold on to your receipts either. While they, fairly, won't refund cigarettes, alcohol, custom installations, shop cards, and gift cards, there is almost nothing you can't take back.

One Redditor purchased a camera system for their home, had it for months before installing it outside, and used it for weeks before realizing it was faulty. Their Costco location took it back with no issue. And that's just one of the incredible stories about their generous policy.

While most retailers offer great discounts around the holidays, Costco throws discounts on gift cards year-round. They sell a remarkable amount of physical gift cards to an array of different retailers and brands, and you'll never pay full price for them.

Pay just $79.99 for two $50-value Applebee's cards, get 14% off a $500 Southwest Airlines gift card, or save $15 on $60 to Krispy Kreme.

Costco actually provides a surprising amount of travel resources besides products to stock up on before a flight and discounted airline gift cards.

They have an entire department called "Costco Travel" that has an online presence similar to that of Expedia or other travel marketplaces. You can score deals on travel packages, hotels, cruises, and other vehicles instantly through their platform.

You can build your trip around specific events, locations, and time with additional resources through Costco Travel. You can even score discounted travel to specific Disney resorts.

Did you know that Costco has pretty extensive home improvement offerings? You can even stop in to speak with a representative about flooring, window treatments, solar panels, and more.

You miss out on great prices for new lighting, tiles, solar panels, flooring, home organization, and more, as well as schedule installation services all in one trip.

Home improvement projects are further incentivized by being rewarded with Costco Shop Cards upon completion of renovation projects.

When you pay lower prices for gas, you are often getting lower quality. But Costco memberships give you exclusive discounts at their pumps, which stock TOP TIER gas that is known to be higher quality and better for fuel efficiency long-term.

Some customers note they feel much safer purchasing gas at Costco stations, as they are well-lit and well-staffed.

You read that right. Costco has set out to get shoppers lower home and auto insurance rates. CONNECT by American Family Insurance is available through their website, and if you purchase a policy with Costco, you can receive a discount simply by being a Costco member.

Their auto insurance offers safe driving, student, and multi-product discounts. Home insurance provides lockout assistance, glass repair, equipment breakdown, and more.

Costco's Pharmacy is another service open to everyone, providing inexpensive, easy, in-person, and virtual care. That said, only members get discounts on prescription drugs and other perks.

Benefits include prices up to 80% cheaper than other pharmacies and deeper discounts on 90-day supplies of select medications.

Discounts extend to vaccines, including those for meningitis, hepatitis, shingles, and the common cold and flu. You can also treat your pet friend for a good price.

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The Costco membership is incredibly popular in the U.S. with a massive renewal rate of 92.7%. Shoppers love the in-house brand Kirkland Signature and other unique, discounted products you'll only find at a Costco warehouse.

But, although bulk prices help people tackle high grocery costs, many of the perks mentioned above are why people keep returning for more, so make sure you are willing to abandon them before canceling your card.