Costco Car Insurance Review for 2025 [Comprehensive Overview]
Our Costco car insurance review highlights monthly rates of $31 and exclusive discounts for Costco members. It partners with American Family to provide cheap car insurance, and the Costco Auto Program can help save money when buying cars from local dealerships. Costco insurance is only available with a membership.
Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
UPDATED: Jan 7, 2025
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Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jan 7, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Costco
Average Monthly Rate For Good Drivers
$31A.M. Best Rating:
A+Complaint Level:
LowPros
- Membership discounts
- Comprehensive coverage
- Free roadside assistance
Cons
- Member-only access
- No rideshare coverage
Exploring our Costco car insurance review shows that it’s not just about savings — though members do often pay less.
Costco’s Auto Program partners with American Family Insurance to offer a range of plans that cover everything from liability to comprehensive damage.
Costco Car Insurance Rating
| Rating Criteria |  |
|---|---|
| Overall Score | 4.6 |
| Business Reviews | 5.0 |
| Claim Processing | 4.7 |
| Company Reputation | 4.0 |
| Coverage Availability | 4.9 |
| Coverage Value | 4.8 |
| Customer Satisfaction | 3.7 |
| Digital Experience | 4.0 |
| Discounts Available | 5.0 |
| Insurance Cost | 4.4 |
| Plan Personalization | 4.0 |
| Policy Options | 5.0 |
| Savings Potential | 4.6 |
Our Costco insurance review highlights other exclusive features for Executive members, like free roadside assistance and gap insurance.
Find the best rates for car insurance by entering your ZIP code now.
- Competitive monthly rates starting at $31 with Costco
- Drivers get exclusive member discounts with Costco car insurance
- Comprehensive coverage options are available at Costco through AmFam
Understanding Costco Car Insurance Rates
This table presents Costco car insurance’s monthly rates, differentiated by coverage level, age, and gender. For younger drivers, especially teenagers, rates are notably higher.
Costco Car Insurance Monthly Rates by Age, Gender & Coverage Level
| Age & Gender | Minimum Coverage | Full Coverage |
|---|---|---|
| Age: 16 Female | $183 | $451 |
| Age: 16 Male | $201 | $472 |
| Age: 18 Female | $149 | $332 |
| Age: 18 Male | $172 | $383 |
| Age: 25 Female | $43 | $108 |
| Age: 25 Male | $44 | $112 |
| Age: 30 Female | $40 | $100 |
| Age: 30 Male | $41 | $104 |
| Age: 45 Female | $35 | $89 |
| Age: 45 Male | $34 | $87 |
| Age: 60 Female | $31 | $77 |
| Age: 60 Male | $32 | $79 |
| Age: 65 Female | $35 | $87 |
| Age: 65 Male | $34 | $85 |
Costco car insurance often presents competitive pricing when matched against top industry players. For average car insurance rates by age and gender, Costco had cheaper prices.
Costco Car Insurance Monthly Rates vs. Top Competitors by Age & Gender
| Insurance Company | Age 20 Female | Age 20 Male | Age 40 Female | Age 40 Male |
|---|---|---|---|---|
 | $181 | $190 | $162 | $160 |
 | $124 | $147 | $115 | $117 |
| $108 | $112 | $89 | $87 |
 | $172 | $180 | $139 | $139 |
 | $97 | $93 | $80 | $80 |
 | $141 | $146 | $112 | $105 |
 | $101 | $111 | $86 | $86 |
Costco positioned itself as a leader against other automobile insurers, including Farmers and Allstate, which, in comparison to Costco, have added various upcharges onto their payout plans.
Costco's car insurance offers extensive coverage options and exceptional discounts, providing substantial savings and benefits exclusively to its members.
Brad Larson Licensed Insurance Agent
This chart shows how different driving records impact the monthly car insurance premiums for Costco. For drivers with one accident on their record, the monthly rate stands at $53 for minimum coverage.
For the same level of coverage, that doubles to $60 for those with a DUI. Drivers with one speeding ticket can still get a decent rate — $43 a month — but are worse off compared to drivers without tickets, who pay, on average, $34 per month.
Costco’s rate is $87 per month for drivers with a clean record, considerably less than those from alternatives like Allstate and Farmers. The pattern holds for those with one ticket, where Costco charges $109 monthly, and similarly for one accident, priced at $134/month.
Costco Car Insurance Monthly Rates Compared to Top Competitors by Driving Record
| Insurance Company | Clean Record | One Ticket | One Accident | One DUI |
|---|---|---|---|---|
| $160 | $188 | $225 | $270 |
| $117 | $136 | $176 | $194 |
| $87 | $109 | $134 | $150 |
| $139 | $173 | $198 | $193 |
| $80 | $106 | $132 | $216 |
| $105 | $140 | $186 | $140 |
| $86 | $96 | $102 | $112 |
Even drivers with a DUI find the Costco monthly car insurance rate of $150 comparatively reasonable, positioning it as a cost-effective option amidst a range of top competitors.
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Costco Car Insurance Savings and Available Discounts
Costco provides a range of car insurance discounts that can greatly lower your premiums. Costco’s member discount can save new members around $600 in their first year on average. Additional savings are available through the multi-car discount, as well as the discount for bundling policies such as home and auto.
Costco Car Insurance Discounts
| Discount Name | Savings Potential |
|---|---|
| Costco Member Discount | Average savings of approximately $600 in the first year for members. |
| Multi-Car Discount | Savings for insuring multiple vehicles under the same policy. |
| Multi-Product Discount | Discounts for bundling auto insurance with other policies like home or umbrella insurance. |
| Good Student Discount | Savings for full-time students maintaining good grades. |
| Student Away Discount | Discounts for students attending school over 100 miles from home without a car. |
| Safe Driver Discount | Rewards for maintaining a clean driving record. |
| Tenure Discount | Savings for long-term policyholders reaching certain milestones. |
| Premier Safety Discount | Rewards for exhibiting safe driving behaviors. |
For the younger demographic, good student and student-away discounts offer reductions for academic achievement. Seasoned drivers save from the safe driver and premier safety discounts for clean driving records and claims-free histories.
Opting for Costco's car insurance means navigating fewer complexities and enjoying substantial savings, especially for members who bundle policies.
Laura Kuhl Insurance Content Team Lead
The tenure discount takes advantage of milestone rewards for long-term policyholders, reinforcing Costco’s value and dedication to service.
Exploring Costco Car Insurance Coverage Options
Car insurance coverages you can buy through Costco include several different types of coverage through its Connect brand, managed by American Family Insurance.
With various options available, you can rest assured that you have appropriate road protection coverage. Here are some important coverages to think about:
- Liability Insurance: Covers damages and injuries you cause to others in an accident.
- Collision and Comprehensive Insurance: Collision pays for your vehicle’s repairs after an accident, while Comprehensive covers events like theft and natural disasters.
- Uninsured/Underinsured Motorist Coverage: Protects you if an at-fault driver lacks adequate insurance.
- Medical Payments and Personal Injury Protection: These coverages support medical expenses and, in some states, additional costs like lost wages.
- Extra Protection Options: Includes roadside assistance, rental car reimbursement, gap insurance, and new car replacement.
Choosing the right coverage is about balancing needs and legal requirements. Review these options carefully to ensure your car insurance meets your lifestyle and provides necessary financial protection.
Costco Car Insurance Feedback
Costco car insurance, underwritten by Connect by American Family Insurance, has earned great ratings from multiple respected agencies. J.D. Power rated it 850 on a scale of 1,000, meaning above-average customer satisfaction. It is A+, per the Better Business Bureau (BBB) rating, which reflects its excellent business practice.
Costco Car Insurance Business Ratings & Consumer Reviews
| Agency | |
|---|---|
 | Score: 850 / 1,000 Above Avg. Satisfaction |
 | Score: A+ Excellent Business Practices |
 | Score: 78/100 Positive Feedback |
 | Score: 0.83 Fewer Complaints Than Avg. |
 | Score: A+ Superior Financial Strength |
Consumer Reports gives it a score of 78 out of 100, reflecting positive consumer feedback. The National Association of Insurance Commissioners (NAIC) reports below-average complaints at a score of 0.83. It also receives an A+ rating from A.M. Best, indicating strong financial health.
Costco car insurance garners positive reviews mainly for its affordability and exclusive member discounts. Although feedback is strong regarding customer satisfaction, some limitations include its unavailability for non-Costco members and the lack of rideshare coverage.
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Costco Car Insurance Advantages and Limitations
Costco, through its partnership with American Family Insurance, offers car insurance under the Connect brand. Here’s a list of Costco auto insurance advantages:
- Bundling Discounts: Combine your auto insurance with home or renters policies for reduced rates.
- New Car Protection: Offers new car replacement and gap coverage for total losses.
- Exclusive Discounts for Members: Executive members receive additional discounts and benefits.
There are certainly drawbacks to consider, so you’ll want to assess these pros against your driving use case before making a decision.
- Membership Requirement: You must be a Costco member to access their insurance, which may not be feasible for everyone.
- No Rideshare Coverage: If you drive for a rideshare company, you’ll need to look elsewhere, as Costco doesn’t offer this type of coverage.
Costco’s car insurance could be a cost-effective choice if you’re already benefiting from their membership. However, the lack of rideshare car insurance coverage and the membership barrier might prompt you to consider other insurers.
Streamlined Protection With Costco Car Insurance
Our Costco car insurance review demonstrates that although the coverage doesn’t include rideshare situations, it remains a strong choice for those looking for reliable insurance through their Costco membership. This makes it particularly appealing if you already benefit from Costco’s myriad services and benefits.
Costco car insurance members gain key perks you can’t get elsewhere, including exclusive discounts and amenities like new car replacements and roadside help. Without a Costco membership, you can still compare American Family car insurance reviews to get affordable coverage.
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Frequently Asked Questions
Who owns Costco car insurance?
Costco car insurance policies are owned and underwritten by American Family Insurance through its subsidiary, CONNECT.
What insurance carrier does Costco use?
The insurance carrier that underwrites policies offered by Costco is CONNECT, previously known as Ameriprise Auto & Home Insurance, which is now under American Family Insurance.
How much does Costco insurance cost?
The cost of Costco insurance can vary significantly depending on factors like your driving history, the type of coverage you select, and your location. However, Costco members often pay lower rates thanks to group discounts and ways to lower the cost of car insurance.
Is Costco car insurance cheaper?
Costco auto insurance tends to be cheaper than other providers for its members. This is particularly visible for members who benefit from discounts and other advantages available exclusively through the Costco Auto Program when they compare the cheapest car insurance companies.
What is the advantage of the Costco Auto Program?
The Costco Auto Program offers members pre-negotiated prices on cars, parts, and services. Also, when it comes to insurance, members save money on rates, receive exclusive coverage options, and deal with trusted providers.
What company did Costco merge with?
Costco itself has not merged with another retail company recently. However, its insurance partner, Ameriprise Auto & Home Insurance, was acquired by American Family Insurance, which now provides the insurance services as CONNECT.
Is Costco’s car insurance any good?
Reviews indicate Costco’s car insurance is fairly competitive in coverage options and customer satisfaction, especially in areas where CONNECT by the American Family earns high ratings for service and car insurance claim investigation.
Is CONNECT Insurance by Costco any good?
CONNECT insurance, which Costco brokerages through American Family Insurance, has relayed reviews indicating that it has received good customer service, a variety of coverage options, and competitive pricing, especially for Costco members. Enter your ZIP code to find the best car insurance near you.
Costco car insurance vs. AAA: Which offers better benefits for members?
Both Costco and AAA offer unique advantages, so it is important to consider them while comparing Costco car insurance vs AAA. Through its collaboration with CONNECT by American Family Insurance, Costco offers members substantial discounts and other benefits. In contrast, our AAA car insurance review shows it’s renowned for comprehensive roadside assistance and a wider array of insurance products, which might be beneficial depending on your individual needs.
What company does Costco use for car insurance?
Costco provides car insurance through CONNECT, which is a part of American Family Insurance. This partnership allows Costco to offer tailored insurance products to its members.
What do users say about Costco car insurance on Reddit?
Costco car insurance reviews on Reddit are mixed, venting frustration with claim processing times and mentioning great customer service or prices on the policies. It’s advisable to browse through the most recent Costco car insurance reviews Reddit threads to get a broad perspective of current opinions.
Should you buy insurance from Costco?
Buying insurance from Costco can be a good decision if you’re already a member and looking to leverage additional member benefits, such as discounts on both home and auto insurance and excellent customer service, as reported in many reviews.
Do you need a Costco membership to buy car insurance?
Yes, you must be a Costco member to buy car insurance through their program. Membership provides access to exclusive insurance rates and extra perks, making it especially valuable when buying car insurance for a new car.
Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
