When it comes to insurance, they can get it for you wholesale.
Do you shop at Costco, the famed warehouse club known for selling merch in bulk—from rotisserie chicken to Kirkland shirts? As it happens, you can get more than just 12-packs of hammers and baked beans at Costco. Through its joint program with insurance company Ameriprise, you can now purchase auto, home, and even life insurance.
Buying Costco insurance is a unique opportunity that has both its benefits and drawbacks. Read on to learn how you can take advantage of Costco auto insurance and compare offers with Insurify.
In order to be eligible for Costco insurance, you must be a Costco member. Not already a member? Here are the membership fees for each tier:
|Membership Type||Annual Cost||Features|
|Gold Star||$60||Entry to all Costco stores
One card per household
|Gold Star Executive||$120||2% off qualifying Costco purchases and Costco travel purchases|
|Business||$60||Ability to add additional people to membership for an extra $60 annual fee
Memberships and all purchases qualify for resale
|Business Executive||$120||All possible membership services: 2% off select items; ability to add additional members; resale value on goods|
Costco, in this case, is merely the affinity group associated with the insurance program, not the actual insurer. That means that Costco doesn’t actually provide the insurance—Ameriprise does all of the underwriting. Costco members who decide to switch coverage to this program are eligible for further discounts (see below).
According to Ameriprise’s website, over 300,000 Costco members have their auto and home insurance covered by through this affinity program.
There are some exceptions to the rule. Costco and Ameriprise don’t offer auto insurance in the following states: Alaska, Louisiana, Maine, North Dakota, Rhode Island, and Wyoming. Additionally, Tennesseans will not qualify for rate discounts through Costco auto insurance, whereas only Executive Costco members are eligible in Massachusetts.
Costco offers auto, home, health, and life insurance through its affinity program with Ameriprise. Ameriprise is known for its strong (if not industry-gold-standard) rates, discounts, and coverages.
Costco auto insurance provides all of the standard coverage that drivers need: these include liability coverage (bodily injury and property damage), collision and comprehensive coverage, and personal injury protection. Members have the freedom to use their licensed facility of choice for auto repair.
Costco’s life insurance product is through Protective, which enjoys a positive industry reputation. However, it’s worth noting that the policy offered to Costco members through Protective is a universal life insurance policy. Universal life insurance tends to have lower premiums, but it is a form of permanent coverage with an investment savings component, so it depends on overall market stability to work.
Optional coverages that drivers can buy for their car insurance policy include:
All Gold Star and Business members receive a $50 Costco cash card for Gold Star and Business members. Gold Star Executive and Business Executive members receive a $100 Costco cash card. Just remember to ask for this voucher, as it might take a while to get to your door:
Executive members stand to earn additional benefits, including:
This feature is not available to you if you:
Overall, Costco boasts that members who saved on their policy save an average of around $575 the first year of their switch.
All members get 5 to 10 percent off Ameriprise’s standard rate. This will reduce one’s auto insurance quote by a few dollars, but of note is that this discount is about the same price (or more!) than a Costco membership.
Discounts available to Costco car insurance policyholders include, but are not limited to:
Because Costco members save 5 to 10 percent on an Ameriprise policy, it could very well work in your favor to buy your insurance through Costco rather than directly from Ameriprise—even if that requires signing up for a new Costco membership.
How do you know you’re getting the best deal for your driver profile and specific needs? Costco insurance will cost different amounts for each policyholder, but typically, Ameriprise offers competitive rates.
Let’s investigate. The following quote from Ameriprise corresponds to the following driver profile: male; single; 36 years old; living in Chandler, Arizona; driving a 2016 Acura ILX; has no kids who drive; owns a home; has a clean driving record.
Ameriprise offers this quote in the form of a 6-month total premium.
The data scientists at Insurify then compared auto insurance quotes for the same driver profile using Insurify’s quick quote comparison flow:
For this driver profile, Ameriprise proved to be among the cheapest deal for a 6-month policy period! However, each driver profile is different, so it’s important to keep in mind which elements of your driver history and personal life might impact your rates.
You may very well unlock some savings on your current premium while switching to Costco auto insurance, but you can’t be sure if it’s the absolute best option for you unless you do some online car insurance quote comparison of your own.
If you’re a Costco member considering switching over to Costco’s coverage through Ameriprise, there are only two things you have to do next:
Insurify’s intuitive flow will guide you through the steps to unlock discounts and specify the elements of your risk profile. You can unlock savings opportunities and bundle packages for which you’re eligible, all in a matter of a few minutes.
Once you get 5-7 quotes from top insurance companies, you’ll be able to compare available rates to that of Costco’s. You’ll then know that you’re getting the best value based on your needs and risk profile.
Suppose you go with Costco insurance after you’ve compared quotes and found the best coverage for you. Since Costco car insurance, as well as its other coverage packages, is underwritten by Ameriprise, it’s the latter company’s customer service that you’ll be relying on every step of the way.
In terms of Ameriprise’s financial reliability, you should be able to rest easy. Ameriprise itself is noted for its stability. A.M. Best, the foremost credit rating agency for the insurance industry, has given the company an “Excellent” rating. You should have no problem with your claims being paid.
Furthermore, Ameriprise has an Insurify Composite Score of 79. The Insurify Composite Score, measured out of 100, is calculated by analyzing multiple factors that indicate the quality, reliability, and health of an insurance company. Rankings from A.M. Best as well as financial strength ratings from Standard & Poor’s, Moody’s, and Fitch are all taken into account for these ratings. The Insurify Composite Score also weighs J.D. Power ratings, Consumer Reports customer satisfaction surveys, mobile app reviews, and user reviews. Overall, Ameriprise’s score of 79 can be seen as average to above average in terms of industry standards.
So, what are customers saying about Costco insurance? Several real-life customers have been quite positive about their claims experiences with Ameriprise:
What’s more variable is Ameriprise’s customer service record.
Several customers have commented on Ameriprise’s slower-than-average claims processing and lack of responsiveness. Notably, the company has a sizeable number of poor reviews on its Better Business Bureau profile. Typically, customers will complain about the amount of payment they receive after filing a claim and how long Ameriprise took to pay out these claims.
Is Costco auto insurance right for you? Here’s our assessment:
Happy shopping…shopping in bulk, that is.