Costco Auto Insurance: User Reviews and Quotes (2024)
Costco members can access exclusive car insurance options through CONNECT by American Family. Robust coverage options and claims satisfaction may make it a good choice for you.
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A passionate personal finance advocate, Sarah’s writing has graced the pages of many of the personal finance and insurance industries’ top web publications.
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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You can buy a range of items from Costco, and now you can add car insurance to your shopping list at the wholesaler.
Costco works with CONNECT, by American Family, to offer auto insurance to its members. With lots of available discounts and an above-average claims satisfaction rating, this insurance option is worth looking into. But more customer complaints than expected could push you toward another insurance company.
Here, you can explore the advantages and disadvantages of Costco car insurance.
Quick Facts
Costco members can access discounted car insurance through CONNECT by American Family.
Many users enjoy the savings offered through this option. But some report a negative claims experience.[1]
Costco members in California or Florida can’t access coverage from the Costco Insurance Agency.
How Costco compares to other insurance companies
Costco car insurance, made available through CONNECT by American Family, is exclusively available to drivers with a Costco membership. If you already have a Costco membership to save money on other products, tapping into insurance savings could be a good choice, too. Although you can easily purchase a Costco membership, that’s another expense to account for when weighing your car insurance options.
But remember that Costco car insurance isn’t available in Florida or California, which means you could need to seek out insurance options elsewhere.
Our editorial team spent 350 hours developing the IQ (Insurify Quality) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.
We rate each company on a 1-to-5 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. We update ratings once a year or as more recent information becomes available.
Third-party financial ratings: We use data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
Customer satisfaction: To calculate this score, Insurify analyzed more than 28,000 customer reviews across 155 car insurance companies. We also considered third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the United States, as well as available discounts, to calculate an affordability score.
Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer’s transparency surrounding discounts, coverages, and claims process.
Availability and reach: Insurify identified the number of states in which insurers offer coverage and company size by market share to score availability and reach.
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Based on 3,806+ reviews
4.8/5
Costco car insurance coverage options
The right type of insurance makes all the difference to your wallet. CONNECT by American Family offers a wide range of coverage options. Here’s a look at the coverage options available through CONNECT by American Family.
Liability coverage
Most states require drivers to carry a minimum amount of liability coverage. If you cause damage or injuries during an accident, this policy helps to pay for repairs to other vehicles and medical bills for the other parties involved.
Comprehensive coverage
Comprehensive coverage pays for repairs or the replacement of your own vehicle after it’s stolen or damaged due to a covered event, like a hailstorm or natural disaster.
Collision coverage
Collision coverage helps pay for repairs to your own vehicle after an accident or collision with another object, like a tree.
Rental car coverage
If your vehicle isn’t operable after an incident, rental car insurance pays for a rental vehicle.
PIP coverage pays for medical costs, lost wages, loss of services, and funeral expenses after an accident. It’s a required coverage in some states.
Gap coverage
Drivers who lease or finance their vehicle might be required to carry gap insurance. After an accident that totals the vehicle, gap coverage pays the lender the difference between the car’s value and your remaining loan amount.
How to get a quote from Costco insurance
In order to get a quote from CONNECT by American Family, follow the steps below:
Start the process online or call the insurer. You can start the quote process online by providing your ZIP code and desired insurance type. Or you can call 1 (855) 531-9253 to get the ball rolling.
Provide information. Whether you call or start a quote online, be prepared to share information about your situation.
Consider your coverage options. Take a close look at the potential coverages available to you. Depending on your situation, add-on coverage or some other extras might be appropriate.
Finalize your quote. After sorting through the details, CONNECT provides you with a quote. If you’re happy with the coverage, you can finalize it.
Costco car insurance discounts
During the car insurance-shopping process, scoping out the discounts you qualify for can make a big difference to your costs. CONNECT by American Family offers an extensive suite of discount opportunities.
Below is a look at the discounts available through this insurance company.
Good driver
Premier safety
Defensive driver
Anti-lock brakes
Airbags
Automatic seat belts
Anti-theft devices
Garaging
Good student
Student away
Multi-car
Costco rewards executive members with a special discount. In addition, drivers with an executive membership may tap into roadside assistance and lifetime renewability for free.
How customers feel about Costco
Customers have had a wide range of experiences with CONNECT from American Family. Some customers are thrilled. But others aren’t pleased with the customer service experience.
Overall, CONNECT by American Family has average reviews on Trustpilot.
Costco ratings
As you shop for insurance, looking at independent ratings from third-party organizations can give you a better picture of what it’s like to work with a particular insurer. Higher ratings often indicate that customers have a positive experience.
The table below highlights some of the most important ratings available for CONNECT by American Family insurance.
Insurify partners with top companies to generate free quotes
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4.8/5
Other options for Costco customers
Beyond car insurance, Costco customers can tap into the following insurance coverages:
Home insurance: Homeowners insurance is available for Costco members.
Condo insurance: If you live in a condo, you might find the insurance you seek through Costco.
Umbrella insurance: For Costco members seeking more expansive liability coverage, an umbrella policy might suit your needs.
Specialty insurance: If you have an ATV, motorcycle, boat, or classic car, American Family’s specialty coverage could provide the protection you need.
Pet insurance: If you want to protect your wallet with pet health insurance, Costco offers an opportunity with Figo as a partner.
Notably, Costco doesn’t offer any type of insurance for new policies in California or Florida.
How to file a claim with Costco
If you need to file a claim with Costco, follow the steps below.
Go to the CONNECT by American Family website. You can file online with CONNECT. If you prefer a phone call, you can reach CONNECT to file a claim at 1 (800) 872-5246.
Provide information about the incident. Whether you file online or over the phone, you’ll need to provide your policy number, vehicle information, auto accident details, photos of the incident, any available policy reports, and the name of the other parties involved in the accident.
Find a repair shop for auto repairs. Although you’re free to use your own repair shop, American Family offers a search tool to find recommended shops in your area.
After American Family has all the information, it’ll move forward with resolving your claim.
Costco insurance FAQs
If you still have questions about Costco insurance, you may be able to find the answers below.
Is Costco legitimate?
Costco members can tap into a legitimate insurance option through CONNECT by American Family. It’s a legitimate auto insurance company with above-average claims satisfaction ratings in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study.
What kind of insurance does Costco provide?
Costco members can purchase home, renters, condo, umbrella, motorcycle, boat, RV, and auto insurance through CONNECT, which is powered by American Family.
Is Costco good at paying claims?
Yes. American Family, which powers the insurance options available through Costco, has an AM Best financial strength rating of A+ (Superior). It also earned an above-average rating from J.D. Power in its 2023 U.S. Auto Claims Satisfaction Study. The high marks indicate that Costco’s insurance option is good at paying claims.
How do I cancel my Costco insurance policy?
If you want to cancel your CONNECT by American Family insurance policy, you can get in touch with your local agent or call the customer care center at 1 (833) 381-1155.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
Property damage limits between $10,000 and $50,000
No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
Comprehensive coverage with a $1,000 deductible
Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Sarah Sharkey is a personal finance writer who enjoys helping people make savvy financial decisions. She covered insurance and personal finance topics. You can find her work on Business Insider, Money Under 30, Rocket Mortgage, Bankrate, and more. Connect with her on LinkedIn.
Sarah has been a contributor at Insurify since September 2022.
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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