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Costco Car Insurance Review (With Quotes, 2023)

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Costco members are used to discovering big savings when they buy in bulk—a Costco membership can get you discounts on anything from fruit snacks to toilet paper. Now, the company is offering another way to save money, car insurance! Costco maintains partnerships with CONNECT, powered by American Family, to offer its members affordable policies.

How does Costco compare to other auto insurance policies? Insurify makes it easy to compare car insurance rates, perks, and discounts by delivering quotes from top insurance providers. Just a few minutes of research can help you find an affordable car insurance policy that fits your needs.

Costco in a Nutshell

  • The average cost of car insurance with Costco is $84 per month.

  • Costco is good for affordable rates, Costco executive members, and motorists who have had recent accidents.

  • Costco isn't the best option for people who want a personal relationship with an agent.

Costco Industry Rankings and Scorecard

American Family Insurance, the company underwriting Costco’s insurance products, has a great financial strength rating. Here’s how Costco compares to the average ratings of other insurance companies.

Insurify Composite Score Methodology

The Insurify Composite Score is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.

Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.

Industry RankingAmerican Family Rating
Insurify Composite Score (ICS)89 out of 100
J.D. Power889 out of 1,000
A.M. BestA
NAIC Complaint IndexFewer than average

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Costco Car Insurance Quotes by Driver History

Like other insurance companies, Costco’s insurance partners prefer to insure people who have clean driving records. People who have proven themselves to be safe drivers and don’t file a lot of insurance claims may qualify for driver discounts on their car insurance.

Driver ProfileCostco Average Monthly PremiumNational Average
Clean Record$55$77
At-Fault Accident$94$113
Speeding Ticket$76$104
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

See More: High-Risk Car Insurance

Costco Car Insurance Quotes by State

Something as simple as your ZIP code can impact the cost of your car insurance. It’s just one factor that insurance companies consider, along with age, gender, and credit score. We found these rates across the U.S. that demonstrate how much premiums can vary, even though they’re all from the same insurer.

StateCostco Average Monthly Premium
North Dakota$20
South Dakota$29
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Costco Car Insurance Pros and Cons

Costco’s car insurance is limited to people who are already receiving a Costco member discount with their membership. It’s best for those who have executive memberships. Here are a few of the positives and negatives that members can expect from American Family CONNECT, the company that provides Costco’s car insurance.


  • Great perks for executive members

  • Gap insurance and rental car reimbursement available

  • Many discounts


  • Not many options to customize coverage

  • Not available in all states

See More: Best & Worst Sites to Compare Car Insurance Quotes

Costco Car Insurance Discounts

Costco is known for its discounts, and its car insurance is no exception. The company offers many of the standard discounts that many car insurance companies have, plus several more that you’re unlikely to find elsewhere.

Driver-Based Discounts

Live in California? You may be eligible for a good driver discount designed to incentivize you to drive safely. This safe driving discount is called the Premier Safety Discount in other states. The company also offers young drivers good student and away at school discounts.Drivers who complete defensive driving courses or install safety features in their car can save extra.

Policy-Based Discounts

If you insure more than one car with Costco, you’ll be rewarded with a multi-car discount. You can also earn tenure discounts if you carry the same policy for a long time; the company will reward you with a lower rate than someone would pay in their first year with the company.

Bundling Discounts

Costco rewards drivers who bundle their home insurance or umbrella insurance policy together with their auto policy. Keeping your homeowners insurance, umbrella policy, and car insurance policies with one company can be convenient for policyholders, and bundling can also earn you big discounts on all bundled policies.

See More: Cheap Car Insurance

Costco Car Insurance Coverage Options

All American Family CONNECT customers who purchase their policies through Costco receive basic auto coverage that includes collision, comprehensive, bodily injury and property damage liability, medical payments, and coverage for uninsured and underinsured motorists.

Those with basic Costco memberships can choose to add on rental car insurance, personal injury protection (PIP), gap insurance, and roadside assistance. There are also some additional perks that are only available to Costco Executive members.

Roadside Assistance

Costco’s roadside assistance policy covers vehicle repairs and towing services. Basic Costco members with car insurance coverage through American Family may have to add on this coverage as a supplemental service for an extra cost.

Lifetime Renewability

This perk, only available to Costco executive members in certain states, allows you to renew your car insurance policy for as long as your Costco membership is active. If you’re a diehard Costco cardholder, this is a great perk.

Glass Repair Deductible Waiver

No deductible is required for a damaged windshield as long as it can be repaired rather than replaced. This offering is only available for Costco executive members.

Accident Travel Expense Coverage

Don’t fret if you’re in an accident far from home. This add-on reimburses drivers for hotel and food expenses if they get into an accident or their car breaks down while traveling.

See More: Compare Car Insurance

Costco Car Insurance Reputation

Is Costco car insurance good?

Costco car insurance ranks generally well for claims and customer satisfaction, financial strength, and affordability. The average monthly cost for a policy with Costco is $84.

Costco is powered by American Family, one of the biggest names in auto, renters, and life insurance. It has excellent financial stability, ensuring payouts will be fast after a claim. However, customer reviews are mixed, especially where customer service is concerned.

Costco Customer Service

Costco receives more customer service complaints than the average car insurance company. One possible reason is that Costco’s car insurance is being offered through a third-party provider, not Costco itself. Costco also does not have 24/7 live agent access like most car insurance providers, which could lead to negative reviews.

Costco Claims Filing Process

Reporting a claim with Costco is fairly easy. You can report online 24/7, or call a live agent between 8 a.m. and 11 p.m. EST Monday through Friday.

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Costco Insurance: Is it right for you?

Costco is an affordable option for car insurance, especially for people who already have executive-level memberships. There are many options out there, though, so be sure to compare quotes with Insurify to make sure you’re getting the best deal.

Frequently Asked Questions

  • Costco is a good option for anyone looking for discounts—you can find many of them with Costco’s policies, just like when you’re shopping at their stores.

  • The average monthly rate for Costco’s car insurance is $65. You may pay more or less, depending on your location and other factors.

  • Costco offers many discounts for motorists, from safe driving and good student discounts to incentives for storing your car in a garage.

  • The best way to find cheap car insurance is to compare quotes from multiple insurers. Insurify can help. Use this online tool to compare deals and make sure you find an affordable policy that works for you.

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  • Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.

Jennifer Pendell
Jennifer PendellInsurance Writer

Jennifer Pendell is a personal finance expert. She specializes in breaking down dense subjects to make them easier for consumers to understand, with a particular interest in homeowners, renters, and auto insurance concepts. She studied at the University of Iowa.