Costco auto insurance evaluation 2026

Overview of Costco Auto Insurance

Costco collaborates with American Family Insurance to provide its members with special rates on auto insurance. Those who hold Executive Memberships enjoy additional advantages, such as complimentary roadside assistance and guaranteed policy renewals for life. However, the insurance coverage itself remains fairly basic, and there is currently no dedicated mobile app for policy management.

Recent Changes in Costco’s Insurance Partnership

Note: Costco’s previous insurance partner, CONNECT, has rebranded as American Family Insurance. The company states this change is intended to improve the customer experience while maintaining the same level of service, value, and coverage.

Advantages and Disadvantages of Costco Auto Insurance

Benefits

• Includes accident forgiveness and a decreasing deductible feature
• Offers gap insurance and coverage for new car replacement
• Executive Members receive exclusive benefits

Drawbacks

• Lacks a mobile application
• Does not provide rideshare coverage
• No usage-based insurance options available

Key Features of Costco Auto Insurance

Costco’s auto insurance is accessible in most states and covers standard protections such as liability, comprehensive, and collision insurance.

One distinguishing factor is the integration with Costco membership, which can unlock exclusive discounts. Executive Members may also qualify for additional perks not available to non-members.

Cost and Customer Feedback

• Estimated monthly premium for full coverage: Pricing details for CONNECT are not currently available from Savvy Insurance Solutions, but American Family rates are provided below. For the most accurate pricing, request a personalized quote.
• J.D. Power satisfaction by region: CONNECT by American Family performed above average in California, while American Family itself scored well in three out of five regions.
• J.D. Power claims satisfaction: CONNECT was not included in the claims satisfaction study; American Family scored slightly below the national average.

Customer Service Experience

When reaching out to CONNECT’s customer support for this review, the wait time was minimal, and a sales representative was available within a minute.

Coverage Options

• Number of coverage types: 10

Available Discounts

• Number of discounts: 9

Types of Coverage Offered by Costco

Costco’s auto insurance includes the following nine coverage options:

• Comprehensive coverage
• Collision coverage
• Rental car insurance
• Bodily injury liability
• Property damage liability
• Uninsured motorist protection
• Medical payments coverage
• Personal injury protection (PIP)
• Roadside assistance and towing
• New car replacement coverage

Accident Forgiveness

Costco’s auto insurance provides accident forgiveness if you maintain a clean driving record for over three years.

Emergency Roadside Assistance

Emergency roadside assistance, including towing, is available as an optional feature or is complimentary for Executive Members. This service is available around the clock and covers towing, flat tire changes, jump-starts, lockouts, and fuel delivery (note: fuel cost is not covered).

Cost of Costco Auto Insurance

According to Yahoo Finance, American Family Insurance, which underwrites Costco’s policies, offers some of the lowest average premiums for both full and basic coverage among major insurers.

However, previous research indicates that CONNECT’s rates may differ from American Family’s. The most reliable way to determine your rate is to request a quote and compare it with other providers.

For most drivers, full coverage is recommended to minimize out-of-pocket expenses after an accident.

Average Premiums for Full Coverage

American Family offers the lowest average monthly premium among the insurers analyzed, with full coverage policies averaging $151 per month.

Average Premiums for Basic Coverage

For liability-only coverage, American Family’s average monthly cost is $89, making it the most affordable among major insurers.

Discounts Available to Costco Members

Costco members may be eligible for the following discounts:

1. Membership discount: Simply being a Costco member can qualify you for savings.
2. Good driver discount: Available in California for drivers with clean records.
3. Premier safety discount: Households with no tickets, claims, or accidents in the past four years may save more.
4. Defensive driver discount: Completing a state-approved driving course can earn you a discount.
5. Safety feature discount: Vehicles equipped with safety technologies like airbags may qualify for reduced premiums.
6. Garaging discount: Parking your car in a garage overnight can lower your rate.
7. Good student discount: Full-time students with strong academic performance may receive a discount.
8. Student away discount: If your child attends college over 100 miles from home without a car, you may pay less to keep them on your policy.
9. Multi-vehicle discount: Insuring multiple vehicles can reduce the cost per car.

How to Submit a Claim with Costco Auto Insurance

Claims for Costco auto insurance are processed by American Family Insurance. You can submit a claim online at any time or call 1-800-872-5246. Here’s how to proceed:

1. Collect necessary information: Prepare your policy number, vehicle details, incident information, police report (if applicable), and the other driver’s insurance details.
2. File online: The quickest way to start your claim is by logging into your account. You can report everything from windshield repairs to theft and collisions online.
3. Select a repair shop: You can choose any repair facility, or use American Family’s recommended shop search tool.
4. Track your claim: After submission, you’ll receive updates through your online account or by phone, depending on your preference.

If you prefer speaking to a representative, you can call the claims line directly. American Family’s customer service is available Monday through Saturday.

Claim Submission Timeline

It’s best to file a claim as soon as you are safe, especially if your vehicle cannot be driven.

Claim Processing Speed

American Family does not specify an exact timeline for claim payouts. Typically, a claims representative will contact you within one business day after you file. The time to receive payment depends on the complexity of your claim and whether your car is repairable or a total loss.

Mobile App Availability

There is no dedicated mobile app for Costco auto insurance. While CONNECT has transitioned to American Family Insurance, the MyAmFam app currently does not support CONNECT customers. For now, policyholders should manage their Costco auto insurance through the American Family website.

Frequently Asked Questions about Costco Auto Insurance

Is Costco auto insurance a good choice?

Costco auto insurance is most beneficial for Executive Members, who receive perks like roadside assistance and lifetime renewability. However, the coverage is more limited compared to some other insurers, and there is no mobile app or extensive add-on options.

Is Costco insurance less expensive than Progressive?

It’s difficult to determine without comparing quotes directly. Progressive is generally more expensive but offers more customization options. Costco’s plans are simpler, but member discounts may make them more affordable.

How does Costco auto insurance compare to other providers?

Costco’s auto insurance is a straightforward option with fewer extras, such as usage-based discounts or a mobile app. If you’re a Costco member seeking basic coverage and reliable service, it could be a suitable choice.

Is Costco insurance cheaper than GEICO?

Possibly. GEICO typically falls in the middle range for pricing and offers more discounts than most competitors. However, if you’re looking for basic coverage and already have a Costco membership, Costco’s insurance could be a cost-effective option.

Article edited by Tim Manni and Jamie Young.

How We Evaluated Auto Insurance Providers

Rating Criteria

Our analysis included 20 auto insurance plans, with each provider scored based on several weighted factors:

• Coverage options (20%): Assessed for features like new car replacement, GAP insurance, accident forgiveness, and diminishing deductible.
• Average cost (40%): Calculated using Savvy Insurance Solutions’ proprietary models, based on millions of data points from major insurers. The average policyholder is defined as a 48-year-old with a 13-year-old vehicle in an average-income area.
• Customer satisfaction (20%): Based on complaint data from the National Association of Insurance Commissioners (NAIC) and CRASH Network scores for repair quality and service.
• Discounts (10%): Points awarded for each type of discount offered.
• App ratings (10%): Average ratings from the Apple App Store and Google Play Store at the time of publication.

Pricing Data Methodology

Unless otherwise noted, pricing estimates are provided by Savvy Insurance Solutions, which operates a nationwide insurance marketplace. Estimates are generated using in-house machine learning models and data from over 2 million insurance accounts and tens of thousands of policies. Factors considered include:

• Policyholder’s age
• Number of vehicles insured
• ZIP code
• Vehicle age
• Insurance provider
• And other relevant variables

These models allow for highly personalized estimates based on various user attributes, such as age, location, and vehicle type.

Definitions

• Full coverage car insurance: Includes comprehensive, collision, and liability protection.
• Average policyholder: A 48-year-old driver with a 13-year-old car living in an average-income ZIP code.
• Senior driver: A 70-year-old policyholder with full coverage.
• Good driver: Any driver with no tickets, accidents, or DUIs, regardless of coverage or vehicle type.