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Published: Jul 11, 2023 12 min read

Best for Costco Executive Members

Walking into the bulk wonderland that is Costco probably doesn't make you wonder, "Does Costco offer car insurance?" But if you browse the brochures while you wait in line to have your receipt scanned, you'll find that auto insurance is just one of Costco's extra offerings.

The warehouse is well-known for its discounts, which extend to its auto insurance options. Through a partnership with American Family Insurance, Costco members can get auto insurance under the brand CONNECT, with additional benefits available for Costco Executive Members.

Read on to learn more about Costco’s auto insurance discounts, customer satisfaction and more.

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Costco Auto Insurance Pros and Cons

  • Good for at-risk drivers
  • Many add-on options
  • Wide range of discounts
  • Doesn't cover rideshare drivers
  • Low customer satisfaction rating
  • Diminishing deductible not available

Pros explained

Good for at-risk drivers

One of the pros of Costco auto insurance is the lifetime renewability option for at-risk drivers who might be barred from other insurers’ policies. At-risk factors can include age, experience level, credit score, location and number or severity of traffic violations. Provided you meet all criteria, you can renew the auto insurance policy as long as you also maintain your Costco membership.

To be eligible, you must live in a state where the insurance is offered, though it excludes Maryland and Michigan residents from this benefit. You must also keep up with premium payments, keep the vehicle in good condition and provide all requested information to Costco. If you have any major traffic violations, you’ll be ineligible for this insurance.

Many add-on options

Besides liability, collision and comprehensive insurance, Costco auto insurance also has add-on options like:

  • Medical expense coverage for you and your passengers
  • Uninsured/underinsured coverage
  • Roadside assistance
  • Rental car coverage

These add-ons provide access to coverage not included in your Costco auto insurance policy, helping you mitigate the cost of additional expenses.

Wide range of discounts

Costco Insurance also has a wide range of discounts for its members, including a multi-car discount when insuring two or more vehicles and a multi-product discount when bundling an auto policy with other Costco products, such as home or umbrella insurance. A good driver discount (only available in California) awards motorists for safe driving, while full-time students with good grades who meet all criteria can qualify for a good student discount.

Costco’s premier safety discount is for households with no claims, accidents or traffic violations in the previous four years. You can also save money with proof of an approved defensive driving class or if you equip your vehicle with anti-lock brakes, anti-theft components, automatic seatbelts and other safety measures. Policyholders who have had auto insurance with Costco for an extended period may also get the company’s tenure discount.

Save even more cash if your college-aged child is only home on the weekends and holidays and doesn’t drive a car insured under your policy during school days. You can also get money off your policy if you store your vehicle inside your garage; however, this discount has limited availability.

Cons explained

Doesn't cover rideshare drivers

While some insurance companies do offer rideshare coverage, Costco isn't one of them. If you work for a company like Uber or Lyft, you'll need to look elsewhere for that insurance.

Low customer satisfaction rating

Customer reviews on the Better Business Bureau (BBB) give CONNECT 1.29 out of 5 stars and Costco 1.17 out of 5 stars. In both instances, most of the complaints seem to be about a lack of good customer service.

Diminishing deductible not available

The diminishing deductible option, which reduces a driver's deductible over time for safe driving or zero claims, is not included in Costco’s auto insurance plans.

Costco Auto Insurance Plans/Offerings

Which auto insurance coverage you choose will depend on your driving habits, your budget, your vehicle's value and other factors.

Liability coverage

Most U.S. states require drivers to have liability insurance. Costco's policy covers members if they get into a serious accident with another vehicle. Its liability policy also covers the other vehicle’s driver, any vehicle damages to their vehicle, any medical bills and costs related to being sued after an accident.

Collision and comprehensive coverage

Collision and comprehensive insurance are add-on options with Costco.

Collision covers the cost of your repairs if you collide with another vehicle in a driving accident and damage your car. It pays out without regard to who is at fault and can also be used to help with repairs if you hit an object on the road or a pothole or accidentally crash into a pole or concrete divider in a parking lot.

Comprehensive coverage pays for non-collision accidents. For instance, it may cover damages due to any of the following:

  • Break-in or vandalism
  • Shattered or cracked window or windshield
  • Bird, deer or other animal striking your car
  • Fire or explosion
  • Natural disasters
  • Something falling onto your car

Gap insurance

Costco offers Gap (Guaranteed Asset Protection) insurance that may cover your new car if it is totaled or badly damaged. It covers the difference between the amount you owe on your vehicle and what your car is currently worth.

Costco’s gap insurance policy offers policyholders coverage for a new car or replacement during the first year of having the vehicle insured.

PIP insurance

Having PIP, or personal injury protection, insurance is required for drivers who live in states with no-fault determination. In no-fault states, drivers involved in an accident claim compensation from their respective insurance companies, no matter who is at fault. PIP covers medical bills for personal injuries resulting from a car crash.

Costco members can opt to add PIP, which may help pay for a portion of any medical treatment, lost income and funeral expenses. It can cover you, your spouse or family members living in your household, other persons named on the policy, any passenger in your car at the time of the accident and any pedestrians involved in the accident.

Uninsured motorist coverage

Costco's uninsured and underinsured motorist insurance may pay for medical expenses incurred after an auto accident with a hit-and-run driver or a driver without required liability car insurance. It may also pay for lost income and funeral expenses.

This is not guaranteed for all accidents or states, so be sure to check your state requirements and read your full policy.

Rental reimbursement

Costco's car rental reimbursement will pay for a rental car while your vehicle is being repaired after being damaged in an accident covered under your insurance policy. This coverage is optional and allows you to choose the daily amount you want to be covered when you open the policy.

Costco Auto Insurance Pricing

How much is car insurance with Costco will depend on the make, model and age of the vehicle, the age and driving experience of any insured persons, driving records, where you live and more. However, you can reduce the premium if you qualify for one or more of the discounts Costco offers.

For example, you'll save money if you bundle your auto insurance with a home or umbrella policy. You can find further information for bundling on the Costco discount page.

You must enter your zip code, membership number and personal information to get a quote through the website, or you can contact them via phone.

Costco Auto Insurance Financial Stability

Costco Auto Insurance is provided through American Family Insurance, who underwrites CONNECT’s policies. A.M. Best gives American Family Insurance an A ('Excellent') rating for its financial strength.

Costco Auto Insurance Accessibility

If you've done your homework and are ready to sign up for Costco Auto Insurance, there are a few things you need to know about how to get it.


Costco has 583 U.S. and Puerto Rico locations, and car insurance is available to all members at those locations. It's not available at locations outside of the U.S.

If you don't already have a Costco membership, you can get a quote without one. However, you must have an active membership to get a policy and maintain that membership to be eligible for lifetime renewability.

Costco members are also entitled to receive a discount on the total costs of all car insurance policies they choose. These discounts are automatically applied to the person’s Costco membership number.

Contact information

Costco auto insurance customers have access to CONNECT’s team of customer service representatives. You can contact them for roadside assistance, questions about your policy and other concerns through the information listed below.

User experience

Customers of the Costco auto program can gain access to the American Family Insurance (AmFam) mobile app to:

  • File claims
  • Access proof of insurance
  • Track a claim’s status
  • Set up auto-pay
  • Schedule payments
  • Call for roadside assistance

CONNECT insurance has an 1.29 out of 5 stars score on the BBB based on 56 reviews, with poor customer service as the top complaint. Its BBB rating is an A+, which considers how long a company has been in business, how many complaints the company has received, how those complaints are resolved and more.

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Costco Auto Insurance Customer Satisfaction

CONNECT has a 1.11 on the NAIC’s Company Complaint Index, meaning it had slightly more complaints complaints as other auto insurers. According to the NAIC, the main complaints about CONNECT in 2021 were related to claims.

JD Power found that overall customer satisfaction concerning auto insurance pricing dropped in 2022. CONNECT ranks third on its customer satisfaction index for California, while American Family ranks third for the Central and Southwest regions of the U.S. and seventh for the North Central region. Neither entity makes the list for the remaining regions of the U.S.

Costco Auto Insurance FAQ

How much do you save with Costco Auto Insurance?

Because Costco offers so many discounts, you may be able to save a significant amount. However, coverage and savings are based on too many factors, like location, age, vehicle type and coverage type, to determine how much car insurance costs without getting a specific quote. According to the company, members can save approximately $587 during the first year of their Costco auto insurance policy.

Which insurance company does Costco use?

Costco's car insurance program works through CONNECT, underwritten by American Family Insurance. The policies offered by Costco and American Family include liability, comprehensive, collision, gap, personal injury protection plans and more.

Do you need a Costco membership for car insurance?

While you don't need a membership to get a quote for Costco's auto insurance, you do need it to purchase a policy.

How We Evaluated Costco Auto Insurance

We evaluated Costco car insurance using detailed comparisons to other car insurance companies. We looked at

  • Policy offerings
  • Discounts
  • Cost
  • Add-ons
  • Customer support
  • Customer reviews

Summary of Money's Costco Auto Insurance Review

If you’re looking for the best cheap car insurance, Costco car insurance may be a good coverage option for at-risk drivers and those who qualify for the many discounts. The add-on selection is also quite good. However, the company won't cover rideshare drivers, has a lot of complaints about its customer service and does not offer a diminishing deductible.

If you’re in the market for new insurance and want to know how to switch car insurance, it may be worth getting a quote if any of the pros appeal to you. You can also take a look at the best commercial auto insurance companies, research online, talk to friends and check social media for insights into which car insurance company might work best for you.