Costco Auto Insurance Review (2022)

Costco offers its members a long list of perks that keep people walking through its doors. One of those perks that many people don’t know about is auto insurance. Costco auto insurance quotes can save you money, whether you want comprehensive or liability-only. The warehouse offers additional perks like free roadside assistance.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 5, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to Remember

  • While you can buy insurance at Costco, the insurance is actually written by American Family under the brand name CONNECT
  • CONNECT receives more complaints than the national average for a company its size, but its rates tend to be lower
  • American Family is more lenient with bad driving records, making Costco insurance a great option
  • There are two tiers of Costco membership, both of which get a discount on insurance, but only Executive members get free perks

Costco has exploded in the American grocery and retail scene since it first rolled up its doors in 1983. Many Americans consider shopping at Costco more of an experience than a chore, and the warehouse has inspired excitement in more than one customer.

When you join Costco, the list of perks you have at your fingertips is almost too long to write down. However, there is one perk that many members don’t realize they have access to, and that’s cheap auto insurance.

Customers have been getting their insurance needs met by the warehouse for almost 20 years. As with everything else under its roof, you can save a great deal of money by getting your insurance through the warehouse.

If affordable Costco auto insurance has piqued your interest, you owe it to yourself to compare quotes with all the major insurance companies. If you’re ready to see what quotes might look like for you, enter your ZIP code into our free tool today.

Costco Auto Insurance

When you buy insurance through Costco, you’re really buying insurance from CONNECT. CONNECT is backed by its parent company, American Family.

Getting a Costco auto insurance quote as a member means you’ll at least qualify for the membership discount. Another benefit of getting your insurance through American Family is that prices tend to be a little cheaper than the average rate.

As a Costco member, you might also be eligible for a few free perks.

When you look at Costco auto insurance reviews, you’ll notice a few issues. For one, American Family receives a higher-than-usual number of complaints for a company its size.

Is American Family good for car insurance?

Despite less-than-stellar complaint numbers, American Family is still considered a good insurance company. In fact, it’s one of the 10 biggest auto insurance companies in the nation.

It also has strong ratings from insurance review companies like the Better Business Bureau and J.D. Power. It currently has an A rating for financial strength with A.M. Best.

American Family offers standard coverage for your car: liability, collision, and comprehensive. However, there’s also a long list of additional insurance you can purchase for your policy:

  • Roadside assistance
  • Personal injury protection (PIP)
  • Medical payments (MedPay)
  • Underinsured/uninsured motorist
  • GAP insurance
  • Accidental death and dismemberment
  • Accident forgiveness
  • Rental reimbursement

While it may receive more complaints than usual, American Family wins back points for its lengthy insurance discounts list. You can save a lot of money by working with an agent to see which of the following you’re eligible for.

  • Multi-car
  • Good driver
  • Bundling
  • KnowYourDrive app, which monitors your driving behavior
  • Customer loyalty
  • Safety equipment, like airbags or anti-lock brakes
  • Teen Safe Driver program
  • Good student
  • Volunteer work for drivers under 25
  • Low mileage (7,500 miles per year or less)
  • Away at school
  • Generational, for teens with a parent or guardian who is an American Family customer
  • “Steer Into Savings” for switching from another insurance company
  • “Early Bird” for changing to American Family at least seven days before your current policy ends
  • Paperless, automatic payments, and paying in full
  • Defensive driving course, for those 55 and older

American Family has insurance for anyone that needs it, from new drivers to senior citizens. Even better for Costco members, you can take advantage of all these discounts as well as your membership discount.

If you’re in the market, you can purchase homeowners, life, motorcycle, ATV, RV, and renters insurance from American Family. If you’re interested, speak with an agent to see how much American Family’s bundling discount can save you.

How much do Costco auto insurance rates cost?

American Family might not be the cheapest option out there, but it does offer very competitive prices. Mixed with all the perks you can buy, American Family’s insurance is worth the cost.

When you go to buy insurance, your rate will depend on a variety of factors unique to you. However, you can get an idea of what your insurance will cost by looking at some typical rates.

First, you can consider prices by age and gender:

 17 female17 male25 female25 male60 female60 male
American Family$336$373$138$146$106$107
National average$376$428$123$129$95$98
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Some factors are obvious, but others that affect your rates might not be so easy to guess. One of those factors is your credit score.

American Family$120$140$143
National average $109$130$185
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While evaluating your credit score while setting your rate isn’t legal in every state, American Family will look at it in states where it’s allowed. Your credit score represents your ability to pay your bills on time. If you have a low credit score, insurance companies will consider you more of a risk to insure.

The good news is that American Family isn’t as uptight about credit scores as some other companies are.

Finally, insurance companies heavily weigh your driving record.

 Clean recordSpeeding ticketOne accidentDUI
American Family$120$135$138$143
National average$110$133$156$176
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Even a single speeding ticket can make your rates go up. American Family runs a little higher than the national average for speeding tickets, but it’s much more forgiving if you have a DUI on your record.

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American Family Insurance for Costco Members

Although the warehouse doesn’t list how much the discount is on its website, you will save money for being a Costco member.

Costco does specify some differences between membership choices. There are two types of membership you can purchase from Costco. The first is the Gold Star membership. Gold Star is the basic Costco membership and will cost you $60 a year.

All Gold Star members get a discount on their American Family insurance plan.

The other type of membership is Costco’s Executive card, which costs $120 a year. Executive membership comes with some appealing perks, including an annual award of 2% of everything you spent in the warehouse the previous year.

In terms of insurance, the Executive membership gets an insurance discount the same as Gold Star members. You also get a lifetime guarantee of insurance, meaning American Family won’t cancel your coverage unless there’s a severe infraction.

Of course, your rates will go up if you get into accidents, but you won’t have to worry about losing your insurance.

As an Executive member, you also get roadside assistance added to your policy for free. You might also get a $100 Costco gift card when you sign up for a new policy.

However, there are a few exceptions to Costco insurance. You can’t buy Costco auto insurance if you live in Tennessee, and residents of Massachusetts have to be Executive members to buy insurance.

If you have questions about your insurance options, the Costco auto insurance phone number is (888) 239-9953.

Costco Member Auto Insurance Equals Real Savings

From liability to comprehensive, Costco offers its members great savings on auto insurance. Through its brand name CONNECT, American Family can help Costco members get on the road for less.

After you get quotes for Costco auto insurance, you should still shop around. Enter your ZIP code into our free tool when you’re ready to see what quotes might look like for you.

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