Costco Auto Insurance Review (2024)
According to our Costco auto insurance review, Costco does not technically sell auto insurance. However, Costco members can take advantage of discounts on homeowners, auto, and umbrella policies through CONNECT powered by American Family Insurance. Costco auto insurance savings average $595 in the first year.
Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
UPDATED: Jun 12, 2024
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.
UPDATED: Jun 12, 2024
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.
On This Page
Costco
Average monthly rate for good drivers:
N/AA.M. Best rating:
AComplaint level:
LowPros
- Benefits for Executive members
- Discounts on coverage
- Lifetime renewability options
Cons
- Rates higher than the national average
- Lack of availability in every state
- A high number of customer complaints
- Fees for membership
If you’re searching for the best car insurance company in your area and are a Costco member, you may want to consider Costco car insurance. Costco offers its members several car insurance options under the name CONNECT insurance.
Costco’s CONNECT insurance offers a variety of coverage options and discounts to its members. Unfortunately, some policies and auto insurance perks require an additional fee for nonmembers. Keep reading our Costco auto insurance review to learn more about the company.
What You Should Know About Ameriprise Auto & Home Insurance (Costco)
Costco’s CONNECT car insurance may be a good option for some people, but it depends on your needs. The company offers coverage options and opportunities for discounts that may appeal to some, but rates for insurance could be higher with CONNECT than with other companies.
Costco insurance reviews suggest the company needs to work on its claims process to improve customer satisfaction. Before purchasing a policy with Costco, you should find and compare rates from other auto insurance providers in your area to determine which company works best for you.
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Benefits for Costco Members
Costco members are entitled to additional discounts and perks regarding a CONNECT car insurance policy. These benefits include the following:
- Lifetime renewability
- Various discounts on coverage
- Glass repair deductible waiver
- Stolen key coverage
- Accident travel expense
While individuals can purchase car insurance through Costco without being members, the benefits listed above are only available to Costco Executive members. A Costco Executive membership costs $120 a year.
Ameriprise Auto & Home Insurance (Costco) Insurance Coverage Options
CONNECT auto insurance policies are offered through the American Family Insurance Company. CONNECT by American Family Insurance provides the following coverage options to Costco members:
- Bodily injury liability
- Property damage liability
- Collision coverage
- Comprehensive coverage
- Uninsured/underinsured motorist coverage
- Medical payments
- Personal injury protection
In addition to these common types of auto insurance coverage, CONNECT offers add-on options for additional protection. These options include the following:
- New car replacement. Costco’s insurance will pay to replace your vehicle if it is totaled in an accident.
- GAP coverage. This coverage pays the difference between what your car is worth and what you owe on the loan.
- Rental car reimbursement. This coverage reimburses any fees you pay for a necessary rental vehicle after a covered event.
- Roadside assistance. CONNECT’s roadside assistance covers towing, spare tire installation, lockout services, and more.
If you’re looking for a robust auto insurance plan and add-ons to help you maintain peace of mind while on the road, you may want to look into CONNECT’s options.
Ameriprise Auto & Home Insurance (Costco) Insurance Rates Breakdown
The amount someone will pay for Costco car insurance varies based on many factors. But the average CONNECT auto insurance policy costs $1,068 per year.
Costco Car Insurance for Teens
Teenagers pay the highest rates for car insurance in many cases. CONNECT car insurance costs anywhere from 27% to 35% more than the national average.
Costco’s rates are more than double USAA’s rates for the same demographic.
Young Adult Driver Rates with Costco
Costco car insurance is around 5% higher than the national average for young adults.
Age can truly affect what you are paying. Knowing the averages based on your age can help you find affordable coverage.
Costco Rates for Adults
Costco’s auto insurance quotes for adult drivers are around 7% higher than the national average. Adult rates are double USAA’s rates for the same demographic.
Costco Rates for Senior Drivers
Senior drivers pay 6% to 9% more with CONNECT than the national average.
Costco’s rates are $600 higher than GEICO’s rates for similar coverage for seniors.
Costco Car Insurance With a Speeding Ticket
If you have a speeding ticket on your driving record, you can expect to pay higher-than-average rates for car insurance. For example, Costco’s rates for individuals with one speeding ticket on their record are around $500 more per year than the national average.
State Farm offers rates for a similar demographic that is nearly $1,000 cheaper per year. Learn more in our State Farm auto insurance review.
Costco Car Insurance After an Accident
CONNECT’s insurance rates are nearly 30% higher than the national average for people who have an accident on their driving record.
Still, rates with AAA and Allstate are more expensive than those with Costco.
Costco Rates with a DUI
Rates for auto insurance after a DUI are almost the same with Costco as the national average. Still, they are nearly $1,000 more per year than State Farm’s rates for coverage after a DUI conviction.
DUI convictions can lead to hefty cost increases when it comes to your auto insurance. Checking out multiple companies’ rates could save you a bundle.
Costco Rates for People with Poor Credit
A poor credit score can impact your rates, as insurance companies consider people with bad credit riskier than those with a strong credit score.
Company | Good Credit | Fair Credit | Bad Credit |
---|---|---|---|
AAA | $135 | $165 | $245 |
Allstate | $166 | $197 | $296 |
American Family | $116 | $136 | $203 |
Farmers | $140 | $161 | $269 |
Geico | $82 | $100 | $148 |
Hartford | $120 | $155 | $230 |
Liberty Mutual | $177 | $226 | $355 |
Nationwide | $120 | $133 | $166 |
Progressive | $109 | $138 | $206 |
State Farm | $91 | $118 | $200 |
Travelers | $107 | $128 | $194 |
U.S. Average | $123 | $148 | $226 |
Costco’s average rates for people with poor credit scores are around 7% higher than the national average.
Minimum Coverage with Costco
Costco’s rates for liability-only policies are around 22% higher than the national average.
Insurance Company | Rates |
---|---|
Allstate | $61 |
American Family | $44 |
Farmers | $53 |
Geico | $30 |
Liberty Mutual | $67 |
Nationwide | $44 |
Progressive | $39 |
State Farm | $33 |
Travelers | $38 |
USAA | $22 |
U.S. Average | $45 |
CONNECT car insurance policyholders pay nearly $700 more per year than GEICO customers for the same minimum coverage.
Full Coverage with Costco
Full coverage rates with CONNECT car insurance are 27% higher than the national average.
Insurance Company | Monthly Rates |
---|---|
Allstate | $160 |
American Family | $117 |
Auto-Owners | $87 |
Farmers | $87 |
Geico | $80 |
Liberty Mutual | $174 |
Nationwide | $115 |
Progressive | $105 |
State Farm | $86 |
Travelers | $99 |
USAA | $59 |
U.S. Average | $119 |
Still, Allstate and AAA have higher rates for full coverage policies.
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Ameriprise Auto & Home Insurance (Costco) Discounts Available
Costco offers a variety of discounts to its CONNECT policyholders, though many discounts are only available to Executive members. The company’s discount options include the following:
- Premier safety discount
- Good driver discount
- Defensive driver discount
- Tenure discount
- Vehicle safety features discount
- Garaging discount
- Good student discount
- Multi-car discount
- Multi-policy discount
Some discounts can help individuals save as much as 25% on their insurance premiums. If you qualify for a discount on CONNECT car insurance, speak to a company representative to determine whether you’re eligible.
Frequently Asked Questions
What other types of insurance does Costco offer?
In addition to car insurance, Costco offers the following options for insurance coverage:
- Condo
- Renters
- Umbrella
- All-terrain
- Motorcycle
- Boat
- RV
- Classic car
- Flood
- Rental property
What is Costco Auto Insurance?
Costco Auto Insurance is an insurance program offered by Costco Wholesale Corporation in partnership with a licensed insurance provider. It aims to provide members with affordable and reliable auto insurance coverage.
How can I get Costco Auto Insurance?
To obtain Costco Auto Insurance, you must be a Costco member. You can apply for insurance coverage by visiting the official Costco website or by contacting their designated insurance provider directly.
Is Costco Auto Insurance available in all states?
No, Costco Auto Insurance is not available in all states. The coverage options may vary depending on the state you reside in. It is recommended to check with Costco or their insurance provider to determine if the program is available in your area.
What types of coverage does Costco Auto Insurance offer?
Costco Auto Insurance provides various types of coverage, including liability coverage, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and more. The specific coverage options may vary depending on your location and the insurance provider.
Are Costco Auto Insurance rates competitive?
Costco Auto Insurance aims to offer competitive rates to its members. However, it’s important to compare rates from multiple insurance providers to ensure you’re getting the best deal for your specific needs.
Can I bundle my auto insurance with other Costco services?
Yes, Costco offers the option to bundle your auto insurance with other services such as homeowners insurance, renters insurance, and more. Bundling insurance policies can often lead to discounts and added convenience.
What is the claims process for Costco Auto Insurance?
In the event of an accident or other covered incident, you should contact Costco Auto Insurance’s designated claims department or the insurance provider directly. They will guide you through the claims process, which typically involves reporting the incident, providing necessary documentation, and working with an adjuster to assess the damages.
Can I manage my Costco Auto Insurance policy online?
Yes, Costco Auto Insurance offers online policy management tools. Through their website or mobile app, you can view your policy details, make payments, request changes, and access other relevant information related to your insurance coverage.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
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.
jheoaustin
F***** BS cheater, Stay Away
Taylor_Applegate
Horrible costumer serveice
Rob_Thomas
Ridiculous company, stay away!!
Jfiedler
No explanation of premium increase
KingSIGGA
Connect is the best!
mrtoddler
Ameriprise has great customer service.
Money2020
Ameriprise insurance
miche
good company
tvlngman
No Rental Car or Loaner Car Coverage!
ambidesign
Ameriprise Auto