# Costco Auto Insurance: What It Covers, Cost, and Is It Worth It?
Costco doesn't write its own auto insurance policies — but as a Costco member, you can access CONNECT, powered by American Family Insurance, which offers discounted rates and a range of coverage options through the Costco Auto Insurance Program. For many members, the savings are meaningful: Costco's partnership typically delivers rates 10–15% below standard American Family quotes, and the program consistently earns high member satisfaction scores.
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How Costco Auto Insurance Works#
Costco acts as a referral partner. When you get a quote through the Costco Auto Insurance Program, you're actually purchasing a policy from CONNECT, powered by American Family Insurance (AmFam). AmFam underwrites the policy, handles claims, and provides customer service.
The Costco member discount is built into the pricing model — you don't have to negotiate or apply a code. Simply visit the Costco Auto Insurance portal or call to get a quote, verify your membership, and the discounted rate is automatically applied.
Key facts:
- Available in most U.S. states (not all — check availability in your state)
- Policies are underwritten by American Family Insurance
- Costco membership is required to qualify
- You manage your policy through CONNECT's portal, not through Costco.com
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What Coverage Does Costco Auto Insurance Offer?#
CONNECT/American Family through Costco offers standard auto coverage options:
| Coverage Type | What It Covers |
|---|---|
| Liability | Bodily injury and property damage to others when you're at fault |
| Collision | Damage to your car from an accident, regardless of fault |
| Comprehensive | Theft, weather, fire, vandalism, and other non-collision damage |
| Uninsured/Underinsured Motorist | Covers you if the at-fault driver has no or inadequate insurance |
| Medical Payments (MedPay) | Medical expenses for you and passengers, regardless of fault |
| Personal Injury Protection (PIP) | Broader medical + lost wages coverage (required in no-fault states) |
| Rental Reimbursement | Pays for a rental car while yours is being repaired |
| Roadside Assistance | Towing, flat tire, jump starts, lockout service |
Optional Add-Ons#
- Loan/Lease Gap Coverage — pays the difference between your car's actual cash value and the remaining loan balance if your car is totaled
- New Car Replacement — replaces your car with a new model (same make/model/year) if totaled within the first year or two
- Accident Forgiveness — prevents your premium from going up after your first at-fault accident
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How Much Does Costco Auto Insurance Cost?#
Costco auto insurance rates depend on the same factors as any insurer: your age, driving record, location, vehicle, credit score (in states that allow it), and coverage selections. The Costco member discount is layered on top of AmFam's base rates.
Typical savings vs. non-member AmFam quotes: 10–15%
Sample annual premiums (estimates, varies widely by state and driver profile):
| Driver Profile | Estimated Annual Premium |
|---|---|
| Single, 30s, clean record, sedan | $900–$1,400 |
| Married couple, 40s, two cars | $1,600–$2,400 |
| Young driver (25), one minor violation | $1,800–$2,800 |
| Senior driver (65+), clean record | $1,100–$1,700 |
These are illustrative ranges. Get a quote directly to see your actual rate — it takes about 5 minutes online.
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Is Costco Auto Insurance Good?#
What Members Like#
- Discounted rates: The member discount is real and automatic
- Easy bundling: AmFam offers home, renters, and life insurance — bundling all through CONNECT can add another 5–10% discount
- J.D. Power scores: American Family regularly scores above industry average for claims satisfaction
- AM Best rating: A (Excellent) financial strength rating — solid for claims-paying ability
What to Watch Out For#
- Not available in all states — AmFam isn't licensed everywhere; check availability first
- You deal with AmFam, not Costco — for claims or billing issues, you contact CONNECT/AmFam directly; Costco has no role in service
- Rates can still vary — the member discount helps, but in high-cost states or for high-risk drivers, CONNECT may still not be the cheapest option
How It Compares to Major Insurers#
| Insurer | Notable Strength | AM Best Rating |
|---|---|---|
| CONNECT (Costco/AmFam) | Member discount, bundling | A (Excellent) |
| State Farm | Largest insurer, local agents | A++ (Superior) |
| GEICO | Lowest base rates, easy online | A++ (Superior) |
| Progressive | Best for high-risk drivers | A+ (Superior) |
| Farmers | Strong agent network, customize coverage | A (Excellent) |
→ Compare insurance options: Farmers vs State Farm | GEICO vs Mercury Insurance
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How to Get a Costco Auto Insurance Quote#
- Go to the Costco Auto Insurance page on Costco.com (or search "Costco auto insurance")
- Verify your Costco membership (you'll enter your membership number)
- Enter your vehicle information (VIN, year, make, model)
- Enter driver information (age, driving record, current insurer)
- Select your coverage preferences and see your discounted rate
- Compare with 2–3 other quotes from GEICO, State Farm, or Progressive before deciding
The process takes 10–15 minutes. You can also call the CONNECT/AmFam dedicated Costco line if you prefer speaking with an agent.
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Frequently Asked Questions#
Does Costco offer auto insurance?
Yes — Costco partners with CONNECT, powered by American Family Insurance, to offer auto insurance to members at discounted rates. Costco itself doesn't write the policies; AmFam is the underwriter.
Is Costco auto insurance good?
It's competitive for many members. American Family has solid J.D. Power claims ratings and an A (Excellent) AM Best financial strength rating. The Costco member discount (typically 10–15%) makes rates more attractive than buying AmFam directly.
How do I file a claim with Costco auto insurance?
Claims go directly through CONNECT/American Family, not through Costco. You can file online at the CONNECT portal, through the AmFam mobile app, or by calling the claims hotline available 24/7.
Is Costco auto insurance available in my state?
American Family isn't licensed in all 50 states. States where AmFam operates include most of the Midwest and West. Check the Costco Auto Insurance site directly for current state availability.
Can I bundle Costco auto insurance with home insurance?
Yes. CONNECT/American Family offers home and renters insurance through the same Costco program. Bundling auto + home typically adds a 5–10% multi-policy discount.
Do I need to be a Costco member to get this insurance?
Yes. The discounted CONNECT rates are exclusive to Costco members. If you let your membership lapse, your existing policy remains in force, but you'd pay standard AmFam rates at renewal.
How does Costco auto insurance compare to GEICO?
GEICO typically has lower base rates for drivers with clean records and simple coverage needs. CONNECT/AmFam may be more competitive for drivers who bundle with home insurance or have specific coverage needs AmFam handles well (like gap coverage on financed vehicles). Always compare both quotes.
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The Bottom Line#
Costco auto insurance through CONNECT (AmFam) is a legitimate, often competitive option for Costco members. The member discount is automatic, AmFam has strong financial ratings, and bundling with home insurance can push savings further. It's not always the cheapest option — GEICO and Progressive may win on base rates in some markets — but it's worth getting a quote, especially if you're already a Costco member and want the convenience of a relationship with one insurer.
→ Compare car insurance options: Farmers Insurance vs State Farm
→ See wholesale club comparisons: Costco vs Sam's Club
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