DOES COSTCO HAVE AUTO INSURANCE

If you’re a Costco member, you know the feeling: the thrill of the hunt for a great deal, the satisfaction of a cart full of bulk groceries, and the obligatory stop for a cheap, delicious lunch on your way out. Costco Wholesale has built a legendary reputation on delivering exceptional value to its members. But the value proposition extends far beyond the warehouse aisles. From travel packages to home insurance and mortgage services, Costco leverages its buying power to negotiate exclusive deals for its members.

So, it’s a natural question to ask: Does Costco have auto insurance? Many members assume that if Costco puts its name on a service, it must be a great deal. In this detailed guide, we will answer that question definitively and explore everything you need to know about securing auto insurance through Costco. We’ll dive into the partner company, the potential benefits, the sign-up process, and how it stacks up against the competition. By the end of this article, you'll know exactly if Costco car insurance is the right choice for your wallet and your vehicle.

A Quick Overview of Costco’s Service Ecosystem

Before we dive into auto insurance, it's helpful to understand the broader context. Costco is, at its core, a membership-based warehouse club. The membership fee is your ticket to a world of wholesale pricing on a vast array of goods. However, a significant part of the Costco value proposition is its suite of member-only services.

These services are typically not provided directly by Costco but through carefully vetted partners. Costco uses its massive membership base as leverage to secure preferential rates and service terms that individuals might not be able to get on their own. This model applies to:

• Costco Travel: Discounted vacation packages, rental cars, and cruises.

• Costco Home Insurance: Provided through a partnership with CONNECT.

• Costco Mortgage and Refinancing Services.

• Business Services: Like credit card processing and payroll.

This partnership model is key to understanding how Costco auto insurance works.

Does Costco Offer Auto Insurance? The Direct Answer

Yes, Costco provides access to auto insurance for its members. However, and this is a crucial distinction, Costco does not underwrite or directly sell auto insurance policies itself.

Instead, Costco has a long-standing partnership with a well-established insurance provider to offer a program exclusively for its members. For many years, this was through Ameriprise Auto & Home Insurance. However, as of 2022, the program transitioned to a new partner: CONNECT by American Family Insurance.

This means that when you get auto insurance through Costco, you are actually purchasing a policy from CONNECT, which is backed by the financial strength and reliability of American Family Insurance. The "Costco" aspect comes from the member-exclusive discounts, dedicated service, and the trust associated with the Costco brand.

About CONNECT by American Family Insurance: Costco’s Partner

Understanding who CONNECT is will help you feel more confident about the insurance product.

CONNECT is a platform and insurance agency powered by American Family Insurance, a company with over 90 years of history in the industry. American Family Insurance is a reputable provider with strong financial ratings, indicating its ability to pay out claims.

The CONNECT platform is designed to offer a streamlined, modern insurance experience, often with a focus on competitive pricing and digital management. For Costco members, this partnership means:

• Exclusive Group Rates: CONNECT offers pricing that is generally only available to Costco members.

• Dedicated Support: There is often a customer service line dedicated specifically to Costco members.

• Brand Alignment: Costco is known for value and customer satisfaction, and they have chosen a partner they believe aligns with those values.

Top 5 Benefits of Getting Auto Insurance Through Costco

Why should a Costco member consider this option over going directly to GEICO, State Farm, or Progressive? The benefits are compelling.

1. Member-Exclusive Discounts and Significant Savings

This is the biggest draw. The primary reason to get your Costco car insurance through CONNECT is the potential for savings. The program is designed to offer competitive rates, and members often report saving hundreds of dollars per year compared to their previous insurers. The group buying power of Costco’s membership base is your key to lower premiums.

2. Exceptional Customer Service and Claims Process

Costco is famous for its customer service, and they expect the same from their partners. The CONNECT program for Costco members typically includes access to a dedicated claims team and customer service representatives who are familiar with the program. American Family Insurance also consistently receives respectable ratings for its claims handling process.

3. Bundling Options for Home and Auto

One of the easiest ways to save on insurance is by bundling your policies. If you are a homeowner or renter, you can bundle your Costco auto insurance with a home, condo, or renters insurance policy from CONNECT. This multi-policy discount can lead to even greater overall savings, simplifying your insurance portfolio and your bills.

4. Rewards for Safe Driving and Loyalty

Like many modern insurers, CONNECT offers potential discounts for safe driving habits. They may offer programs that track your driving (with your permission) and reward you for low mileage and safe practices. Additionally, loyal members who stay with the program may be eligible for further discounts over time.

5. Flexibility and Customizable Coverage

A Costco car insurance policy is not a one-size-fits-all product. You can customize your coverage to meet your specific needs. This includes choosing your deductible amounts, levels of liability coverage, and adding optional protections like roadside assistance and rental car reimbursement. You get the group discount without sacrificing the ability to tailor the policy to your life.

How to Sign Up for Costco Auto Insurance: A Step-by-Step Guide

Getting a quote is straightforward and can be done in a few ways. Here’s how to get started.

Step 1: Verify Your Costco Membership

You will need an active Costco membership (Gold Star, Executive, or Business) to apply for and maintain the insurance policy. Your membership number will be required during the quoting process.

Step 2: Gather Your Information

To get an accurate quote, have the following details ready:

• Personal Information: Driver's license numbers for all household drivers.

• Vehicle Information: Make, model, year, and Vehicle Identification Number (VIN) for all cars to be insured.

• Current Coverage Details: If you have an existing policy, it’s helpful to have it on hand to compare coverage levels apples-to-apples.

• Driving History: Information about any recent accidents, tickets, or claims.

Step 3: Get Your Quote

You have three main options:

• Online (Recommended): The fastest way is to visit the dedicated Costco Insurance website (usually www.CostcoInsurance.com), which will redirect you to the CONNECT portal. You can enter your information and get a quote in minutes.

• By Phone: You can call the dedicated Costco member insurance line to speak with a representative who can guide you through the quote process.

• In-Warehouse: Some Costco locations have an insurance kiosk where you can speak with a representative in person.

Step 4: Review and Purchase

Once you receive your quote, review the coverage details carefully. Make sure the liability limits, deductibles, and other terms match what you're looking for. If you're satisfied, you can often bind the coverage immediately online or over the phone.

Types of Auto Insurance Coverage Offered Through CONNECT

A Costco auto insurance policy through CONNECT offers the same standard types of coverage you’d find with any major insurer. It's important to understand what each one does.

Liability Coverage (Bodily Injury & Property Damage)

This is required by law in most states. It pays for injuries you cause to others and damage you cause to their property in an accident you are at fault for.

Collision Coverage

This optional coverage pays for damage to your own car resulting from a collision with another vehicle or object, regardless of who is at fault.

Comprehensive Coverage

This optional coverage pays for damage to your car from non-collision events like theft, vandalism, fire, hail, or hitting an animal.

Uninsured/Underinsured Motorist Coverage

This protects you if you're in an accident caused by a driver who has no insurance or insufficient insurance to cover your damages.

Additional Coverages and Add-Ons

• Roadside Assistance: A popular add-on that provides help for towing, jump-starts, flat tires, and lockouts.

• Rental Reimbursement: Covers the cost of a rental car while your vehicle is being repaired after a covered claim.

• Gap Insurance: Important for new cars; it covers the "gap" between what you owe on your loan/lease and the car's actual cash value if it's totaled.

Pricing and Savings: How Does Costco Auto Insurance Compare?

The million-dollar question: Is it really cheaper? While individual rates vary dramatically based on your driving record, location, vehicle, and credit score, the Costco auto insurance program is consistently positioned as a competitively priced option.

Compared to major competitors like GEICO, State Farm, and Allstate, many members find that CONNECT offers lower rates for comparable coverage. The member-only discount is the key differentiator. It's not uncommon to see reports of members saving 10-25% compared to their previous provider.

Tips to Maximize Your Savings:

• Bundle Policies: As mentioned, combining auto and home insurance is your biggest lever for savings.

• Maintain a Clean Driving Record: Safe drivers get the best rates.

• Increase Your Deductible: Opting for a higher deductible can lower your premium, but make sure you can afford the deductible if you need to make a claim.

• Ask About All Discounts: Inquire about discounts for anti-theft devices, good student drivers, low annual mileage, and payment in full.

Costco Auto Insurance Reviews and Customer Satisfaction

What are real people saying? Overall, customer satisfaction with the Costco auto insurance program is generally positive, especially regarding value for money.

Pros Based on Customer Feedback:

• Competitive Pricing: This is the most frequently cited advantage.

• Easy Claims Process: Many reviewers report a smooth and hassle-free claims experience.

• Helpful Customer Service: The dedicated Costco member support line often receives praise.

Cons and Considerations:

• Not Always the Cheapest: For some drivers (e.g., those with a less-than-perfect record), other companies might offer a lower rate. This highlights the importance of shopping around.

• Availability: The program is not available in every state. You must check if it's offered in your location.

Independent review sites like J.D. Power often give American Family Insurance (CONNECT's underwriter) average to above-average ratings for claims satisfaction and overall experience.

Alternatives to Costco Auto Insurance

While the Costco auto insurance program is excellent, it's always wise to shop around. Other popular options include:

• GEICO: Known for competitive pricing and a strong digital experience.

• State Farm: A giant in the industry with a massive network of local agents.

• Progressive: Offers extensive comparison tools and a wide range of coverage options.

• USAA: An outstanding option for military members and their families (if eligible).

The best practice is to get quotes from several providers to ensure you are getting the best price and service for your specific situation.

Tips for Choosing the Right Auto Insurance

Before you make a final decision, keep these factors in mind:

• Don't Just Shop on Price: While cost is critical, also consider the company’s financial strength (check ratings from A.M. Best or Standard & Poor's) and its reputation for customer service and claims handling.

• Compare Apples to Apples: When getting quotes, make sure the coverage limits and deductibles are identical so you can make a true comparison.

• Read the Policy Details: Understand what is and isn’t covered. Don’t just skim the declarations page.

• Re-evaluate Annually: Your life changes, and so do insurance rates. It’s a good habit to shop around every year or two before your policy renews.

Conclusion: Is Costco Auto Insurance Right for You?

So, does Costco have auto insurance? The answer is a resounding yes, through its valued partnership with CONNECT by American Family Insurance.

For Costco members, this program represents a fantastic opportunity to leverage their membership for potential significant savings on their car insurance. The combination of member-exclusive discounts, the backing of a reputable insurer like American Family, and the potential for exceptional customer service makes it a compelling choice.

If you are a Costco member looking to save money without compromising on coverage or service, getting a Costco auto insurance quote is a no-brainer. The process is quick, easy, and obligation-free. In the spirit of Costco, it’s just another way to get exceptional value out of your membership.

Frequently Asked Questions (FAQ) About Costco Auto Insurance

Here are answers to the most common questions about Costco car insurance.

1. Does Costco offer auto insurance directly?
No, Costco does not act as an insurance company. They partner with CONNECT by American Family Insurance to offer exclusive rates and service to their members.

2. What is CONNECT by American Family Insurance?
CONNECT is an insurance agency platform powered by the American Family Insurance company. It is the exclusive provider of auto and home insurance for Costco members.

3. Do I need a Costco membership to get auto insurance?
Yes, an active Costco membership is required to get a quote, purchase a policy, and maintain coverage.

4. Is Costco auto insurance cheaper than other companies?
For many drivers, yes. The member-exclusive group rates often result in significant savings compared to standard market rates from companies like GEICO or State Farm. However, the only way to know for sure is to get a personalized quote.

5. How do I apply for Costco auto insurance?
The easiest way is to visit the official Costco Insurance website or call their dedicated member phone number. You will need your Costco membership number and driver/vehicle information.

6. Can I bundle home and auto insurance with Costco?
Absolutely. Bundling your auto policy with a home, condo, or renters insurance policy through CONNECT is encouraged and typically leads to a substantial discount on both policies.

7. Does Costco auto insurance offer roadside assistance?
Yes, roadside assistance is available as an optional add-on to your policy for an additional premium.

8. What discounts are available for Costco members?
The primary discount is the exclusive group rate. Additional discounts may include multi-policy, safe driver, multi-vehicle, paid-in-full, and more.

9. Is Costco auto insurance available in all states?
No, the program is not available in every state. Currently, it is not available in Massachusetts, Michigan, and New Jersey. It's best to check the official website for the most up-to-date availability.

10. Can I switch to Costco auto insurance from my current provider?
Yes, switching is simple. When you get a quote and decide to purchase, the CONNECT team can often help guide you through the process of canceling your old policy, ensuring there is no gap in coverage.