DOES COSTCO OFFER AUTO INSURANCE

While Costco is renowned for its bulk savings on groceries and household items, many shoppers wonder about its other offerings. Specifically, "Does Costco offer auto insurance?" The answer is yes, through a partnership with Connect by American Family Insurance, providing members with potential savings and dedicated service.

Understanding Costco Auto Insurance: The Connect Partnership

For many consumers, the name "Costco" immediately conjures images of bulk toilet paper, rotisserie chickens, and discounted electronics. However, the warehouse giant has expanded its offerings far beyond the retail floor, venturing into financial services. One such venture is auto insurance. If you're a Costco member and have been asking, "Does Costco offer auto insurance?", the answer is a resounding yes. However, it's crucial to understand that Costco itself does not underwrite or issue insurance policies. Instead, they partner with established insurance providers to offer their members exclusive benefits and potentially lower rates. As of 2025, this primary partnership is with Connect by American Family Insurance, a subsidiary of American Family Insurance, a highly reputable and financially strong insurance company. This collaboration aims to leverage Costco's membership base and Connect's insurance expertise to provide a compelling auto insurance solution.

The core idea behind the Costco auto insurance program is to provide members with access to competitive pricing and dedicated customer service. By pooling the purchasing power of millions of Costco members, Connect can offer discounts and benefits that might not be available to the general public. This model is not unique to auto insurance; Costco also partners with other providers for services like home insurance, travel, and even car buying programs. The goal is to offer a curated selection of high-quality services that align with Costco's commitment to value and member satisfaction. Therefore, when you inquire about Costco auto insurance, you are essentially inquiring about the auto insurance products and services offered by Connect by American Family Insurance to Costco members.

Understanding this partnership is the first step in evaluating whether this option is the right fit for your automotive insurance needs. It's not about buying insurance directly from Costco, but rather about accessing a specific insurance product designed for Costco members, often with added perks and potential savings. This distinction is important for managing expectations and understanding the underlying structure of the offering. The Connect program is designed to be a comprehensive auto insurance solution, aiming to provide a smooth and beneficial experience for Costco members seeking to insure their vehicles.

How Costco Auto Insurance Works

The mechanism behind Costco's auto insurance offering is straightforward: it's a member-exclusive program facilitated through a partnership. Costco negotiates with an insurance carrier, in this case, Connect by American Family Insurance, to offer its members specialized rates and benefits. When a Costco member seeks auto insurance, they will interact with Connect, which is the underwriter and provider of the policy. The member identifies themselves as a Costco member during the quoting process, and this eligibility unlocks access to the specific discounts and features negotiated by Costco.

The process typically begins with obtaining a quote from Connect. This can usually be done online through Connect's website or by calling their customer service line. During the quote generation, you will be asked to provide standard information required for any auto insurance quote, such as your personal details, driving history, vehicle information, and desired coverage levels. Crucially, you will also be prompted to confirm your Costco membership status. This confirmation is what triggers the application of Costco member-specific benefits.

Connect by American Family Insurance then uses this information to assess risk and calculate your premium. The pricing is influenced by a multitude of factors, including your location, age, driving record, the type of vehicle you own, and the coverage you select. However, the Costco partnership introduces potential discounts that can lower the overall cost. These might include a Costco member discount, multi-car discounts, safe driver discounts, and discounts for bundling auto and home insurance policies. The goal is to offer a competitive price that reflects the collective buying power of Costco members.

Once you receive your quote, you can compare it with other insurance providers. If you decide to proceed with Connect, you will then formally purchase the policy through them. Your membership with Costco needs to remain active to maintain eligibility for the program's benefits and potentially the negotiated rates. If your membership lapses, you might be subject to standard rates or lose access to certain perks. Policy management, including making payments, updating information, and filing claims, is handled directly by Connect by American Family Insurance, not by Costco.

In essence, Costco acts as a facilitator, leveraging its brand and membership to create a preferred channel for its members to access auto insurance from a reputable provider. The value proposition lies in the potential for cost savings and the assurance of dealing with a well-regarded insurance company that has been vetted by Costco. This model allows Costco to extend its value proposition into the insurance sector without directly engaging in the complex business of underwriting and claims processing.

Key Features and Benefits of Connect Auto Insurance

Connect by American Family Insurance, as the provider for Costco members, offers a suite of features and benefits designed to appeal to the discerning Costco shopper. These advantages go beyond just potentially lower premiums and aim to provide a more comprehensive and satisfying insurance experience. Understanding these key aspects can help you determine if Connect aligns with your insurance needs and preferences. As of 2025, these benefits are a significant draw for many Costco members.

One of the most prominent benefits is the Costco member discount. This is a direct financial incentive for being a member of Costco. While the exact percentage can vary based on location and individual risk factors, it's a tangible saving that contributes to the overall value proposition. This discount is a testament to the partnership's intent to reward Costco loyalty.

Beyond the initial discount, Connect often provides exclusive member-only features. These can include things like accident forgiveness programs, which prevent your rates from increasing after a first at-fault accident, or vanishing deductibles, where your deductible decreases for every year you go without a claim. These types of benefits add significant value and peace of mind, especially for drivers who want an extra layer of protection against unexpected increases in their insurance costs.

Bundling discounts are another significant advantage. If you own a home and are looking for both auto and homeowners insurance, Connect offers substantial savings when you bundle these policies. This is a common practice in the insurance industry, but Costco members may find these bundled rates particularly competitive due to the negotiated partnership. This can simplify your insurance management and consolidate your payments with a single, trusted provider.

Customer service is a cornerstone of the Connect by American Family Insurance offering. They emphasize dedicated claims handling and responsive customer support. For Costco members, this often translates to a streamlined claims process, with adjusters who are trained to handle claims efficiently and empathetically. The backing of American Family Insurance, a company with a strong reputation for financial stability and customer satisfaction, adds another layer of reassurance.

Furthermore, Connect offers roadside assistance and towing services as part of many of their policies. This can be invaluable for unexpected breakdowns, providing peace of mind when you're on the road. The specifics of this coverage, such as the number of towing miles or the types of roadside assistance included, will vary by policy, but it's a valuable add-on that enhances the overall policy offering.

For those who drive newer vehicles, new car replacement coverage might be available. If your car is totaled within a certain timeframe of purchase, this coverage can help you replace it with a brand-new model, rather than just receiving the depreciated cash value. This is a feature that can be particularly attractive to members who invest in new vehicles and want protection against significant financial loss.

Finally, the financial strength of American Family Insurance, the parent company, is a significant benefit. As of 2025, American Family Insurance consistently receives high financial strength ratings from independent agencies like A.M. Best. This indicates a strong ability to pay claims and fulfill policy obligations, providing confidence to policyholders.

In summary, the benefits of Connect auto insurance for Costco members extend beyond just price. They encompass exclusive discounts, valuable policy features, robust customer service, and the backing of a financially secure insurance provider, all tailored to appeal to the Costco member demographic.

Costco Auto Insurance Coverage Options

When considering any auto insurance policy, understanding the available coverage options is paramount. Connect by American Family Insurance, in partnership with Costco, offers a comprehensive range of coverages designed to meet diverse needs and legal requirements. These options allow members to customize their policies to provide the right level of protection for their vehicles and financial situations. As of 2025, the core coverages remain standard across the industry, but the way they are bundled and priced for Costco members can be particularly attractive.

Liability Coverage is a fundamental component of any auto insurance policy and is typically required by law in most states. It is divided into two main parts:

• Bodily Injury Liability (BI): This coverage helps pay for medical expenses, lost wages, and legal fees if you are at fault in an accident that injures another person. Limits are usually expressed per person and per accident (e.g., $50,000/$100,000).
• Property Damage Liability (PD): This coverage helps pay for damage to another person's property (such as their car, fence, or building) if you are at fault in an accident. Limits are typically expressed per accident (e.g., $25,000).

Collision Coverage is optional but recommended for newer or higher-value vehicles. It helps pay for damage to your own car resulting from a collision with another vehicle or object, regardless of who is at fault. This coverage typically comes with a deductible, which is the amount you pay out-of-pocket before the insurance company pays the rest.

comprehensive coverage, also optional, covers damage to your vehicle from events other than collisions. This includes theft, vandalism, fire, natural disasters (like hail or floods), and hitting an animal. Like collision coverage, comprehensive coverage usually has a deductible.

Uninsured/Underinsured Motorist (UM/UIM) Coverage is designed to protect you if you are involved in an accident with a driver who has no insurance or insufficient insurance to cover your damages. This coverage can include:

• UM/UIM Bodily Injury: Covers your medical expenses and lost wages if you are injured by an uninsured or underinsured driver.
• UM/UIM Property Damage: Covers damage to your vehicle if you are involved in an accident with an uninsured driver. In some states, this may be an alternative to collision coverage for uninsured motorists.

Medical Payments (MedPay) or Personal Injury Protection (PIP): These coverages help pay for medical expenses for you and your passengers, regardless of who is at fault in an accident. PIP is more comprehensive and may also cover lost wages and other related expenses, and it is required in "no-fault" states. MedPay is typically more limited to medical and funeral expenses.

Optional Coverages and Endorsements that Connect by American Family Insurance may offer include:

• Rental Reimbursement: This coverage helps pay for a rental car while your vehicle is being repaired after a covered claim.
• Towing and Labor Costs: Covers the cost of towing your vehicle to a repair shop and minor roadside labor (like a jump-start or tire change).
• New Car Replacement: If your new car is totaled, this coverage can help you replace it with a brand-new car of the same make and model, rather than just paying its depreciated value.
• Gap Insurance: If you have a loan or lease on your vehicle and it's totaled, gap insurance covers the difference between what you owe on the loan/lease and the car's actual cash value.

The specific availability and details of these coverages can vary by state due to differing insurance regulations. When obtaining a quote from Connect, it's essential to discuss your specific needs with an agent or review the policy details carefully to ensure you have the appropriate coverage levels and options for your situation. The goal is to create a policy that provides robust protection while remaining cost-effective, leveraging the Costco member benefits to achieve this balance.

Who is Eligible for Costco Auto Insurance?

The primary eligibility requirement for accessing the Costco auto insurance program, underwritten by Connect by American Family Insurance, is straightforward: you must be an active Costco member. This is the gateway to the program's exclusive benefits, including potential discounts and specialized features negotiated by Costco. Without a current Costco membership, you generally cannot obtain the specific rates and perks associated with this partnership. As of 2025, this remains the fundamental criterion.

However, eligibility for *obtaining* an insurance policy from Connect by American Family Insurance extends beyond just Costco membership. Connect, like any other insurance provider, will assess individual risk factors to determine if they can offer a policy and at what rate. These factors are standard in the insurance industry and include:

• Driving Record: A history of accidents, traffic violations (speeding tickets, DUIs), and claims can affect your eligibility and the premium you are offered. A clean driving record is generally preferred.
• Credit-Based Insurance Score: In many states, insurance companies use a credit-based insurance score to help predict the likelihood of a policyholder filing a claim. Individuals with higher credit-based scores may receive lower premiums. (Note: Some states prohibit or restrict the use of credit scores in insurance pricing.)
• Age and Gender: These demographic factors are often used in actuarial calculations, though their impact can vary by state and insurer.
• Location: Where you live and park your car can influence rates due to factors like local crime rates, traffic density, and weather patterns.
• Vehicle Type: The make, model, year, and safety features of your vehicle play a significant role in determining insurance costs.
• Coverage Needs: The types and limits of coverage you select will directly impact your premium.
• Claims History: A history of frequent or severe insurance claims can make it more challenging to get approved or result in higher premiums.

Connect by American Family Insurance will conduct a thorough underwriting process based on these factors. While being a Costco member grants you access to their program, it does not guarantee approval or a specific rate if your risk profile is deemed too high by the insurer. For instance, drivers with multiple recent DUIs or a history of major at-fault accidents might be denied coverage by Connect, even if they are Costco members.

It's also important to note that the Costco auto insurance program is typically available to residents of specific states. While Connect by American Family Insurance operates in many states, the availability of their Costco-branded program might be limited to certain geographic areas. Potential customers should verify that Connect offers auto insurance in their state.

In summary, to be eligible for the Costco auto insurance program, you must first and foremost be an active Costco member. Beyond that, you must meet the underwriting criteria of Connect by American Family Insurance, which involves a review of your driving history, creditworthiness (where applicable), and other standard risk assessment factors. The partnership provides a valuable avenue for savings and benefits, but individual insurability is determined by the insurance carrier.

Getting a Quote and Comparing Options

The process of obtaining an auto insurance quote from Connect by American Family Insurance for Costco members is designed to be accessible and informative. It typically involves a few key steps, allowing you to understand your potential savings and coverage. As with any significant purchase, comparing quotes from multiple providers is a crucial part of making an informed decision. As of 2025, the digital landscape makes this comparison easier than ever.

Step 1: Verify Your Costco Membership

Before you begin, ensure your Costco membership is current. You will likely need your membership number during the quoting process. If you are not a member, you will need to join Costco to take advantage of this program.

Step 2: Visit the Connect Website or Call

The most direct way to get a quote is through the official Connect by American Family Insurance website. Look for a section specifically dedicated to Costco members or auto insurance. Alternatively, you can call their customer service line, and an agent will guide you through the process. Many insurance providers also have mobile apps that facilitate quote generation.

Step 3: Provide Necessary Information

You will be asked to provide detailed information to generate an accurate quote. This typically includes:

• Personal Information: Your name, address, date of birth, and contact details.
• Driver Information: Details about all drivers in your household, including their driving records, ages, and marital status.
• Vehicle Information: Details about each vehicle you wish to insure, including the make, model, year, VIN (Vehicle Identification Number), and safety features.
• Current Insurance Information: Information about your current auto insurance policy, including coverage limits and deductibles. This helps in comparing apples to apples.
• Costco Membership Number: This is essential to unlock the Costco member benefits and discounts.

Step 4: Select Coverage Options

You will have the opportunity to choose your desired coverage levels, including liability limits, collision and comprehensive deductibles, and any optional coverages like rental reimbursement or roadside assistance. It's wise to have your current policy handy to ensure you are comparing similar levels of protection.

Step 5: Review Your Quote

Once you submit the information, Connect will generate a personalized quote. This quote will outline your premium, the specific discounts applied (including the Costco member discount), and the details of the coverage you have selected. Take your time to review this thoroughly.

Step 6: Compare with Other Insurers

This is a critical step. While Connect offers Costco member benefits, it's essential to compare their quote with those from other reputable auto insurance providers. Use online comparison tools, contact other agents, or visit the websites of other major insurers. When comparing, ensure you are looking at identical coverage levels and deductibles to get an accurate picture of the cost difference.

Factors to Consider Beyond Price:

• Customer Service Reputation: Look at reviews and ratings for Connect and other insurers regarding their claims handling and customer support.
• Financial Strength: As mentioned, American Family Insurance (Connect's parent company) has strong financial ratings. Check the ratings for other insurers you are considering.
• Policy Features: Some insurers may offer unique benefits or flexibility that might be more valuable to you than a slightly lower price.
• Ease of Doing Business: Consider how easy it is to manage your policy, pay bills, and file claims online or through their app.

By following these steps, you can effectively obtain a quote from Connect for Costco members and then conduct a thorough comparison to ensure you are selecting the best auto insurance policy for your needs and budget in 2025.

Costco Auto Insurance vs. Competitors: A Detailed Comparison

When evaluating "Does Costco offer auto insurance?", it's crucial to place it within the broader competitive landscape. Costco's offering through Connect by American Family Insurance aims to be a strong contender, but how does it stack up against other major auto insurance providers? This comparison will delve into key areas, highlighting potential advantages and disadvantages. As of 2025, the market is dynamic, with insurers constantly adjusting their pricing and offerings.

1. Pricing and Discounts:

• Costco/Connect: The primary draw is the Costco member discount, which can offer significant savings. They also offer standard discounts like multi-car, safe driver, and bundling. The collective buying power of Costco members is intended to translate into competitive rates.
• Competitors (e.g., Geico, Progressive, State Farm, Allstate): These companies also offer a wide array of discounts, often including multi-car, good student, defensive driving courses, and telematics programs (usage-based insurance). Their pricing can vary widely based on individual risk profiles and their specific underwriting models. Some may offer more aggressive pricing for certain driver demographics or vehicle types.

2. Coverage Options:

• Costco/Connect: Provides standard coverages (liability, collision, comprehensive, UM/UIM, MedPay/PIP) and common optional coverages like rental reimbursement and roadside assistance. They may also offer specialized benefits like new car replacement or accident forgiveness, depending on the policy and state.
• Competitors: Most major insurers offer a similar breadth of core and optional coverages. Some may have more niche endorsements or specialized programs. For example, some insurers might offer more robust classic car insurance or ride-sharing coverage options.

3. Customer Service and Claims Handling:

• Costco/Connect: Benefits from the reputation of American Family Insurance, which generally scores well in customer satisfaction surveys and financial strength ratings. Costco members may experience a streamlined process due to the partnership.
• Competitors: Customer service and claims satisfaction vary significantly among competitors. Companies like USAA (for military members) and State Farm often receive high marks. Geico and Progressive are known for their robust online platforms and app-based services. It's essential to research independent reviews (e.g., J.D. Power, Consumer Reports) for specific companies.

4. Financial Strength:

• Costco/Connect: Backed by American Family Insurance, which consistently holds high financial strength ratings (e.g., A.M. Best A+). This ensures the insurer's ability to pay claims.
• Competitors: Major insurers like State Farm, Progressive, and Allstate also generally have strong financial ratings. It's always advisable to check the A.M. Best rating for any insurer you consider.

5. Digital Experience and Technology:

• Costco/Connect: Connect's website and app are generally user-friendly, offering online quoting, policy management, and claims filing. The integration with Costco's ecosystem is a unique aspect.
• Competitors: Many competitors have invested heavily in technology, offering sophisticated mobile apps, online portals, and telematics programs that track driving behavior for potential discounts. Geico and Progressive are often cited for their advanced digital platforms.

6. Target Audience:

• Costco/Connect: Primarily targets active Costco members, appealing to those who value the brand and seek potential savings through membership benefits.
• Competitors: Target a broader market, with some specializing (e.g., USAA for military families) or focusing on specific customer segments (e.g., budget-conscious drivers, those seeking comprehensive coverage).

Table: Costco Auto Insurance (Connect) vs. Major Competitors (General Comparison - 2025)

Conclusion of Comparison: Costco's auto insurance through Connect is a compelling option, particularly for existing Costco members who can leverage exclusive discounts. However, it's not automatically the cheapest or best option for everyone. The key takeaway is that direct comparison is essential. A Costco member might find Connect offers superior value, while another individual, perhaps without a Costco membership or with a unique risk profile, might find better rates or coverage elsewhere.

Real-World Scenarios and Testimonials

To truly understand the value of Costco's auto insurance program, it's helpful to look at how it performs in real-world scenarios and consider what actual users might experience. While direct testimonials are often proprietary, we can construct illustrative examples based on common insurance needs and the features offered by Connect by American Family Insurance. As of 2025, the program continues to serve a significant member base.

Scenario 1: The Budget-Conscious Family

The Miller family, long-time Costco members, have two cars and three drivers (two adults, one teen driver). They are looking to minimize their insurance costs without compromising on essential coverage. They get a quote from Connect through the Costco auto insurance program. The quote includes a Costco member discount, a multi-car discount, and a discount for their teen driver having good grades. They also opt for slightly higher deductibles on collision and comprehensive to lower the premium further. They compare this quote with quotes from Geico and Progressive. Connect's quote comes in approximately $200 less per year for comparable coverage, largely due to the combined effect of the Costco membership discount and the multi-car discount.

Illustrative Testimonial Snippet: "As a Costco member, I was curious about their auto insurance. Getting a quote was easy, and the savings were significant. We bundled our two cars and got a great rate, especially with the teen driver discount factored in. It felt like a smart way to use our membership benefits." - Sarah M., California

Scenario 2: The Accident Victim

John, a Costco member, is involved in a minor fender-bender where he is found to be at fault. The other driver's car sustained minor damage. John has Connect auto insurance with Connect by American Family Insurance. He immediately files a claim through Connect's online portal. He is assigned a claims adjuster within 24 hours. The adjuster is professional and guides him through the process. Because John has property damage liability coverage with Connect, the insurer handles the repairs for the other driver's vehicle promptly. John's own vehicle has collision coverage with a $500 deductible. He takes his car to an approved repair shop, pays his deductible, and Connect covers the rest of the repair costs.

Illustrative Testimonial Snippet: "I had a small accident and was worried about the hassle. Filing the claim with Connect was surprisingly smooth. The adjuster was helpful, and my car was repaired quickly. I appreciated that my rates didn't skyrocket immediately after the claim, thanks to their claims handling approach." - David R., Texas

Scenario 3: The Bundling Opportunity

Maria and Carlos, Costco members, recently purchased their first home. They were previously insured with separate companies for their auto and renters insurance. They decide to explore the Costco auto insurance program and discover that Connect also offers homeowners insurance. They get a bundled quote for both auto and homeowners insurance. The combined premium is significantly lower than their previous separate policies, thanks to the bundling discount offered by Connect. They also appreciate the convenience of managing both policies through a single provider.

Illustrative Testimonial Snippet: "We were looking for homeowners insurance and remembered Costco had an auto insurance partnership. We got quotes for both, and the savings from bundling were substantial. It simplified our finances, and we feel confident with the American Family Insurance backing." - Maria G., Florida

Scenario 4: The Young Driver's First Policy

Young driver, Alex, is getting his driver's license and needs his first auto insurance policy. His parents are Costco members and encourage him to get a quote from Connect. Alex's parents' policy is updated to include him as a driver. Connect offers a discount for young drivers who maintain a certain GPA (Good Student Discount), which Alex qualifies for. While the cost of adding a young driver is always a significant expense, the Costco member discount and the Good Student discount help make the premium more manageable compared to quotes from other insurers who didn't offer the same combination of benefits.

Illustrative Testimonial Snippet: "Getting insurance for my first car was daunting. My parents are Costco members, so we looked into Connect. The good student discount really helped bring the cost down. It felt like a good balance of protection and affordability for me." - Alex P., New York

These scenarios illustrate how Costco's auto insurance partnership with Connect can translate into tangible benefits for members. The key themes emerging are potential cost savings through exclusive discounts, streamlined processes for claims and policy management, and the added value of bundling services. While individual experiences will always vary, these examples highlight the program's strengths in addressing common consumer needs.

Making the Switch to Connect by American Family

Deciding to switch your auto insurance provider is a significant decision, and for Costco members exploring Connect by American Family Insurance, the process is generally designed to be as smooth as possible. The allure of potential savings and the backing of reputable brands like Costco and American Family Insurance can be strong motivators. As of 2025, the steps involved remain consistent, focusing on preparation, comparison, and execution.

Step 1: Thoroughly Review Your Current Policy

Before you even get a quote from Connect, take time to understand your current auto insurance policy. Identify your current coverage levels (liability limits, deductibles for collision and comprehensive), any optional coverages you have (rental reimbursement, roadside assistance), and your current premium. This information is crucial for ensuring you are comparing "apples to apples" when you receive a quote from Connect. Knowing your current policy details will help you ask the right questions and avoid unknowingly reducing your coverage.

Step 2: Obtain a Comprehensive Quote from Connect

As detailed previously, visit the Connect by American Family Insurance website or call their customer service line. Make sure to have your Costco membership number ready. Provide all requested information accurately. Don't hesitate to ask the Connect representative about any discounts you might be eligible for beyond the standard Costco member discount (e.g., multi-car, safe driver, low mileage). Understand the details of their claims process, roadside assistance, and any other policy features.

Step 3: Compare Connect's Quote with Other Insurers

This step cannot be overemphasized. While Connect offers Costco member benefits, it's vital to compare their quote with at least two or three other reputable insurance companies. Use online comparison tools, contact independent agents, or get quotes directly from competitors like Progressive, Geico, State Farm, or others active in your state. Ensure the coverage levels and deductibles are identical for a fair comparison. Look beyond just the premium cost; consider factors like customer service ratings, financial strength, and the specific features of each policy.

Step 4: Evaluate the Total Value Proposition

Once you have comparable quotes, evaluate the total value. Which policy offers the best combination of price, coverage, and service for your specific needs? If Connect's quote is competitive and their coverage meets your requirements, and you value the Costco partnership, it might be the right choice. Consider the peace of mind that comes with dealing with a financially stable company like American Family Insurance.

Step 5: Notify Your Current Insurer of Your Decision to Cancel

Once you have decided on a new policy with Connect (or another insurer), do not cancel your current policy until your new policy is officially in effect. The effective date of your new policy is critical to avoid any gaps in coverage. Gaps in insurance can lead to significant penalties, including higher premiums in the future and legal issues.

Step 6: Complete the New Policy Application with Connect

If you choose Connect, you will proceed with their formal application process. This may involve signing policy documents electronically or physically. Ensure you understand all terms and conditions before finalizing. You will typically pay your first premium at this stage.

Step 7: Update Your Vehicle Registrations and Insurance Information

In some states, you may need to update your vehicle registration information with your new insurance details. Additionally, if you have any automatic payments set up for tolls, parking passes, or other services linked to your old insurance provider, update those details as well.

Key Considerations During the Switch:

• Timing: Aim to switch your policy shortly before your current policy's renewal date to avoid paying for overlapping coverage or missing a payment deadline.
• Documentation: Keep copies of all policy documents, quotes, and cancellation confirmations for your records.
• Costco Membership: Remember that maintaining your Costco membership is generally required to keep the Costco member discounts and benefits with Connect.

By following these steps, Costco members can confidently navigate the process of switching to Connect by American Family Insurance, ensuring they secure appropriate coverage and potentially benefit from their membership.

Understanding Policy Management and Claims

Once you've secured an auto insurance policy with Connect by American Family Insurance through the Costco partnership, understanding how to manage your policy and navigate the claims process is essential. This ensures a smooth experience and timely resolution of any issues. As of 2025, Connect offers robust digital tools and customer support channels to facilitate these aspects.

Policy Management:

Managing your policy involves making payments, updating your information, and accessing policy documents. Connect provides several convenient ways to do this:

• Online Portal: The Connect by American Family Insurance website typically features a secure online portal where policyholders can log in to view their policy details, download ID cards and policy documents, make payments, and update personal information (like address changes or adding/removing drivers or vehicles). This is often the most efficient way to handle routine policy tasks.
• Mobile App: Many insurance providers, including Connect, offer a mobile application that mirrors the functionality of their online portal. This allows policyholders to manage their insurance on the go, access digital ID cards instantly, and even file claims directly from their smartphone.
• Phone Support: For those who prefer speaking with a person, Connect's customer service line is available to assist with policy changes, payment inquiries, and general questions.
• Payment Options: Connect typically offers various payment methods, including online payments (credit card, bank account transfer), phone payments, mail-in checks, and sometimes automatic bank withdrawals (EFT). Choosing automatic payments can often help avoid late fees and ensure continuous coverage.
• Policy Updates: It's crucial to keep your policy information up-to-date. Inform Connect immediately if you move, purchase a new vehicle, add or remove a driver, or make significant modifications to your current vehicle. Failure to do so could impact your coverage or premium.

Claims Process:

Experiencing an accident or damage to your vehicle can be stressful. Connect by American Family Insurance aims to make the claims process as straightforward as possible for Costco members. Here’s a general overview:

Step 1: Ensure Safety and Report the Incident

• If you are involved in an accident, prioritize safety. Check for injuries and call emergency services if necessary.
• Exchange information with other parties involved (names, contact details, insurance information, license plate numbers).
• If possible and safe to do so, take photos of the accident scene, vehicle damage, and any relevant factors (e.g., road conditions, traffic signals).
• Report the incident to the police if required by law or if there are significant damages or injuries.

Step 2: Report Your Claim to Connect

You can typically report a claim through multiple channels:

• Online: Use the Connect website or mobile app to file a claim. This is often the quickest method and allows you to upload photos and documentation.
• Phone: Call Connect's dedicated claims hotline. This is a good option if you need immediate assistance or prefer to speak with a claims representative directly.

Step 3: Claim Assignment and Investigation

Once your claim is reported, Connect will assign it to a claims adjuster. The adjuster will review the information you provided, contact other parties involved if necessary, and may arrange for an inspection of the damaged vehicle. This inspection can often be done at a repair shop, your home, or through photos submitted via the app.

Step 4: Repair and Settlement

If your vehicle is damaged, Connect will work with you to get it repaired. They may have a network of preferred repair shops that can streamline the process. You will pay your deductible directly to the repair shop, and Connect will cover the remaining covered repair costs up to your policy limits. If your vehicle is deemed a total loss, Connect will work with you to determine its actual cash value and provide a settlement offer.

Step 5: Additional Coverages (Rental, Towing)

If your policy includes rental reimbursement, Connect will assist you in arranging a rental car while yours is being repaired. If you have towing and labor coverage, they can help coordinate roadside assistance.

Tips for a Smoother Claims Process:

• Be Honest and Accurate: Provide truthful and complete information when reporting your claim.
• Keep Records: Maintain copies of all communication, repair estimates, and receipts.
• Communicate: Stay in touch with your claims adjuster and respond promptly to any requests for information.
• Understand Your Policy: Know your deductibles and coverage limits before you need to file a claim.

By understanding these aspects of policy management and claims handling, Costco members can feel more confident and prepared when interacting with Connect by American Family Insurance.

Costco Auto Insurance: Pros and Cons

Like any financial product or service, the auto insurance offering through Costco's partnership with Connect by American Family Insurance comes with its own set of advantages and disadvantages. Understanding these can help potential customers make a well-informed decision. As of 2025, the program continues to evolve, but these core points generally hold true.

Pros:

• Potential Cost Savings: The primary draw is the exclusive Costco member discount, which can lead to lower premiums compared to non-member rates or even some competitor offerings. The collective buying power of Costco members is leveraged to achieve this.
• Reputable Underwriter: Connect is backed by American Family Insurance, a well-established and financially strong company with a solid reputation for customer service and claims handling. This provides a level of trust and security.
• Exclusive Member Benefits: Beyond the discount, there may be other member-specific perks or features integrated into the policies, enhancing the overall value proposition.
• Bundling Opportunities: Costco members can often save more by bundling auto insurance with homeowners or renters insurance through Connect, simplifying policy management and potentially reducing costs further.
• Convenience for Members: For existing Costco members, this offers a convenient option to explore for auto insurance, leveraging a brand they already trust and use.
• Comprehensive Coverage Options: Connect offers a full suite of standard auto insurance coverages, allowing members to tailor policies to their specific needs.
• Digital Tools: The availability of online portals and mobile apps for policy management and claims filing enhances convenience and accessibility.

Cons:

• Requires Costco Membership: The most significant prerequisite is an active Costco membership. If you are not a member, you cannot access the program's benefits, and the cost savings may not materialize. The annual membership fee itself needs to be factored into the overall value.
• Not Always the Cheapest: While often competitive, Connect's pricing is not guaranteed to be the absolute lowest for every individual. Market conditions, individual risk factors, and competitor pricing strategies mean that other insurers might offer a better rate for certain drivers or situations.
• Limited Availability: The program may not be available in all states where Costco operates, or Connect may not offer auto insurance in every state. Potential customers must verify availability in their specific location.
• Underwriting Still Applies: Being a Costco member grants access, but Connect still underwrites each applicant based on their driving record, credit score (where permitted), and other risk factors. Individuals with high-risk profiles may not be approved or may receive high premiums.
• Dependence on Partnership: The program's structure relies on the ongoing partnership between Costco and Connect. Changes to this partnership could affect the availability or terms of the insurance offering in the future.
• Customer Service Varies: While American Family Insurance generally has a good reputation, individual experiences with customer service and claims can vary, as with any insurance provider.

Who is it best for?

The Costco auto insurance program through Connect is likely best for:

• Active Costco members who are looking for competitive auto insurance rates.
• Individuals who value the convenience of bundling auto and home/renters insurance.
• Drivers with good driving records and credit histories who are likely to qualify for favorable rates.
• Consumers who appreciate the trust and reputation associated with the Costco brand.

Who might look elsewhere?

• Individuals who are not Costco members or are unwilling to join.
• Drivers with significant driving violations or a history of claims, who may be better served by insurers specializing in high-risk policies.
• Consumers who prioritize the absolute lowest price above all else and are willing to shop extensively across all providers.
• Those living in states where the program is not available or where competitors offer exceptionally low rates.

Ultimately, the decision to choose Connect by American Family Insurance for your auto insurance needs hinges on a personal assessment of these pros and cons, weighed against your individual circumstances and priorities.

Frequently Asked Questions About Costco Auto Insurance

Navigating the world of insurance can bring up many questions. Here are some frequently asked questions regarding Costco's auto insurance program, addressed to clarify common concerns. As of 2025, these points remain relevant for members considering this option.

Q1: Does Costco actually sell auto insurance?

A: No, Costco does not underwrite or sell auto insurance directly. Instead, they partner with insurance providers to offer their members exclusive benefits and potentially discounted rates. Currently, the primary partner for auto insurance is Connect by American Family Insurance.

Q2: What is Connect by American Family Insurance?

A: Connect is an insurance carrier that is part of the American Family Insurance group. They specialize in offering insurance products, including auto insurance, to Costco members through this partnership.

Q3: Do I have to be a Costco member to get this insurance?

A: Yes, a current and active Costco membership is required to be eligible for the Costco auto insurance program and its associated discounts and benefits offered through Connect.

Q4: How much can I save with Costco auto insurance?

A: The amount of savings can vary significantly based on individual factors such as your location, driving record, the type of vehicle you own, and the coverage you choose. Costco members often report significant savings, but it's essential to get a personalized quote to determine your potential savings.

Q5: What kind of coverage does Costco auto insurance offer?

A: Connect by American Family Insurance offers a comprehensive range of auto insurance coverages, including liability (bodily injury and property damage), collision, comprehensive, uninsured/underinsured motorist, medical payments/personal injury protection, and various optional coverages like rental reimbursement and roadside assistance.

Q6: Is Connect by American Family Insurance available in all states?

A: Connect by American Family Insurance offers auto insurance in many states, but availability can vary. It's important to check their website or contact them directly to confirm if they provide coverage in your specific state.

Q7: What if I have a poor driving record? Can I still get insurance through Costco?

A: While being a Costco member grants access to the program, Connect, like any insurer, will underwrite your application based on your driving history, credit score (where applicable), and other risk factors. Individuals with significant driving violations or a history of major claims may be denied coverage or offered higher premiums.

Q8: How do I get a quote?

A: You can typically get a quote by visiting the Connect by American Family Insurance website and looking for the Costco member auto insurance section, or by calling their customer service line. Have your Costco membership number ready.

Q9: What happens if I let my Costco membership expire?

A: If your Costco membership expires, you may lose eligibility for the Costco member discounts and benefits associated with your Connect auto insurance policy. Your premium could increase to reflect standard rates. It's advisable to maintain your membership to keep the negotiated rates.

Q10: How does Costco auto insurance compare to other major providers like Geico or Progressive?

A: Costco's program through Connect is often competitive, especially for members, due to exclusive discounts. However, it's crucial to compare quotes from multiple providers, including Geico, Progressive, State Farm, and others, to ensure you are getting the best overall value in terms of price, coverage, and service for your specific needs.

Q11: Who handles my claims if I have an accident?

A: Your claims will be handled directly by Connect by American Family Insurance. They have dedicated claims adjusters and processes to manage your claim efficiently.

Q12: Can I bundle my auto and home insurance with Connect?

A: Yes, Connect by American Family Insurance typically offers discounts for bundling auto insurance with homeowners or renters insurance, which can provide additional savings and convenience.

In conclusion, the question "Does Costco offer auto insurance?" is answered with a qualified yes, through their partnership with Connect by American Family Insurance. This program offers Costco members a compelling avenue to potentially secure competitive auto insurance rates and benefits. By understanding the partnership structure, coverage options, eligibility requirements, and the importance of comparing quotes, Costco members can effectively evaluate whether this offering aligns with their insurance needs. While the allure of exclusive discounts and the backing of reputable brands are significant draws, a thorough comparison with other providers remains a crucial step in making the most informed decision for your automotive protection in 2025.