DOES COSTCO PROVIDE AUTO INSURANCE

Yes, Costco does provide auto insurance through its subsidiary, CONNECT by American Family Insurance. This offering allows Costco members to access potentially competitive rates and member-exclusive benefits on car insurance policies, making it a viable option for many seeking coverage.

Understanding Costco Auto Insurance

Costco, a retail giant renowned for its bulk goods and member-exclusive deals, extends its value proposition into the realm of auto insurance. While Costco itself doesn't underwrite policies, it partners with established insurance providers to offer car insurance to its members. For many years, this partnership was with Ameriprise Auto & Home Insurance. However, as of early 2020, the program transitioned to a new provider: CONNECT, powered by American Family Insurance. This strategic shift aims to leverage the strengths of both entities – Costco's vast membership base and CONNECT's expertise in insurance services – to deliver competitive auto insurance solutions.

The core concept behind Costco's auto insurance offering is to provide its members with a streamlined and potentially cost-effective way to secure car insurance. This isn't a one-size-fits-all policy; rather, it's a curated program designed to offer a range of coverage options, discounts, and benefits tailored to the needs of Costco members. The primary appeal lies in the potential for savings, often attributed to group buying power and exclusive member perks. Understanding this model is crucial: you're not buying insurance directly from Costco, but rather through a partnership that grants you access to specific plans and pricing structures.

In 2025, the landscape of auto insurance is as dynamic as ever, with rising premiums and an increasing demand for personalized coverage. Costco's auto insurance program, under the CONNECT umbrella, positions itself as a contender in this market by offering a familiar brand name and the promise of value. This makes it an attractive proposition for many Costco members who already trust the brand for other purchases and services. The convenience of accessing insurance through a platform they regularly engage with is a significant draw, simplifying what can often be a complex and time-consuming process.

The decision to explore Costco's auto insurance offering should be based on a thorough understanding of what it entails. This includes examining the types of coverage available, the eligibility requirements, the potential discounts, and how it stacks up against other insurance providers in terms of price and service. The goal is to determine if this particular avenue aligns with your individual insurance needs and financial goals. As we delve deeper, we will unpack the specifics of this program, providing the insights needed to make an informed decision in 2025.

How Costco Auto Insurance Works

The operational model of Costco's auto insurance is a partnership-driven approach. Costco, through its subsidiary CONNECT (formerly known as CONNECT by American Family Insurance), acts as a facilitator, connecting its members with auto insurance policies underwritten by American Family Insurance or its affiliates. This means that when you purchase auto insurance through Costco's program, you are actually getting a policy from American Family Insurance, but with potential benefits and pricing advantages available specifically to Costco members. This is a common strategy in the insurance industry, where large organizations leverage their customer base to negotiate favorable terms with insurance carriers.

The process typically begins with a Costco membership. While not all Costco auto insurance programs require a membership for a quote, obtaining a policy usually does. This membership requirement is a key factor in how the program can offer potential savings. The idea is that by aggregating a large pool of customers (Costco members), the insurance underwriter can achieve economies of scale, which can then be passed on as lower premiums. It's similar to how Costco offers bulk pricing on goods; here, it's applied to insurance.

When a Costco member expresses interest in auto insurance, they are directed to the CONNECT platform. Here, they can obtain a quote by providing information about themselves, their vehicles, driving history, and desired coverage levels. The CONNECT system then uses this information to generate a personalized quote from American Family Insurance, factoring in any applicable Costco member discounts. This quote is then presented to the member, who can compare it with other insurance options.

The underwriting and claims handling are managed by American Family Insurance. This is an important distinction to make. Costco is not an insurance company; it does not set premiums, assess risk, or process claims. Its role is primarily in marketing and facilitating access to the insurance product offered by its partner. Therefore, while the initial interaction might be through a Costco-branded channel, the ongoing relationship for policy management and claims will be with American Family Insurance.

In 2025, the integration between Costco and CONNECT is designed to be as seamless as possible. Members can often get quotes online, over the phone, or through dedicated agents. The program emphasizes ease of use and transparency, aiming to demystify the insurance buying process. The potential for exclusive benefits, such as accident forgiveness or roadside assistance, further differentiates the offering. It’s important to note that the specific benefits and discounts can vary by state and may be subject to change, so it’s always advisable to confirm the details at the time of obtaining a quote.

The structure ensures that members are dealing with a reputable insurance carrier while still receiving the perceived value of a Costco-affiliated program. This dual approach aims to build trust and provide a compelling reason for Costco members to consider their auto insurance needs through this channel. Understanding this operational flow is the first step in evaluating whether Costco auto insurance is the right choice for your needs.

Eligibility Requirements

To access the auto insurance program offered through Costco, a current Costco membership is generally required. This is the primary gateway to the program's benefits and potentially preferred pricing. Without an active membership, you may not be eligible to purchase a policy or receive the exclusive member discounts. The type of membership (e.g., Gold Star, Business, Executive) might also play a role, though typically any paid membership tier grants access to the insurance program.

Beyond the membership, standard insurance eligibility criteria apply. This includes having a valid driver's license, owning or regularly operating the vehicle you wish to insure, and meeting the legal requirements for insurance coverage in your state. Insurers will also assess your driving record, including any past accidents, traffic violations, or claims. A history of serious offenses may impact your eligibility or the premiums you are offered.

The vehicles being insured must also meet certain criteria. Typically, standard passenger vehicles, SUVs, and light trucks are eligible. Exotic cars, heavily modified vehicles, or those used for commercial purposes might fall outside the program's scope or require special consideration. The age and condition of the vehicle can also be a factor in determining coverage options and costs.

Geographic location is another significant factor. Costco's auto insurance program, through CONNECT and American Family Insurance, is available in most U.S. states, but not all. Availability can also be affected by specific zip codes within states due to local risk factors and regulatory environments. It's essential to verify if the program is offered in your particular state and region.

Finally, the insurance company will consider your risk profile as an applicant. This involves evaluating factors such as your age, credit history (in states where it's permitted), marital status, and the primary use of the vehicle (e.g., commuting, pleasure). These factors help the insurer determine the likelihood of a claim and set an appropriate premium. While Costco's program aims to offer value, it still operates within the established risk assessment frameworks of the insurance industry.

The Role of CONNECT by American Family Insurance

CONNECT, powered by American Family Insurance, is the underwriter and service provider for Costco's auto insurance program. This partnership is crucial to understanding the program's mechanics. American Family Insurance is a well-established insurance company with a long history and a strong financial rating, which provides a layer of security and reliability for policyholders. CONNECT acts as the brand through which this insurance is offered to Costco members.

CONNECT's role encompasses several key functions: policy underwriting, pricing, claims processing, and customer service. When you get a quote, it's CONNECT that assesses your risk and determines the premium. If you decide to purchase a policy, CONNECT issues the policy and manages your account. In the unfortunate event of an accident or other covered incident, it is CONNECT and American Family Insurance that will handle your claim.

The integration with Costco means that CONNECT also offers specific benefits and discounts to Costco members. These can include preferred pricing, special endorsements, or loyalty rewards. The goal is to create a symbiotic relationship where Costco members gain access to quality insurance at potentially better rates, and American Family Insurance gains access to a large, pre-qualified customer base. This collaborative approach aims to enhance the overall value proposition for the consumer.

For members, this means that while the program is associated with Costco, the actual insurance product and the service they receive will be from American Family Insurance. This is important for managing expectations regarding customer service, claims handling, and policy details. Understanding that CONNECT is the insurance provider, backed by American Family Insurance, is key to navigating the program effectively.

Costco Auto Insurance Coverage Options

Costco's auto insurance program, through CONNECT and American Family Insurance, offers a comprehensive suite of coverage options designed to meet the diverse needs of drivers. These options are generally in line with what most reputable auto insurance providers offer, but the specific details and endorsements may be tailored for Costco members. It's important to understand each type of coverage to build a policy that provides adequate protection.

Liability Coverage: This is a fundamental component of any auto insurance policy. It covers damages you cause to others in an accident, including bodily injury to other people and property damage to their vehicles or other possessions. Liability coverage is typically split into two parts: bodily injury liability and property damage liability. State laws mandate minimum liability limits, but it is often advisable to carry higher limits to protect your assets in case of a severe accident. For example, in 2025, many financial advisors recommend liability limits of at least $100,000/$300,000/$100,000 (bodily injury per person/bodily injury per accident/property damage).

Collision Coverage: This coverage helps pay for damage to your own vehicle resulting from a collision with another vehicle or object, such as a tree or a guardrail. Collision coverage is subject to a deductible, which is the amount you pay out-of-pocket before the insurance company covers the remaining costs. The choice of deductible (e.g., $500, $1,000) significantly impacts your premium; a higher deductible generally means a lower premium.

comprehensive coverage: This coverage helps pay for damage to your vehicle that is not caused by a collision. This includes incidents like theft, vandalism, fire, natural disasters (hail, floods, earthquakes), and falling objects. Like collision coverage, comprehensive coverage also has a deductible. This coverage is typically required by lenders if you have a car loan or lease.

Uninsured/Underinsured Motorist (UM/UIM) Coverage: This coverage protects you if you are involved in an accident with a driver who has no insurance (uninsured) or insufficient insurance to cover your damages (underinsured). UM/UIM coverage can help pay for your medical expenses, lost wages, and, in some cases, property damage. This is a crucial coverage, especially in states with a high percentage of uninsured drivers.

Medical Payments (MedPay) or Personal Injury Protection (PIP): MedPay covers medical expenses for you and your passengers, regardless of who is at fault for the accident. PIP, available in "no-fault" states, goes further by covering medical expenses, lost wages, and other related costs, even if you were not at fault. The specific availability and scope of these coverages depend on state regulations.

Rental Reimbursement: If your vehicle is damaged in a covered incident and is in the shop for repairs, this coverage helps pay for a rental car. This is particularly useful for individuals who rely on their vehicle for daily commuting or essential transportation. Limits are usually set per day and per incident.

Roadside Assistance: Many insurance providers, including those partnered with Costco, offer roadside assistance as an add-on. This can cover services like towing, battery jump-starts, tire changes, fuel delivery, and lockout assistance. This can be a valuable convenience, especially for drivers who frequently travel or are concerned about breakdowns.

New Car Replacement: For newer vehicles, this endorsement can provide funds to replace your car with a brand-new one of the same make and model if it's declared a total loss within a certain timeframe (e.g., the first year or two of ownership) and mileage limit. This goes beyond the actual cash value payout that standard comprehensive and collision coverage would provide.

Accident Forgiveness: Some policies may include accident forgiveness, which means your premium won't increase after your first at-fault accident. This is a valuable benefit that can help mitigate the financial impact of an unforeseen event. The specifics of accident forgiveness, such as eligibility and conditions, can vary.

When obtaining a quote from Costco's auto insurance program, it is essential to review these coverage options carefully. You can customize your policy by selecting the types of coverage you need and the limits that best suit your financial situation and risk tolerance. Consulting with a CONNECT agent can help you understand the nuances of each option and make informed decisions for your 2025 insurance needs.

Understanding Deductibles and Limits

Deductibles and limits are two of the most critical components of an auto insurance policy, directly influencing both your coverage and your premium. Understanding how they work is essential for tailoring a policy that offers adequate protection without being excessively expensive.

Limits: Limits refer to the maximum amount your insurance company will pay for a covered loss. For liability coverage, limits are typically expressed as three numbers (e.g., 100/300/50). The first number represents the maximum amount the insurer will pay for bodily injury to one person in an accident. The second number is the maximum total payout for bodily injury to all individuals in an accident. The third number is the maximum amount the insurer will pay for property damage in an accident. Choosing appropriate limits is crucial. While state minimums are often low, they may not be sufficient to cover the costs of a serious accident. Many financial experts in 2025 recommend higher liability limits, such as $100,000/$300,000/$100,000 or more, to safeguard your assets.

For collision and comprehensive coverage, the "limit" is essentially the actual cash value (ACV) of your vehicle at the time of the loss, minus your deductible. This means the insurer will pay up to the market value of your car, not necessarily what you paid for it or what it would cost to buy a new one.

Deductibles: A deductible is the amount of money you agree to pay out-of-pocket before your insurance company starts paying for a covered claim. Deductibles primarily apply to collision and comprehensive coverage. For example, if you have a $500 deductible and your car sustains $3,000 in collision damage, you will pay the first $500, and the insurance company will pay the remaining $2,500.

Choosing a deductible involves a trade-off. A higher deductible generally leads to lower premium payments because you are taking on more of the financial risk yourself. Conversely, a lower deductible means higher premiums but less out-of-pocket expense when you file a claim. It's important to select a deductible that you can comfortably afford to pay in the event of an accident or other covered loss. Many drivers opt for a $500 or $1,000 deductible for collision and comprehensive coverage.

When you get a quote from Costco's auto insurance program, you will be presented with various options for limits and deductibles. Carefully consider your financial situation, the value of your vehicle, and your risk tolerance when making these selections. It's a good practice to review these choices periodically, especially if your circumstances change.

Costco Auto Insurance Benefits and Discounts

One of the primary draws of the Costco auto insurance program is the potential for exclusive benefits and discounts available to Costco members. These incentives are designed to add value and make the insurance offering more attractive compared to non-affiliated options. While specific offers can vary by state and may change over time, several common benefits and discounts are often highlighted.

Costco Member Discounts: The most direct benefit is often a specific discount applied to the premium simply for being a Costco member. This discount can vary but is a tangible financial advantage. This is a direct result of the partnership, leveraging Costco's membership base to offer reduced rates.

Bundling Discounts: If you have multiple vehicles insured with CONNECT, or if you bundle your auto insurance with other insurance products offered through the program (like homeowners or renters insurance), you may be eligible for significant discounts. Bundling is a common practice that insurers use to encourage customer loyalty.

Safe Driver Discounts: Many insurance providers offer discounts to drivers with a clean driving record. This can include discounts for having no accidents or moving violations for a certain period (e.g., three or five years). Some programs may also offer telematics-based discounts, where a device or app monitors your driving habits (e.g., speed, braking, mileage) and rewards safe driving.

Good Student Discount: For households with young drivers, a "good student" discount can be available if the student maintains a certain grade point average. This encourages academic achievement and rewards responsible behavior.

Vehicle Safety Features: Discounts may be available for vehicles equipped with specific safety features, such as anti-lock brakes, airbags, daytime running lights, or anti-theft devices. These features can reduce the likelihood or severity of accidents and theft.

Low Mileage Discount: If you drive less than a certain number of miles per year, you might qualify for a discount. This is particularly relevant for individuals who work from home, use public transportation, or have a second vehicle that is rarely used.

Newer Vehicle Discounts: In some cases, insuring a newer vehicle with advanced safety features might qualify for specific discounts.

Payment Discounts: Discounts may be offered for paying your premium in full upfront or for setting up automatic payments from a checking account. These methods reduce administrative costs for the insurer and can be passed on as savings.

Exclusive Member Perks: Beyond discounts, the program might include exclusive benefits. These could range from enhanced roadside assistance to accident forgiveness or special endorsements tailored for Costco members. For instance, some programs offer new car replacement coverage or better rental car reimbursement rates.

When you get a quote, it's crucial to ask about all available discounts and benefits. The representative from CONNECT should be able to detail which ones apply to your situation. Taking full advantage of these offers can significantly reduce your overall insurance costs, making the Costco auto insurance program a more compelling option.

Understanding the Costco Member Advantage

The "Costco Member Advantage" in auto insurance refers to the specific benefits and potential cost savings that Costco members can access through the partnership with CONNECT and American Family Insurance. This advantage is multifaceted, stemming from several factors:

Group Purchasing Power: By offering insurance to its vast membership base, Costco effectively aggregates a large pool of potential customers. This collective buying power can be leveraged to negotiate more favorable rates and terms with the insurance underwriter (American Family Insurance). The insurer benefits from a predictable stream of business, and this benefit is ideally passed on to the members through lower premiums.

Exclusive Discounts: As mentioned, Costco members often receive specific discounts not available to the general public. These are loyalty-based incentives designed to reward members for choosing the affiliated insurance program. These can include a base membership discount, as well as other savings that are only accessible through the Costco channel.

Curated Coverage Options: The program is designed to offer coverage that is relevant and valuable to the average Costco member. While standard options are available, there might be specific endorsements or features that are particularly attractive to this demographic, such as enhanced roadside assistance or specialized coverage for certain vehicle types popular among members.

Streamlined Process: For many Costco members, the convenience of obtaining insurance through a trusted brand is a significant advantage. The process is often simplified, with dedicated channels for quotes and customer service. This reduces the time and effort typically required to shop for insurance.

Potential for Better Value: When combining the exclusive discounts, potential group savings, and the reliability of a reputable insurance underwriter like American Family Insurance, the Costco auto insurance program can offer a strong value proposition. This means getting comparable or even better coverage for a lower price than might be found elsewhere.

It is important to remember that the "advantage" is not guaranteed for every member in every situation. Premiums are highly individualized, based on a multitude of factors. However, for many Costco members, exploring this option is a worthwhile endeavor, as it has the potential to yield significant savings and added benefits. The key is to compare the final quote and coverage details with other providers to confirm that the Costco program is indeed the best fit.

Getting a Quote from Costco Auto Insurance

Obtaining a quote for auto insurance through Costco's program is a straightforward process designed for convenience. Whether you're a long-time Costco member or considering joining, here's a step-by-step guide to help you navigate the quoting process for 2025:

Step 1: Verify Your Eligibility

Before you begin, ensure you have an active Costco membership. While you might be able to get a preliminary quote without one, you will likely need a membership to purchase a policy and receive member-exclusive benefits. Also, confirm that Costco's auto insurance program is available in your state. You can usually find this information on the Costco Services website or by contacting them directly.

Step 2: Gather Necessary Information

To get an accurate quote, you'll need to have the following information readily available:

• Personal Information: Your name, address, date of birth, driver's license number, and marital status.
• Vehicle Information: For each vehicle you want to insure, you'll need the make, model, year, VIN (Vehicle Identification Number), safety features, and any anti-theft devices.
• Driving History: Information about all drivers in your household, including their driving records (accidents, violations), years of driving experience, and any specific driving courses completed.
• Current Insurance Information: Details about your current auto insurance policy, including coverage types, limits, and deductibles. This helps in comparing apples to apples.
• Desired Coverage: Think about the types of coverage you need (liability, collision, comprehensive, etc.) and the limits and deductibles you prefer.

Step 3: Initiate the Quote Process

There are typically a few ways to get a quote:

• Online: The most common method is through the dedicated Costco Services website or the CONNECT by American Family Insurance portal. Look for a "Get a Quote" or "Auto Insurance" section. You'll likely be guided through an online application form.
• Phone: You can also call a toll-free number to speak with a licensed insurance agent who can assist you with the quoting process. This is a good option if you have many questions or prefer a more personal interaction.
• In-Person (Less Common): While less frequent for insurance, some Costco locations might have information booths or representatives who can guide you to the online or phone options.

Step 4: Complete the Application

Fill out the online form or provide the information to the agent accurately and completely. Be honest about your driving history and vehicle usage, as any misrepresentation can lead to policy cancellation or claim denial. The system or agent will use this information to assess your risk and calculate your premium.

Step 5: Review Your Quote and Coverage Options

Once you submit your information, you will receive a personalized quote. This quote will detail the different coverage options available, including their limits, deductibles, and premiums. Carefully review this document:

• Compare Coverage: Ensure the coverage levels match what you need and what you currently have, or what you deem sufficient for your protection.
• Identify Discounts: Look for all the discounts that have been applied. If you believe you qualify for a discount that isn't listed, ask about it.
• Understand the Benefits: Note any exclusive Costco member benefits or endorsements included in the policy.
• Check the Total Cost: Compare the total premium with your current insurance and other quotes you may have gathered.

Step 6: Ask Questions and Clarify Doubts

Don't hesitate to ask the agent or consult the online resources for clarification on any aspect of the quote or policy. Understanding your coverage is paramount. Key questions might include:

• What are the specific terms of the accident forgiveness policy?
• What is the claims process like?
• Are there any additional fees or surcharges not included in the initial quote?
• What are the renewal terms and potential for premium increases at renewal?

Step 7: Make a Decision and Purchase (Optional)

After thoroughly reviewing your quote and comparing it with other options, you can decide whether to proceed with purchasing the policy. If you choose to move forward, the agent or online system will guide you through the final steps of setting up your policy, including payment arrangements and policy effective dates.

The quoting process is typically free and does not obligate you to purchase insurance. It's a valuable tool for understanding your potential savings and coverage through the Costco program in 2025.

Comparing Costco Auto Insurance to Competitors

When considering auto insurance, it's always wise to compare your options. Costco's auto insurance program, through CONNECT and American Family Insurance, offers a compelling package, but how does it stack up against other major insurance providers in 2025? The comparison involves looking at several key factors:

1. Price: This is often the most significant factor for consumers. Costco's program aims to offer competitive pricing due to its membership model and potential group discounts. However, premiums are highly individualized, depending on your location, driving record, vehicle, coverage needs, and the specific discounts you qualify for. It's possible that Costco's program could be cheaper, but it's not a universal guarantee. Competitors like GEICO, progressive, State Farm, and Allstate also offer a wide range of discounts and pricing structures that might be more advantageous for certain individuals.

2. Coverage Options: Costco's program generally offers standard coverage types: liability, collision, comprehensive, uninsured/underinsured motorist, medical payments, and optional add-ons like rental reimbursement and roadside assistance. Most major competitors provide a similar breadth of coverage. The nuances often lie in the specifics of endorsements, such as new car replacement or specialized accident forgiveness policies. Some insurers might offer more niche coverages or higher limits that aren't standard through the Costco program.

3. Discounts: Costco members benefit from exclusive discounts. However, other insurers also offer a robust array of discounts, including multi-car, multi-policy, safe driver, good student, low mileage, and vehicle safety feature discounts. The key is to see which provider offers the most applicable discounts for your specific situation. For example, if you're a homeowner with multiple cars and a student driver, you'll want to compare how each insurer applies these discounts.

4. Financial Strength and Reputation: American Family Insurance, the underwriter for Costco's program, is a well-regarded insurer with a strong financial rating (e.g., A from A.M. Best). This indicates its ability to pay claims. Major competitors like State Farm, GEICO, Progressive, and Allstate also have excellent financial strength ratings and established reputations. When comparing, look at independent ratings and customer reviews to gauge reliability.

5. Customer Service and Claims Handling: This is a crucial, albeit subjective, area. While Costco's program is backed by American Family Insurance, customer service experiences can vary. Online reviews and consumer satisfaction surveys (like those from J.D. Power) can offer insights into how well different insurers handle customer inquiries and process claims. Costco's brand reputation for customer satisfaction might extend to its insurance partners, but it's worth investigating CONNECT's specific service ratings.

6. Ease of Doing Business: Costco's program aims for simplicity and convenience, leveraging the familiar Costco brand. Many competitors also offer user-friendly online platforms, mobile apps, and dedicated customer service lines. The ease of getting a quote, managing your policy, and filing claims can be a deciding factor.

Comparison Table Example (Illustrative - 2025 Data Hypothetical):

Feature	Costco Auto Insurance (CONNECT/AmFam)	Competitor A (e.g., GEICO)	Competitor B (e.g., State Farm)
Average Premium (Hypothetical)	$$$	$$$	$$$$
Costco Member Discount	Yes (Exclusive)	No	No
Bundling Discount (Auto + Home)	Yes	Yes	Yes
Accident Forgiveness	Potentially Available	Available	Available
New Car Replacement	Potentially Available	Available	Available
Financial Strength Rating (A.M. Best)	A (American Family)	A++ (GEICO)	A++ (State Farm)
Customer Satisfaction (J.D. Power)	Good (CONNECT/AmFam)	Very Good	Excellent
Online Tools/App	Good	Excellent	Excellent

Key Takeaway for Comparison: To truly compare, you must get personalized quotes from Costco's program and several other leading insurers. Evaluate the total cost after all applicable discounts, the comprehensiveness of the coverage, the reputation of the underwriter, and the ease of service. Costco's program is a strong contender, especially for existing members, but it's essential to do your homework to ensure it's the best financial and practical choice for your specific needs in 2025.

Who is Costco Auto Insurance Best For?

Costco's auto insurance program, facilitated by CONNECT and underwritten by American Family Insurance, is not a one-size-fits-all solution. However, it can be an excellent choice for specific types of consumers. Identifying whether you fall into one of these categories can help you determine if it's worth prioritizing this option in your insurance search for 2025.

1. Existing Costco Members: This is the most obvious group. If you are already a Costco member, you have access to potential exclusive discounts and benefits that non-members do not. The convenience of dealing with a brand you already trust and use for other services can also be a significant draw. For these individuals, exploring Costco's auto insurance is a logical first step, as they may already be receiving value from their membership.

2. Value-Conscious Shoppers: Costco's brand is built on providing value and savings. If you are actively looking for ways to reduce your expenses without compromising on essential coverage, the Costco auto insurance program is worth investigating. The combination of potential group discounts, member-specific perks, and competitive rates from a reputable insurer can lead to significant savings.

3. Drivers with Good Records: Like most insurance programs, Costco's offering likely rewards safe driving. If you have a clean driving record with no accidents or violations, you are more likely to qualify for the best rates and discounts. This makes the program a strong contender for responsible drivers seeking to leverage their good history for lower premiums.

4. Those Seeking Bundled Savings: If you already have or are considering other insurance policies (such as homeowners or renters insurance) through Costco's affiliated providers, bundling your auto insurance can lead to substantial discounts. This integrated approach simplifies your insurance management and can offer considerable cost benefits.

5. Individuals Who Value Convenience: For some, the process of shopping for insurance can be daunting. Costco's program offers a streamlined approach, often with easy online quoting and dedicated customer support. If you appreciate a simplified and familiar process, this program might appeal to you.

6. Drivers in States Where It's Competitive: Insurance rates and program competitiveness vary significantly by state. In some states, Costco's auto insurance program may offer particularly attractive pricing and benefits due to local market conditions and the specific agreements in place. It's essential to get a personalized quote to see how it compares in your specific geographic area.

Conversely, it might not be the best fit for:

• Drivers with poor driving records: While all insurers assess risk, those with multiple accidents or violations might find better options with specialized high-risk auto insurance providers.
• Individuals seeking highly customized or niche coverage: If you drive a rare classic car, a heavily modified vehicle, or need very specific commercial insurance, a specialized insurer might be a better choice.
• Non-Costco members: The primary advantage of the program is for Costco members. If you don't have a membership, the benefits are significantly reduced or non-existent.

Ultimately, the best way to determine if Costco's auto insurance is right for you is to get a personalized quote and compare it directly with other leading insurance providers in your area. Consider not just the price but also the coverage details, the reputation of the underwriter, and the quality of customer service.

Potential Drawbacks of Costco Auto Insurance

While Costco's auto insurance program offers numerous advantages, particularly for its members, it's essential to be aware of potential drawbacks. Understanding these limitations can help you make a more informed decision and avoid potential dissatisfaction. As with any insurance product, the "best" option is subjective and depends on individual circumstances.

1. Membership Requirement: The most significant prerequisite is having an active Costco membership. If you are not a member, you cannot fully benefit from the program, and the value proposition diminishes considerably. For individuals who do not shop at Costco or see value in a membership, this program is not an option.

2. Limited Availability: Costco's auto insurance program is not available in all U.S. states. While it covers a majority of the population, if you reside in a state where the program is not offered, you won't be able to access it. This geographical limitation restricts its applicability.

3. Underwriting by American Family Insurance: While American Family Insurance is a reputable company, it's crucial to remember that they are the underwriter. This means that your experience with claims, customer service, and policy management will be with American Family Insurance, not Costco directly. If you have had negative experiences with American Family Insurance in the past, or if their service ratings are not to your liking, this could be a drawback.

4. Not Always the Cheapest: While the program aims to offer competitive pricing and exclusive discounts, it is not guaranteed to be the cheapest option for everyone. Premiums are highly personalized. In some cases, other insurers might offer lower rates due to different discount structures, risk assessments, or market strategies that better align with your profile. It is imperative to compare quotes from multiple providers.

5. Potential for Less Flexibility in Coverage: Although standard coverage options are available, some specialized or highly customized insurance needs might not be fully met by the program. For instance, if you own a rare classic car or a heavily modified vehicle, you might find more tailored solutions with insurers specializing in those niches.

6. Customer Service Experience: While Costco generally has a reputation for excellent customer service, the actual insurance service is handled by CONNECT/American Family Insurance. Customer reviews for insurance companies can be mixed, and experiences with claims handling, policy adjustments, or general inquiries can vary. It's advisable to research the specific customer service ratings for American Family Insurance's auto insurance division.

7. Potential for Premium Increases at Renewal: Like all insurance policies, premiums are subject to change upon renewal. While this is standard across the industry, some policyholders might experience unexpected increases, especially if market conditions change or if their personal circumstances (e.g., driving record) have been affected. It's important to budget for potential fluctuations.

8. Focus on Standard Vehicles: The program is primarily designed for standard passenger vehicles. If you drive a commercial vehicle, a high-performance exotic car, or a vehicle with extensive modifications, you may find that this program is not suitable or offers limited options.

When considering Costco's auto insurance, weigh these potential drawbacks against the benefits. A thorough comparison with other insurers, taking into account your specific needs and circumstances, is the best way to ensure you choose the most suitable policy.

Making a Claim with Costco Auto Insurance

When you need to file an auto insurance claim, the process can be stressful. Understanding how to do so with Costco's auto insurance program, which is handled by CONNECT and underwritten by American Family Insurance, is crucial. The process is designed to be as smooth as possible, leveraging the established procedures of American Family Insurance.

Step 1: Ensure Safety and Document the Scene

If you've been involved in an accident, your immediate priority is safety. Move vehicles to a safe location if possible, check for injuries, and call for emergency services if needed. If it's safe to do so, document the scene. Take photos of the damage to all vehicles involved, the surrounding area, and any relevant road conditions or signs. Exchange contact and insurance information with other drivers involved.

Step 2: Report the Incident Promptly

Contact CONNECT (or American Family Insurance directly) as soon as possible to report the incident. There are typically several ways to do this:

• Online: Most insurance companies, including American Family Insurance, offer online claim filing through their website or a dedicated app. This is often the fastest and most convenient method.
• Phone: You can call the claims hotline for American Family Insurance. This number is usually available 24/7. Speaking with a claims representative can be helpful if you have immediate questions or need guidance.
• Via Your Agent: If you worked with a specific agent during the quoting or purchasing process, you can also contact them for assistance in initiating a claim.

Step 3: Provide Necessary Information

When reporting the claim, be prepared to provide details about the incident, including:

• Your policy number.
• Date, time, and location of the incident.
• A description of what happened.
• Information about any other vehicles or individuals involved (names, contact info, insurance details).
• Details of any injuries or property damage.
• Police report number, if applicable.

Step 4: Claim Investigation and Assessment

Once the claim is filed, American Family Insurance will assign a claims adjuster to your case. The adjuster will investigate the incident, review the information you provided, and may contact other parties involved or witnesses. They will assess the damage to your vehicle and determine liability based on the circumstances of the accident and your policy coverage.

Step 5: Repair Process and Payment

If your vehicle is damaged, the adjuster will work with you to determine the repair process. You may have the option to choose your own repair shop, or the insurance company may recommend preferred shops within their network. If you use a preferred shop, they often handle the billing directly with the insurer. If you choose your own shop, you may pay the shop directly and then seek reimbursement from the insurer, or the insurer may pay the shop directly after you pay your deductible.

If your vehicle is deemed a total loss, the insurance company will offer you a settlement based on the actual cash value of your vehicle at the time of the loss, minus your deductible. You will then have the option to accept the settlement and purchase a replacement vehicle.

Step 6: Follow Up

Keep communication lines open with your claims adjuster. Ask questions about the process, timelines, and any documentation you need to provide. Following up regularly can help ensure your claim is processed efficiently.

Key Considerations:

• Deductible: Remember that you will be responsible for paying your deductible amount to the repair shop or as part of the settlement for a total loss.
• Rental Car: If your policy includes rental reimbursement coverage, inform the adjuster so arrangements can be made for a rental car while yours is being repaired.
• Accident Forgiveness: If your policy includes accident forgiveness, ensure this is communicated to the claims department to avoid an immediate premium increase.

By understanding these steps, you can navigate the claims process with greater confidence when dealing with Costco's auto insurance program.

Costco Auto Insurance Customer Reviews and Ratings

Customer reviews and ratings are invaluable for assessing the real-world performance of an insurance provider. When evaluating Costco's auto insurance program, it's important to look at the feedback related to CONNECT and American Family Insurance, as they are the entities handling the insurance policies and claims. While Costco itself enjoys a high reputation for customer satisfaction, the insurance arm's performance is judged separately.

General Sentiment:

Reviews for CONNECT (powered by American Family Insurance) in the context of Costco's program often highlight a mix of positive and negative experiences, which is typical for most large insurance providers. Many Costco members are drawn to the program by the promise of savings and exclusive benefits. When these expectations are met, and the service is efficient, satisfaction tends to be high.

Positive Feedback often includes:

• Competitive Pricing: Many policyholders report that they were able to secure lower premiums compared to their previous insurers, especially after applying Costco member discounts and other applicable savings.
• Ease of Getting a Quote: The online quoting process is frequently cited as user-friendly and efficient, allowing members to quickly assess their potential savings.
• Good Customer Service (for some): Some customers report positive interactions with customer service representatives, finding them helpful and responsive.
• Valuable Discounts: The availability of exclusive Costco member discounts is a significant plus for many.

Negative Feedback often includes:

• Claims Handling Issues: As with many insurers, some policyholders have reported challenges with the claims process, citing delays, perceived low settlement offers, or difficulties in communication with adjusters.
• Customer Service Inconsistencies: While some have positive experiences, others have encountered unhelpful or unresponsive customer service, leading to frustration.
• Premium Increases: Some customers have experienced significant premium increases upon renewal, sometimes finding that other insurers offer better rates at that point.
• Limited Availability of Specific Features: In some instances, policyholders may find that certain coverage options or endorsements are not available or are less comprehensive than what competitors offer.

Independent Ratings and Surveys:

To get a more objective view, it's helpful to consult independent rating agencies and consumer satisfaction surveys:

• A.M. Best: American Family Insurance generally receives strong financial strength ratings from A.M. Best (e.g., A), indicating its ability to meet its financial obligations, including paying claims. This is a critical factor for insurer reliability.
• J.D. Power: J.D. Power conducts annual studies on auto insurance customer satisfaction. While specific ratings for the "Costco Auto Insurance Program" might not be isolated, the performance of American Family Insurance in these studies provides insight. These studies typically measure factors like overall satisfaction, claims, policy offerings, price, and billing. It's important to check the latest J.D. Power Auto Insurance Study for the most current rankings of American Family Insurance.
• Consumer Reports: Consumer Reports also periodically surveys its readers about their experiences with various insurance companies, including auto insurance.
• Better Business Bureau (BBB): The BBB provides ratings and reviews for businesses, including insurance companies. You can check the BBB profile for American Family Insurance to see complaint history and resolution rates.

In Summary:

While Costco's auto insurance program, through CONNECT and American Family Insurance, can offer excellent value and savings, especially for existing Costco members, it's not immune to the common challenges faced by large insurance providers. Potential customers should read recent reviews, consult independent ratings, and most importantly, obtain a personalized quote to compare its offerings directly with other insurers in their specific market for 2025.

Frequently Asked Questions About Costco Auto Insurance

Here are answers to some common questions about Costco's auto insurance program, powered by CONNECT and American Family Insurance, to help you make an informed decision in 2025.

Q1: Does Costco provide auto insurance directly?

No, Costco does not directly provide auto insurance. Instead, it partners with insurance providers to offer auto insurance to its members. Currently, the program is facilitated by CONNECT, powered by American Family Insurance.

Q2: Do I need a Costco membership to get a quote or buy insurance?

You can often get a quote without a Costco membership to see potential pricing. However, to purchase a policy and receive the full benefits and exclusive discounts associated with the program, an active Costco membership is typically required.

Q3: Is Costco auto insurance available in all states?

No, the program is not available in every U.S. state. Availability can vary by location. It is essential to check if the program is offered in your specific state when you get a quote.

Q4: Who underwrites the Costco auto insurance policies?

The policies offered through the Costco auto insurance program are underwritten by American Family Insurance or its affiliates. CONNECT is the brand through which these policies are offered to Costco members.

Q5: What types of coverage are available?

The program typically offers a comprehensive range of coverage options, including liability (bodily injury and property damage), collision, comprehensive, uninsured/underinsured motorist, medical payments, and optional add-ons like rental reimbursement and roadside assistance.

Q6: Are there special discounts for Costco members?

Yes, a significant advantage of the program is the availability of exclusive discounts and benefits specifically for Costco members. These can include a membership discount, as well as other savings applicable to safe drivers, multi-car policies, and more.

Q7: How does Costco auto insurance compare in price to other insurers?

Pricing is highly individualized. While Costco's program aims to offer competitive rates due to member discounts and group purchasing power, it's not guaranteed to be the cheapest for everyone. It is recommended to get personalized quotes from Costco's program and several other leading insurers to compare costs and coverage effectively.

Q8: How do I file a claim?

Claims are handled by American Family Insurance. You can typically file a claim online through their website or app, or by calling their dedicated claims hotline. You will need your policy number and details about the incident.

Q9: What is the financial strength of the underwriter?

American Family Insurance generally holds strong financial strength ratings from agencies like A.M. Best (often rated 'A'), indicating its ability to pay claims and meet its financial obligations.

Q10: Can I bundle auto insurance with other policies?

Yes, bundling auto insurance with other policies like homeowners or renters insurance through the affiliated providers can often lead to additional discounts. This is a common way to save money on insurance.

Q11: What if I have a complaint about my insurance policy or service?

Complaints should be directed to CONNECT or American Family Insurance directly. You can contact their customer service or claims department. If unresolved, you can also file a complaint with your state's Department of Insurance.

Q12: Is accident forgiveness offered?

Accident forgiveness may be an available option or endorsement, depending on your policy and state. It's best to inquire about this specific benefit when obtaining your quote.

By addressing these common questions, we aim to provide clarity on Costco's auto insurance offering and empower you to make an informed decision.

Conclusion

In conclusion, the answer to "Does Costco Provide Auto Insurance?" is a definitive yes, through its strategic partnership with CONNECT, powered by American Family Insurance. For many Costco members in 2025, this program presents a compelling opportunity to secure potentially cost-effective auto insurance coupled with exclusive member benefits. The program leverages the