Costco Car Insurance in 2025: Honest Review, Coverage, Discounts & Value
If you’re a Costco member looking for ways to save on auto insurance, you’ve probably come across Costco car insurance through CONNECT, powered by American Family Insurance. It’s exclusive, potentially cost-effective, and backed by one of the largest insurers in the U.S.
But is it right for you? In this in-depth guide, we cover everything you need to know — from pricing and coverage to discounts, real reviews, and whether the value stacks up in 2025.
What Is Costco Car Insurance?
Costco doesn’t technically offer its own insurance. Instead, it partners with CONNECT, a subsidiary of American Family Insurance, to provide members with discounted auto coverage. This model allows Costco to leverage its buying power to secure benefits for members.
Importantly, American Family Insurance holds a strong A rating from A.M. Best, indicating excellent financial strength. That means Costco insurance customers can trust the company to pay claims reliably.
According to the NAIC Complaint Index, CONNECT receives an above-average number of complaints relative to its market size, which suggests some service limitations. Furthermore, the Better Business Bureau (BBB) currently gives CONNECT a rating of 1.27 out of 5 — a clear signal that customer service may not always meet expectations.
How Costco Car Insurance Works
To access Costco car insurance, you must be a Costco member. Coverage is available through CONNECT by American Family, and quotes can be obtained online or by calling their customer service.
Key Details:
- Only available to Costco members
- Available in most, but not all, U.S. states
- Executive members may receive additional perks such as lifetime policy renewability
- No Costco-branded service portal — all account management is through CONNECT
Coverage Options with Costco Insurance
Costco offers a comprehensive set of auto insurance options — both standard and extra — through CONNECT. This includes:
Standard Coverage:
- Liability insurance
- Collision coverage
- Comprehensive coverage
- Uninsured/underinsured motorist protection
- Medical payments or PIP
Exclusive Member Perks:
- Roadside Assistance: Included at no extra cost
- Glass Repair Deductible Waiver: No charge for windshield repairs
- Accident Travel Expense Coverage: Reimbursement for costs after a travel-related accident
These additional benefits offer a safety net that’s rare at this price point, especially for Executive members.
How Much Does Costco Car Insurance Cost?
Costco car insurance is known for offering one of the most competitive price points on the market. On average, members save around $300–$600 annually compared to national averages.
Cost Comparison:
| Insurance Provider | Avg. Annual Premium |
|---|---|
| Allstate | $2,022 |
| Farmers | $2,790 |
| GEICO | $1,494 |
| Progressive | $1,482 |
| USAA | $1,214 |
| Costco (CONNECT) | $1,068 |
This makes Costco auto insurance an attractive option for drivers seeking savings without sacrificing core protection.
Discount Programs for Costco Members
CONNECT offers several ways for Costco members to save even more on their auto insurance.
Available Discounts:
- Multi-policy discount (auto + home/condo/renters)
- Multi-vehicle discount
- Good driver discount
- Good student discount
- Garaging discount (if you park your car in a garage)
- Vehicle safety feature discount
- Continuous insurance discount
Bundling auto and home policies through CONNECT can lead to savings of 5%–15%, and some states offer even more depending on driving history and credit.
Pros of Costco Car Insurance
Here’s what makes Costco car insurance a strong option:
- ✅ Affordable premiums vs. national average
- ✅ Access to CONNECT by American Family coverage options
- ✅ Roadside assistance included for free
- ✅ Bundling discounts with other insurance types
- ✅ Glass repair waiver saves on out-of-pocket costs
- ✅ Lifetime renewability for Executive Members
Cons of Costco Car Insurance
While Costco auto insurance is cost-effective, it’s not without drawbacks:
- ❌ Must be a Costco member
- ❌ No direct Costco interface for policy management
- ❌ Service varies by state
- ❌ Low BBB rating for CONNECT (1.27/5)
- ❌ Not ideal for those wanting digital-first management tools
Customer Reviews and Ratings
Customer satisfaction varies based on location and personal experience. Here’s how CONNECT (Costco’s insurance partner) stacks up:
Review Summary:
- Trustpilot: 4.5/5 (for American Family Insurance)
- Better Business Bureau: 1.27/5
- NAIC Complaint Index: Above-average complaints
- JD Power Auto Claims Study: Above average
While pricing and product value are strong, many customers express concerns about claim handling speed and customer service experience.
Real Customer Testimonial
“As a Costco member, I switched to CONNECT for auto insurance and saved over $400 a year. I haven’t had to file a claim yet, but setting up the policy was simple and straightforward.”
— Sarah M., Atlanta, GA
Frequently Asked Questions (FAQs)
What company does Costco use for insurance?
Costco partners with CONNECT, a subsidiary of American Family Insurance.
Is Costco car insurance cheaper?
Yes. In most cases, Costco members receive rates that are $300–$600 less per year than national averages.
Can I get Costco car insurance without a membership?
No. You must be an active Costco member to be eligible for this coverage.
Does Costco insurance include roadside assistance?
Yes. Roadside assistance is built into most policies at no additional cost.
Is it available in every state?
No. Availability varies by state. Check with CONNECT to see if it’s offered in your area.
Does Costco offer multi-policy discounts?
Absolutely. You can bundle auto with home, renters, or condo insurance for additional savings.
Is Costco Car Insurance Worth It in 2025?
If you’re already a Costco member, value affordability, and don’t need top-tier digital tools or customer service, Costco car insurance is a great option. With strong financial backing from American Family, plenty of discounts, and perks like free roadside assistance, it’s ideal for:
- Safe drivers
- Families with multiple vehicles
- Budget-conscious individuals
- Those bundling multiple policies
However, if customer service is your top concern or you live in a state where CONNECT has a weak presence, you may want to shop around.
Final Verdict
Costco car insurance delivers exceptional value for members — especially those who prioritize savings and straightforward coverage. As long as you’re okay with limited digital tools and varying service reviews, it stands out as one of the more affordable and flexible auto insurance options in 2025.