Costco Auto Insurance Review [2024]
Connect auto insurance, in collaboration with Costco, offers competitive rates and diverse coverage options for drivers seeking affordability and flexibility.
Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Automatio...
Insurance Operations Specialist
UPDATED: Apr 23, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Apr 23, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Costco Insurance
Average Monthly Rate For Good Drivers
$117A.M. Best Rating:
A+Complaint Level:
LowPros
- Cost Savings for Costco Members
- Diverse Coverage Options
- Lifetime Renewability
Cons
- Limited Availability
- Membership Requirement
- No Mobile App
Costco doesn’t technically sell its own insurance brand, but you can get discounts on Connect insurance — owned by American Family — if you are a Costco member. In addition, other perks come with Connect’s car insurance for Costco members, such as lifetime renewability.
However, Costco’s insurance is not available in all states, so you may be unable to get Costco car insurance in your area. If you’re considering buying cheap auto insurance through Costco, our Costco auto insurance review goes over all the important details.
Read on to learn about Costco’s rates, coverages, discounts, and more. You can also visit our American Family auto insurance review to learn more about the parent company.
American Family Insurance Coverage Options
Navigating the roads comes with its uncertainties, which is why having the right auto insurance coverage is crucial. Connect auto insurance, offered through Costco, understands the diverse needs of drivers and provides a comprehensive array of coverage options. Whether you’re looking for basic protection or additional safeguards, Connect has you covered.
- Bodily Injury Liability Insurance: If you cause an accident that injures another person, bodily injury liability insurance will help pay their medical bills.
- Collision Insurance: If your car gets damaged from a collision with another vehicle or a collision with an object like a mailbox, collision auto insurance coverage will pay for your repairs.
- Comprehensive Insurance: If your car gets damaged from an animal collision, weather, or vandalism, comprehensive auto insurance coverage will pay for your repairs.
- Gap Insurance: If your car gets totaled, gap insurance will pay the difference between your car’s value and the amount left on your lease or loan.
- Medical Payments (MedPay) Insurance: If you or your passengers get injured in an accident, MedPay will help pay for your medical bills.
- New Car Replacement Insurance: If you have a new car that gets totaled, new car replacement insurance will replace your car with the same make and model if your car is under a year old or has less than 15,000 miles on it.
- Personal Injury Protection (PIP) Insurance: If you or your passengers get injured in an accident, personal injury protection insurance coverage will help pay for your medical bills and things like lost wages and child care.
- Property Damage Liability Insurance: If you cause an accident that damages a person’s property, whether their car or fence, property damage liability insurance will help pay for their repair bills.
- Rental Car Insurance: If your car is in the shop for an extended period of time, rental car insurance will help pay for your rental car until your car gets repaired.
- Roadside Assistance Insurance: If your car breaks down, Connect Insurance roadside assistance will help with several basic fixes, such as jumping your car or towing your car to the nearest repair shop.
- Uninsured Motorist Insurance: If a driver hits you and doesn’t have insurance, uninsured motorist insurance coverage will help pay for your accident bills.
So what is Connect missing? It doesn’t offer rideshare insurance or modified car insurance. So if you need these coverages, you will have to get insurance from a different company. However, Connect offers a great array of car insurance coverages for all other drivers beyond just the basic auto insurance coverages required by your state.
Costco Member Benefits
If you are a Costco member, you get a discount on Connect auto insurance when you apply if you provide your membership number. In addition, Costco executive members get the following perks with their Connect auto insurance policy:
- Lifetime Renewability: Costco executive members have a lifetime renewability guarantee, which means their policy won’t get canceled after minor accidents or minor traffic violations.
- Roadside Assistance: Costco executive members get 24/7 roadside assistance with their auto insurance policy.
Costco’s advertisement also says that, on average, Costco members save $587 a year by switching to Connect with their Costco membership.
Other Insurance Options at Costco
Connect by American Family sells more than just auto insurance, which Costco members can also save on. Connect also offers the following insurance coverages:
- ATV Insurance
- Boat Insurance
- Business Insurance
- Classic Car Insurance
- Condo Insurance
- Flood Insurance
- Home Insurance
- Motorcycle Insurance
- Renters Insurance
- Rental Property Insurance
- RV Insurance
- Umbrella Insurance
Connect also offers a multi-policy discount if you purchase more than one type of insurance. Some possible combinations for this discount include auto and home insurance or auto and umbrella insurance. You can also bundle auto, home, and umbrella for a bigger discount.
Read more: Costco Homeowners Insurance Review
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American Family Insurance Rates Breakdown
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| Driver Profile | Costco Auto | National Average |
|---|---|---|
| Clean Record | $221 | $119 |
| 1+ Ticket | $267 | $147 |
| 1+ Accident | $342 | $173 |
| DUI | $442 | $209 |
| Poor Credit | $380 | $205 |
*monthly rates are based on an average of minimum and full coverage for a 45-year-old male driver
While Costco members earn a discount when they purchase Connect auto insurance, this doesn’t necessarily mean Connect will be the cheapest option of an insurance company for drivers.
However, Connect’s auto insurance rates tend to be below the national average rates, as shown in the table below showing Connect’s average rates for minimum liability insurance coverage and full coverage auto insurance.
Average Costco Auto Insurance Rates vs. the National Average
| Coverage Type | Costco Auto Insurance | National Average |
|---|---|---|
| Full Coverage | $87 | $119 |
| Minimum Liability | $34 | $45 |
Since these are just basic averages for car insurance policies, we want to look more into how Connect’s car insurance rates change based on age, driving record, and more — this will better estimate whether Connect’s rates are cheap or expensive for most drivers.
Rates for Teenagers and Young Adults
Younger drivers tend to pay the most for car insurance, even if they have clean driving records, as their inexperience makes them more likely to crash and file a claim. However, once drivers age past 25, they will see their rates decrease if they keep a clean driving record.
Look at the table below to see how much Connect charges on average for young drivers with clean driving records.
Average Full Coverage Auto Insurance Rates for Young Drivers
| Age | Costco Auto Insurance Rates | National Average |
|---|---|---|
| 16-year-old male with a clean record | $471.60 | $618.49 |
| 16-year-old female with a clean record | $450.80 | $566.05 |
| 18-year-old male with a clean record | $383.45 | $501.45 |
| 18-year-old female with a clean record | $332.37 | $416.15 |
| 25-year-old male with a clean record | $111.97 | $149.61 |
| 25-year-old female with a clean record | $108.01 | $138.42 |
Connect’s rates are below the national average, which is good. For example, a 16-year-old male with a clean record will pay an average of $471 per month, which is below the national average of $618 per month.
However, we want to note that if these rates seem high, it’s because these average rates are for teenagers and young adults purchasing their own auto insurance policies. The cheaper option is for parents to add teenagers to the parents’ insurance policy.
If you are purchasing your own policy, you may be able to find cheaper rates at companies like State Farm, as its average rates are lower than Connect’s average rates for teenagers. You can read our State Farm auto insurance review to learn more about this car insurance company.
Rates for Adult Drivers
Adult drivers will see a decrease in auto insurance rates if they keep a clean driving record because they have more driving experience than teenagers and are less likely to crash due to inexperience. Take a look at the table below to see how much Connect charges on average for adult drivers with clean records.
Average Full Coverage Auto Insurance Rates for Adult Drivers
| Age | Costco Auto Insurance Rates | National Average |
|---|---|---|
| 30-year-old male with a clean record | $104.13 | $138.81 |
| 30-year-old female with a clean record | $100.45 | $128.44 |
| 45-year-old male with a clean record | $86.70 | $119.27 |
| 45-year-old female with a clean record | $88.72 | $119.47 |
| 55-year-old male with a clean record | $82.23 | $113.12 |
| 55-year-old female with a clean record | $84.15 | $113.31 |
Connect’s auto insurance rates are cheaper than the national average, which is good. In addition, since older adult drivers with clean records have proven for decades that they can drive safely, Connect charges drivers in their 50s with clean driving records less than drivers in their 30s.
Rates for Senior Drivers
Newly-retired senior drivers often have some of the cheapest rates as they no longer commute to and from work during rush hour, when most traffic crashes happen. Retired senior drivers also drive less, which means that they have reduced mileage that can earn them a discount on their auto insurance. Take a look at the table below to see the average auto insurance rates for senior drivers at Connect.
Average Full Coverage Auto Insurance Rates for Senior Drivers
| Age | Costco Auto Insurance Rates | National Average |
|---|---|---|
| 60-year-old male with a clean record | $78.52 | $109.57 |
| 60-year-old female with a clean record | $77.00 | $105.61 |
| 65-year-old male with a clean record | $84.87 | $116.75 |
| 65-year-old female with a clean record | $86.84 | $116.94 |
However, your rates may increase as you get older since insurance companies charge drivers in their 70s and 80s a little more. Older drivers see higher rates because of increased risks that come with age, such as decreased reaction time and worsening vision. Learn more about the top auto insurance providers for seniors.
Rates for Drivers With Traffic Tickets
Plenty of other factors go into determining a driver’s rates beyond just a driver’s age. A driver’s driving record is one of the biggest factors, as drivers with violations are considered more at risk of filing a claim in the future. Below, you can see how much Connect charges on average for drivers with a traffic ticket on their record.
Average Costco Auto Insurance Rates After a Traffic Ticket vs. the National Average
| Coverage Type | Costco Auto Insurance | National Average |
|---|---|---|
| Full Coverage | $109 | $147 |
| Minimum Liability | $43 | $56 |
Connect’s average rates are below the national average, even for drivers with a traffic ticket, which is good. Bear in mind, however, that these rates are for just one traffic ticket. So, you can expect higher rates if you have more than one traffic ticket on your record, especially if it is a more serious traffic violation.
Rates for Drivers With At-Fault Accidents
At-fault accidents will always raise a driver’s rates, as the insurance company will view them as riskier to insure and more likely to file a claim in the future. Below you can see how much Connect charges for drivers with at-fault accidents.
Average Costco Auto Insurance Rates After an Accident vs. the National Average
| Coverage Type | Costco Auto Insurance | National Average |
|---|---|---|
| Full Coverage | $134 | $173 |
| Minimum Liability | $53 | $66 |
Connect’s rates are below the national average for drivers with an at-fault accident, which is great. For example, a 45-year-old driver with an accident will pay about $136 per month for a full coverage policy if they have an at-fault accident on their driving record, which is roughly $40 cheaper per month than the national average. Learn about how long an accident stays on your record.
Rates for Drivers With a DUI
A DUI will often raise car insurance rates the most at a car insurance company, so drivers with a DUI should always shop around to see which insurance company offers the cheapest rates. Take a look at the table below to see how much Costco’s Connect insurance charges on average for drivers with a DUI on their record.
Average Costco Auto Insurance Rates After a DUI vs. the National Average
| Coverage Type | Costco Auto Insurance | National Average |
|---|---|---|
| Full Coverage | $150 | $209 |
| Minimum Liability | $60 | $81 |
Connect’s rates are below the national average. For example, a 45-year-old male driver with a DUI will pay about $60 less than the national average. However, remember that even though Connect has average rates below the average, they may not be the cheapest.
So if you have a DUI, we recommend shopping around to see if you can find savings on your car insurance policy. Learn about how long a DUI stays on your record.
American Family Insurance Discounts Available
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| Discounts | Costco Auto |
|---|---|
| Anti Theft | 13% |
| Good Student | 14% |
| Low Mileage | 11% |
| Paperless | 10% |
| Safe Driver | 13% |
| Senior Driver | 12% |
In addition to the discount you get at Connect for being a Costco member, there are also plenty of other auto insurance discounts you can also get to save on your auto insurance. These discounts are as follows:
- Costco Membership Discount: Exclusive savings for Costco members applying for Connect auto insurance.
- Multi-Policy Discount: Earn additional savings by bundling multiple insurance policies, such as auto and home insurance.
- Safe Driver Discounts: Rewards for maintaining a clean driving record, demonstrating safe and responsible driving habits.
- Good Student Discount: Discounts for students who maintain good academic performance, encouraging responsibility both on and off the road.
- Defensive Driving Course Discount: Savings for completing a defensive driving course, showcasing a commitment to safe driving practices.
- Vehicle Safety Features Discount: Discounts for vehicles equipped with safety features that reduce the risk of accidents.
- Anti-Theft Device Discount: Savings for vehicles equipped with anti-theft devices, enhancing security and reducing the risk of theft.
- Paperless Billing Discount: Incentives for opting for paperless billing, contributing to environmental sustainability while enjoying cost savings.
- Auto-Pay Discount: Encourages automatic payment setup, providing convenience for policyholders and additional savings.
In the world of auto insurance, saving on premiums is an added perk that comes with responsible choices and commitments. With Connect auto insurance through Costco, these commitments are not only recognized but rewarded.
From safe driving discounts to incentives for embracing technology, Connect ensures that your dedication to safety and security doesn’t just make you a responsible driver but also a savvy and budget-conscious one.
How American Family Insurance Ranks Among Providers
Connect auto insurance, facilitated through Costco, operates in a competitive landscape where several companies vie for the attention and patronage of insurance seekers. Here are some notable competitors in the auto insurance market:
- Geico: Well-known for its catchy advertising, Geico is a major player in the auto insurance industry. It’s recognized for competitive rates and a user-friendly online experience.
- Progressive: Progressive is known for its innovative approach, offering features like usage-based insurance (Snapshot) and a Name Your Price tool, allowing customers to tailor coverage to their budget.
- State Farm: As one of the largest insurers in the U.S., State Farm is recognized for its extensive network of agents, providing personalized service. They offer a variety of coverage options and discounts.
- Allstate: Allstate is notable for its comprehensive coverage options and features like Accident Forgiveness and Safe Driving Bonus, rewarding customers for accident-free driving.
- Nationwide: Nationwide is known for its range of insurance products, including auto insurance. They emphasize customer loyalty and offer features like Vanishing Deductible for safe drivers.
- USAA: While exclusively serving military members and their families, USAA is renowned for excellent customer service, competitive rates, and a range of financial products.
- Farmers: Farmers Insurance provides a diverse range of coverage options, including specialized policies for specific needs. They emphasize personalized service through a network of agents.
- Liberty Mutual: Liberty Mutual offers a variety of coverage options and discounts, including unique features like Better Car Replacement and Accident Forgiveness.
As consumers weigh their options in the auto insurance market, factors such as coverage options, pricing, customer service, and discounts become critical considerations. Each of these competitors has carved a niche with unique offerings, making the market dynamic and diverse.
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How to File a Claim at Costco
It is important that a company’s claim filing process is easy and quick. At Connect, you can file an auto insurance claim online or call Connect at 1-888-404-5365. You can also check the status of your claim or get assistance by emailing Connect at csc@connectbyamfam.com.
When filing your claim, you should be as thorough as possible to make sure your claim gets approved quickly. Connect will want the following information from you when you file your claim:
- Name, address, and policy number
- Name, address, phone number, and insurance information of any other involved drivers
- Name and numbers of any witnesses to the accident
- Police report, if one was filed
- Description of how, when, and where the accident happened
- Photos of the damages
A claims adjuster will work with you after you file the claim to confirm the accident details and how much damage occurred to the vehicle. Connect also allows you to choose any repair shop you want to get your car repaired, or you can ask for a recommendation for a repair shop if you aren’t sure where to go for repairs.
Costco Auto Insurance Digital and Technological Features
Mobile App Features and Functionality
As of the latest information, Connect auto insurance does not currently offer a mobile app. While this may be a consideration for those who prefer managing their insurance needs on-the-go, Connect compensates with a user-friendly website that allows customers to access their accounts, policy details, and initiate claims from their mobile browsers.
Online Account Management Capabilities
Connect provides a robust online platform for account management. Policyholders can log in to their accounts through the website to view policy details, make payments, and access important documents. The online account management system is intuitive and user-friendly, offering a seamless experience for customers to handle their insurance-related tasks conveniently.
Digital Tools and Resources
Although there isn’t a dedicated mobile app, Connect focuses on providing digital tools and resources through their website. Customers can access educational materials, FAQs, and use online calculators to understand their coverage needs. The online platform serves as a comprehensive resource hub, ensuring that customers have the information they need at their fingertips.
Frequently Asked Questions
Is Costco Auto Insurance available in all states?
Costco Auto Insurance, provided through Connect, is available in most states. However, there are some states where it may not be offered. It’s recommended to check with Connect or Costco for specific availability in your location.
What information do I need to provide when filing a claim?
When filing a claim, you’ll need to provide details about the incident, including the date, time, and location. Additionally, information about the parties involved and any relevant documentation, such as police reports, will be required.
What is the average processing time for claims with Connect?
Connect aims to process claims efficiently, and the processing time can vary based on the complexity of the claim. Generally, customers have reported a satisfactory turnaround time.
Can I track the status of my claim online?
Yes, Connect provides an online portal where you can log in to track the status of your claim, ensuring transparency and keeping you informed throughout the process.
Can I bundle other insurance coverages with Connect Auto Insurance through Costco?
Yes, Connect by American Family offers various insurance coverages beyond auto insurance. Costco members may be eligible for discounts by bundling multiple policies, such as home insurance or umbrella insurance.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Automatio...
Insurance Operations Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
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TammyNelson
Great auto insurance for Costco Members through Connect
Doggy
Awesome
flip2score7
am fam review
timtone
Unexpected charges
ely135
American Family tops any other insurance company
snoopyhugs18
When a 90-minute Meeting Saved Us $596!
DomMar35
Boss
ruthjahncoz
a bright point in a dark time
LillyM
Young but excited about Insurance!
KatieM
My AMFAM experience