Costco Auto Insurance Review (2024)

If you’re searching for the best car insurance company in your area and are a Costco member, you may want to consider Costco car insurance. Costco offers its members several car insurance options under the name CONNECT insurance.

Costco’s CONNECT insurance offers a variety of coverage options and discounts to its members. Unfortunately, some policies and auto insurance perks require an additional fee for nonmembers. Keep reading our Costco auto insurance review to learn more about the company.

What You Should Know About Ameriprise Auto & Home Insurance (Costco)

Costco’s CONNECT car insurance may be a good option for some people, but it depends on your needs. The company offers coverage options and opportunities for discounts that may appeal to some, but rates for insurance could be higher with CONNECT than with other companies.

Costco insurance reviews suggest the company needs to work on its claims process to improve customer satisfaction. Before purchasing a policy with Costco, you should find and compare rates from other auto insurance providers in your area to determine which company works best for you.

Benefits for Costco Members

Costco members are entitled to additional discounts and perks regarding a CONNECT car insurance policy. These benefits include the following:

• Lifetime renewability
• Various discounts on coverage
• Glass repair deductible waiver
• Stolen key coverage
• Accident travel expense

While individuals can purchase car insurance through Costco without being members, the benefits listed above are only available to Costco Executive members. A Costco Executive membership costs $120 a year.

Ameriprise Auto & Home Insurance (Costco) Insurance Coverage Options

CONNECT auto insurance policies are offered through the American Family Insurance Company. CONNECT by American Family Insurance provides the following coverage options to Costco members:

• Bodily injury liability
• Property damage liability
• Collision coverage
• Comprehensive coverage
• Uninsured/underinsured motorist coverage
• Medical payments
• Personal injury protection

In addition to these common types of auto insurance coverage, CONNECT offers add-on options for additional protection. These options include the following:

• New car replacement. Costco’s insurance will pay to replace your vehicle if it is totaled in an accident.
• GAP coverage. This coverage pays the difference between what your car is worth and what you owe on the loan.
• Rental car reimbursement. This coverage reimburses any fees you pay for a necessary rental vehicle after a covered event.
• Roadside assistance. CONNECT’s roadside assistance covers towing, spare tire installation, lockout services, and more.

If you’re looking for a robust auto insurance plan and add-ons to help you maintain peace of mind while on the road, you may want to look into CONNECT’s options.

Ameriprise Auto & Home Insurance (Costco) Insurance Rates Breakdown

The amount someone will pay for Costco car insurance varies based on many factors. But the average CONNECT auto insurance policy costs $1,068 per year.

Costco Car Insurance for Teens

Teenagers pay the highest rates for car insurance in many cases. CONNECT car insurance costs anywhere from 27% to 35% more than the national average.

Costco’s rates are more than double USAA’s rates for the same demographic.

Young Adult Driver Rates with Costco

Costco car insurance is around 5% higher than the national average for young adults.

Age can truly affect what you are paying. Knowing the averages based on your age can help you find affordable coverage.

Costco Rates for Adults

Costco’s auto insurance quotes for adult drivers are around 7% higher than the national average. Adult rates are double USAA’s rates for the same demographic.

Costco Rates for Senior Drivers

Senior drivers pay 6% to 9% more with CONNECT than the national average.

Costco’s rates are $600 higher than GEICO’s rates for similar coverage for seniors.

Costco Car Insurance With a Speeding Ticket

If you have a speeding ticket on your driving record, you can expect to pay higher-than-average rates for car insurance. For example, Costco’s rates for individuals with one speeding ticket on their record are around $500 more per year than the national average.

State Farm offers rates for a similar demographic that is nearly $1,000 cheaper per year. Learn more in our State Farm auto insurance review.

Costco Car Insurance After an Accident

CONNECT’s insurance rates are nearly 30% higher than the national average for people who have an accident on their driving record.

Still, rates with AAA and Allstate are more expensive than those with Costco.

Costco Rates with a DUI

Rates for auto insurance after a DUI are almost the same with Costco as the national average. Still, they are nearly $1,000 more per year than State Farm’s rates for coverage after a DUI conviction.

DUI convictions can lead to hefty cost increases when it comes to your auto insurance. Checking out multiple companies’ rates could save you a bundle.

Costco Rates for People with Poor Credit

A poor credit score can impact your rates, as insurance companies consider people with bad credit riskier than those with a strong credit score.

Full Coverage Auto Insurance Monthly Rates by Provider & Credit Score

Insurance Company	Good Credit	Fair Credit	Bad Credit
	$135	$165	$245
	$166	$197	$296
	$116	$136	$203
	$95	$115	$175
	$140	$161	$269
	$82	$100	$148
	$177	$226	$355
	$120	$133	$166
	$109	$138	$206
	$91	$118	$200
	$120	$155	$230
	$107	$128	$194
U.S. Average	$123	$148	$226

Costco’s average rates for people with poor credit scores are around 7% higher than the national average.

Minimum Coverage with Costco

Costco’s rates for liability-only policies are around 22% higher than the national average.

Liability Auto Insurance Rates by Provider

Insurance Company	Monthly Rates
	$61
	$44
	$37
	$53
	$30
	$67
	$44
	$39
	$33
	$38
	$22
U.S. Average	$45

CONNECT car insurance policyholders pay nearly $700 more per year than GEICO customers for the same minimum coverage.

Full Coverage with Costco

Full coverage rates with CONNECT car insurance are 27% higher than the national average.

Full vs. Minimum Coverage Monthly Insurance Rates by Provider

Insurance Company	Rates
	$160
	$117
	$87
	$97
	$87
	$80
	$174
	$115
	$105
	$86
	$99
	$59
U.S. Average	$119

Still, Allstate and AAA have higher rates for full coverage policies.

Ameriprise Auto & Home Insurance (Costco) Discounts Available

Costco offers a variety of discounts to its CONNECT policyholders, though many discounts are only available to Executive members. The company’s discount options include the following:

• Premier safety discount
• Good driver discount
• Defensive driver discount
• Tenure discount
• Vehicle safety features discount
• Garaging discount
• Good student discount
• Multi-car discount
• Multi-policy discount

Some discounts can help individuals save as much as 25% on their insurance premiums. If you qualify for a discount on CONNECT car insurance, speak to a company representative to determine whether you’re eligible.