Costco Auto Insurance Review for 2025 (Rates, Discounts, & Options)

Costco auto insurance review explores how members can access coverage through CONNECT by American Family Insurance, offering policies with exclusive discounts and perks.

Costco Auto Insurance Rating

While rates vary based on factors like age and driving history, Costco members can benefit from potential savings and additional coverage options.

However, premiums tend to be higher than national averages, especially for young and high-risk drivers. This review breaks down coverage, costs, and benefits to help you determine if Costco auto insurance is the right fit. Start comparing total coverage auto insurance rates by entering your ZIP code here.

Costco Auto Insurance Rates by Age and Coverage

Costco auto insurance premiums vary widely depending on the policyholder’s age and level of coverage. Young drivers are the highest by age group: 16-year-old men pay $201 a month for minimum coverage and $472 a month for full coverage. A 60-year-old female pays only $31 for minimum coverage and $77 for full coverage.

Costco Auto Insurance Monthly Rates by Coverage Level, Age, & Gender

While Costco offers competitive pricing for older drivers, younger drivers may find lower costs elsewhere. Auto insurance rates by age show that Costco’s full coverage rates tend to be higher than national averages, particularly for high-risk drivers. Getting a Costco auto insurance quote and comparing it with multiple providers can help determine if Costco’s CONNECT insurance offers the best value.

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Costco Auto Insurance Rates: How They Compare to Competitors

Costco auto insurance through CONNECT by American Family Insurance offers competitive rates but is not always the cheapest. Minimum coverage costs $49 per month, lower than Allstate at $87, Farmers at $76, and Liberty Mutual at $96. It is slightly higher than Geico at $43 and State Farm at $47.

Costco Auto Insurance Monthly Rates vs. Top Providers

Full coverage costs $124 per month, less than Allstate at $228, Farmers at $198, Liberty Mutual at $248 but higher than Geico at $114, and State Farm at $123. Costco’s rates are reasonable for drivers with clean records. A ticket raises the minimum coverage rate from $49 to $62, an accident increases it to $76, and a DUI brings it to $86.

Full coverage starts at $124 and increases to $156 after a ticket, $192 after an accident, and $214 after a DUI. While rate increases are common, competitors like Geico and State Farm often offer lower pricing after violations.

Costco auto insurance is a good option for members with clean records but may not be the best choice for drivers with violations. Some competitors provide lower rates, so getting a Costco car insurance quote and comparing options before choosing a policy is important.

Costco Car Insurance Pricing for Different Credit Scores

Costco Insurance offers competitive auto rates, but its affordability depends on credit score. For good credit, Costco’s $114 monthly rate is lower than Allstate, Farmers, and Liberty Mutual but higher than Geico and Travelers. For fair credit, Costco’s $130 rate is more affordable than Allstate and Farmers but still above Geico, Nationwide, and Progressive.

Costco Auto Insurance Monthly Rates vs. Top Competitors by Credit Score

Drivers with poor credit will see rates rise to $150, making Costco cheaper than Farmers and Liberty Mutual but more expensive than Nationwide, Progressive, State Farm, and Travelers. While Costco provides solid pricing, Geico, Travelers, and State Farm often offer lower rates, making them better choices for budget-conscious drivers. Getting a Costco insurance quote can help determine if it offers the best value for your situation.

Costco Auto Insurance: How Discounts Affect Your Rates

Costco auto insurance offers various discounts that can lower premiums, but how much you save depends on your eligibility. Bundling policies provide the highest discount at 18%, making it a strong option for members who also insure their homes or other vehicles through Costco.

Costco Auto Insurance Discounts by Savings Potential

Military members can save up to 16%, while multi-vehicle discounts reach 15%. Long-term customers benefit from a 14% loyalty discount, and students with good grades receive up to 12% off. New car owners can save 11%, while homeowners and safe drivers each get 10%. Low-mileage drivers receive a 9% discount, and anti-theft features qualify for 8%.

Compared to competitors, these discounts are on par with major insurers like Geico and State Farm, but the actual savings will depend on Costco’s higher base rates. While these discounts can make Costco’s policies more affordable, drivers should compare final quotes to see if they offer real savings over other providers.

Before purchasing a policy, reviewing Costco auto insurance requirements can help ensure you qualify for the best available discounts.

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How Costco Auto Insurance Scores With Customers & Experts

Costco auto insurance receives strong ratings across multiple agencies, indicating reliable service and financial stability. AM Best gives Costco an “A” for excellent financial strength, while the Better Business Bureau (BBB) rates it A+ for strong business practices. Consumer Reports scores Costco 78 out of 100, showing positive customer feedback, and J.D. Power ranks it at 850 out of 1,000, reflecting above-average satisfaction.

Costco Insurance Ratings & Consumer Reviews

The National Association of Insurance Commissioners (NAIC) reports a 0.83 complaint index, meaning Costco receives fewer complaints than the industry average. While these ratings suggest solid performance, customer experiences can vary. A Yelp review from Car S. in San Diego, CA, highlights a smooth and efficient process with the Costco Auto Program.

The reviewer found significant savings when purchasing a vehicle, with dealership support and clear program benefits making the transaction seamless. This Costco Insurance review supports Costco’s reputation for providing valuable discounts and a straightforward experience.

Costco Auto Insurance Coverage Options

Costco auto insurance, offered through CONNECT by American Family Insurance, provides a range of standard and optional coverages for members. While Costco does not sell its own insurance, its partnership with CONNECT gives members access to policies with added perks and discounts.

Standard Coverage Options

CONNECT policies include essential coverage types that most drivers need:

• Liability Coverage: Pays for bodily injury liability and property damage to others if you’re at fault in an accident.
• Collision Coverage: This helps cover the cost of repairing or replacing your vehicle after an accident.
• Comprehensive Coverage: Protects against non-collision damages, including theft, vandalism, and weather-related incidents.
• Uninsured/Underinsured Motorist Coverage: Ensures you’re covered if another driver lacks adequate insurance.
• Medical Payments Coverage: Helps you and your passengers pay medical bills after an accident.

Optional Add-Ons for Extra Protection

Costco members can customize their policies with optional add-ons:

• Roadside Assistance: Provides help with flat tires, dead batteries, and towing.
• Rental Car Reimbursement: This covers the cost of a rental vehicle while your car is being repaired.
• Accident Travel Expense Coverage: Pays for lodging and meals if an accident leaves you stranded far from home.

Exclusive Benefits for Costco Executive Members

Costco Executive members receive additional perks, such as:

• Lifetime Renewability: Guarantees policy renewal as long as membership and policy conditions are met.
• Enhanced Roadside Assistance: Offers higher coverage limits and expanded services.

While Costco’s auto insurance program provides solid coverage options, its rates may be higher than national averages, particularly for younger drivers and those with poor credit.

Checking rates from different insurers can help you decide if CONNECT is the right choice for your next insurance policy.

Pros and Cons of Costco Auto Insurance

Costco auto insurance, offered through CONNECT by American Family Insurance, provides members with exclusive benefits and competitive pricing. While it can be a solid option for certain drivers, there are some downsides to consider.

Pros

• Exclusive Member Discounts: Auto insurance discounts for Costco members, especially Executive members, reach 18% when you bundle.
• Strong Financial Ratings: CONNECT receives an “A” rating from AM Best, and BBB rates it as A+, which means sound financial strength and strong business practices.
• Lower Rates for Some Drivers: Costco offers competitive rates for drivers with good credit and clean records, making it an affordable option for low-risk policyholders.

Cons

• Higher Premiums for High-Risk Drivers: If you have bad credit or you’re a young driver, or you have a few accidents or violations on your record, you’ll pay even higher than the national average, so other insurers like Geico or State Farm auto insurance will be cheaper.
• Limited Availability: Costco auto insurance isn’t available in all states, and some discounts and benefits require a Costco Executive membership, which costs $120 annually.

Before choosing Costco auto insurance, compare quotes from other insurers to determine if its benefits and pricing fit your needs.

Make sure to consider your driving history and coverage needs, as rates can vary significantly based on individual factors.

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Costco Auto Insurance a Smart Choice for You

Costco auto insurance, offered through CONNECT by American Family Insurance, provides exclusive discounts and benefits for members, especially Executive members. Perks like roadside assistance, lifetime renewability, and glass repair reimbursement add value, but rates tend to be higher than the national average.

Costco’s Insurance may work well for members with clean records and bundled policies, but young drivers and those with poor credit might find better deals elsewhere. When looking at auto insurance for different types of drivers, it’s crucial to compare rates from multiple insurers to see if CONNECT offers the best coverage for your situation.

Use our free comparison tool to see what auto insurance quotes look like in your area.

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