Costco Insurance Review 2021: Home and Car


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Costco members get lots of great benefits, and one of them is discounted insurance. Costco sells car and home insurance policies through CONNECT by American Family, one of the market’s top insurance companies. Currently, drivers in 44 states and Washington D.C. can purchase Costco auto and home insurance.

Drivers who have a Costco membership and are looking for affordable insurance should check out CONNECT by American Family. Costco insurance comes with good discounts and coverage options, plus additional perks for members.

Costco car insurance

While Costco car insurance policies are fairly basic and don’t offer many customization options, the company’s goal is to provide affordable coverage for its members. Costco states that drivers save an average of $615.43 in the first year they switch to CONNECT by American Family.

Types of coverage

Costco members who purchase a policy from CONNECT by American Family get access to basic auto coverage, including collision, comprehensive, liability, medical payments and uninsured/underinsured motorist coverage. Optional add-ons include rental car insurance, personal injury protection (PIP), gap insurance and roadside assistance.

Costco Executive members receive additional perks by signing up for CONNECT by American Family auto insurance:

  • Roadside assistance: Drivers can purchase roadside assistance as an add-on policy for vehicle repairs and towing services.
  • Lifetime renewability: Lifetime renewability is available for Costco executive members in select states as long as their membership is active.
  • Glass repair deductible waiver: When a driver’s windshield gets damaged and can be repaired rather than replaced, no deductible is required. This coverage is only available for Costco Executive members.
  • Accident travel expense coverage: Drivers can get reimbursed for hotel and food expenses if they get into an accident or their car breaks down while traveling away from home.

Cost of Costco car insurance

On average, a full coverage policy from CONNECT by American Family costs $1,827 per year. For comparison, the United States national average cost is $1,738 per year.

It’s important to keep in mind that car insurance rates are not standardized. Every driver pays a slightly different rate based on their state, age, credit score and claims history. The make, model, year and overall condition of the vehicle are also factored into the premium.

Minimum Coverage Full Coverage
$677 $1,827

*Costco insurance is underwritten by American Family Insurance Group


Costco’s CONNECT by American Family discounts rival those offered by many competitors and include:

  • Costco Affinity discount
  • Good driver discount (California only)
  • Premier Safety discount
  • Defensive Driver discount
  • Vehicle safety features discount (anti-lock brakes, airbags, automatic seatbelts and anti-theft device)
  • Garaging discount
  • Good student discount
  • Student away at school discount
  • Education discount
  • Multi-car discount
  • Multi-product discount
  • Tenure discount

Costco home insurance

Costco’s home insurance policies are more robust than its car insurance offering. Members can choose from a variety of endorsements to customize their policy and fill gaps in coverage. CONNECT by American Family also offers savings opportunities for homeowners who want to lower their rate.

Types of coverage

Costco home insurance includes basic coverage, plus a few unique add-on policies. Here are the homeowners insurance coverage options available:

  • Basic coverage: Homeowners can purchase dwelling, personal property, liability, medical payments and loss of use coverage through Costco.
  • Earthquake insurance: Covers the dwelling, detached structures and personal property in the event of an earthquake.
  • Mine subsidence: If a home is lost or damaged when land shifts due to a man-made mine collapsing or eroding below it, this coverage offers protection.
  • Scheduled personal property: Homeowners can add coverage for unusual or high-value items in the home.
  • Homeowners endorsements: CONNECT by American Family offers several endorsements for its home insurance policies, including home media and adventure equipment, water backup and sump overflow and personal injury.

Some additional benefits for Costco’s home insurance include:

  • Glass repair reimbursement: CONNECT by American Family will fully reimburse homeowners for the cost of broken windows. This coverage is only available for Costco Executive members.
  • Home lockout assistance: Homeowners who get locked out of their house can get up to $100 in 24/7 locksmith services. This coverage is only available for Costco Executive members.
  • Identity theft protection: Homeowners can get up to $5,000 in identity theft protection to cover associated expenses.
  • Credit card/fraud coverage: CONNECT by American Family will cover any losses due to unauthorized credit card use if the policyholder’s credit card is stolen.
  • Food spoilage protection: Food spoilage protection will reimburse policyholders up to $500 if the power goes out.
  • Lock replacement coverage: Homeowners who are victims of home theft can get up to $100 in lock replacement coverage.


CONNECT by American Family offers several discount opportunities for Costco members that purchase home insurance policies, including:

  • Costco Affinity discount
  • Age of home discount
  • Claims-free discount
  • Protective devices discount
  • Tenure discount
  • Multi-product discount
  • Renovation discount (roof replacement, heating and cooling systems, electrical system and plumbing system).

Reasons why Costco is a great option

Costco insurance is a great option for Costco members looking for basic home and auto insurance coverage. It can also be a good choice for drivers who want discounts and homeowners who want to customize their policy with endorsements.

Costco executive members will likely get the most out of Costco’s CONNECT by American Family Insurance, with a long list of exclusive perks available.

Additional policies offered by Costco

In addition to home and auto insurance, CONNECT by American Family also offers the following policies to Costco members:

  • Renters insurance
  • Condo insurance
  • Umbrella insurance
  • ATV insurance
  • Motorcycle insurance
  • RV insurance
  • Boat insurance
  • Classic car insurance
  • Flood insurance
  • Landlord insurance

Costco ratings, reviews, customer satisfaction and complaints

Organization Costco Insurance rating
J.D. Power U.S. Home Insurance Study 821/1,000
J.D. Power U.S. Auto Insurance Study Varies by region
AM Best A (Excellent)
Better Business Bureau (BBB) A

Costco does not sell its own insurance products, so we looked at reviews for American Family Insurance, the parent company of CONNECT. Across the board, American Family gets top ratings. In J.D. Power’s 2020 U.S. Home Insurance Study, the company scored 826/1,000. American Family also scored well in J.D. Power’s 2020 U.S. Auto Insurance Study, winning best car insurance company in the Southwest.

American Family is strong financially, with an A rating from AM Best. The BBB also gives the company an A rating, but the customer reviews are not great—it has an average rating of 1.05 out of 5 based on 43 reviews.

Frequently asked questions

What is the best auto insurance company?

The best auto insurance company is different for every driver because each company has its strengths and weaknesses. Drivers who want cheap rates could be happy with Geico, whereas a driver who wants great customer service could be happier with Amica. Finding the best car insurance company starts by shopping around and comparing providers based on coverage options, discounts and reviews.

What is the best home insurance company?

Like with car insurance, the single best home insurance company does not exist. It depends on what the homeowner is looking for and how much they want to spend for coverage. Some of our top recommendations for home insurance are Amica, Geico and USAA.

Are car insurance and home insurance required?

Car insurance is legally required in almost every state. All drivers must carry a minimum amount of insurance before they can register and drive a vehicle. Homeowners insurance, however, is not legally required. The caveat is that most mortgage lenders require homeowners to have insurance before their loan is approved.

Written by
Elizabeth Rivelli
Insurance Contributor
Elizabeth has two years of experience writing for insurance domains such as, The Simple Dollar, and NextAdvisor, among others. In addition to auto insurance, Elizabeth regularly writes about home insurance, renters insurance and life insurance. She also covers industry trends and general insurance education.