Costco Insurance review

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Costco has developed a strong reputation for saving its customers money, even in the insurance realm. Costco sells car and home insurance policies to customers in 44 states and the District of Columbia through CONNECT by American Family, one of the nation’s largest insurance providers.

Costco insurance may be right for you if you value convenient policy options. Whether you’re searching for the top home insurance provider or the best car insurance company for your needs, Bankrate’s guide can help you decide whether Costco insurance is the right fit.

Costco car insurance

Costco’s goal is to provide cheap car insurance coverage for its members. The company’s car insurance policies are fairly basic and customization options are sparse. If customizing your coverage is important to you, Costco may not be the right fit. However, if you are looking for cheap car insurance, you may want to generate an online quote to see how much you could save.

Costco does not currently offer auto insurance to residents in Michigan, North Dakota, Wyoming, Louisiana, Maine or West Virginia.

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 may 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

Costco car insurance rates will vary for every driver based on diverse factors such as state, age, credit score and claims history. The make, model and year of your car may also factor into your premium. The easiest way to determine how much you will pay for coverage is to generate a quote online.

For reference, the average cost of full coverage car insurance in the United States is $1,674 per year, according to 2021 data from Quadrant Information Services. Keep in mind that car insurance premium averages vary by state.

Minimum Coverage Full Coverage
$677 $1,827

*Costco insurance is underwritten by American Family Insurance Group


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

  • 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.

Unfortunately, Costco does not currently offer home insurance to residents in Florida, North Dakota, Wyoming, Louisiana, Maine or West Virginia.

Types of coverage

Costco home insurance includes basic coverage, plus a few unique add-on coverages. 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.
  • Other homeowners endorsements: CONNECT by American Family offers several endorsements for its home insurance policies, including water backup and sump overflow and personal injury.

Some additional benefits for Costco’s home insurance include:

  • 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 losses due to unauthorized credit card use if the policyholder’s credit card is stolen.
  • Food spoilage protection: Food spoilage protection could 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:

  • 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 may be 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.

Costco may not be a good option for customers looking for excellent customer service, as American Family’s ratings vary by region.

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)

Costco does not sell its own insurance products, so we looked at reviews for American Family Insurance, the parent company of CONNECT. In J.D. Power’s 2020 U.S. Home Insurance Study, the company scored 821/1,000. American Family’s scores vary by region in J.D. Power’s 2021 U.S. Auto Insurance Study. American Family is strong financially, with an A rating from AM Best.

Keep in mind that Costco does not write insurance policies in North Dakota, Wyoming, Louisiana, Maine or West Virginia. Michigan residents can purchase home insurance but not auto insurance, and Florida residents can purchase auto insurance but not home insurance.

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. 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. does not exist. It depends on what the homeowner is looking for and how much they want to spend for coverage. Understanding your needs and getting quotes from a few different companies could help you find the right fit for your circumstances.

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
Lizzie Nealon
Insurance Writer
Lizzie Nealon is an insurance writer for Bankrate. Her favorite part of the job is making home, auto and life insurance digestible for readers so they can prepare for the future.
Edited by
Insurance Writer & Editor
Reviewed by
Assistant Vice President & Claims Field Manager