Costco insurance review 2023
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At a glance
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Policyholders who value unique home insurance benefits over robust car insurance policies and are also members of Costco might consider Costco insurance as their company of choice.
Exclusive discount on CONNECT, powered by American Family insurance policies for Costco members
AM Best financial strength rating of A (Excellent)
Not available in all states
Customer service is not available 24 hours a day, on Sundays or holidays
Costco car insurance
Costco might not be the first company that comes to mind when you think of insurance, but the company does offer some insurance products to its members. Costco sells car and home insurance policies to customers through CONNECT, powered by American Family, one of the nation’s largest insurance providers.
Costco’s car insurance policies are relatively basic, and personalization options are sparse, so Costco car insurance may be a good fit for someone looking for a simple auto policy. In addition to the standard coverage types you would expect with a major car insurance company, Costco car policies also offer gap insurance and new car replacement on eligible vehicles. To be eligible to purchase a Costco insurance policy, you must be a Costco member. Currently, Costco coverage is available in 44 states and Washington, D.C.
In addition to exclusive discounts reserved for Costco members, Costco executive members may get extra peace of mind through a lifetime renewability benefit offered on eligible Costco auto policies.
Pros and cons of Costco car insurance
When requesting car insurance quotes, it can be hard to differentiate one company from the next. Creating a list of pros and cons for Costco insurance could offer a helpful visual representation of how the carrier stacks up, and it may also help you determine where your priorities lay regarding your auto policy.
Costco members may find it convenient to purchase their insurance where they shop for other items
Gap insurance is offered
Claims agents are available 24/7
Few endorsements are available
No mobile app
Higher-than-baseline amount of NAIC complaints regarding auto policies
Costco car insurance cost
Car insurance rates are individualized. Although average Costco car insurance premiums are not available, you can get a quote by talking with an agent.
Costco car insurance discounts
In addition to an exclusive discount for Costco members, CONNECT offers a few other unique discount opportunities that may help you save on your car insurance, including:If you keep your cars in a garage overnight, you may be eligible for a discount.Hitting time-related milestones might get you a cheaper premium than what CONNECT would offer to a new customer.If your student lives at school more than 100 miles away from home, you could earn a discount (as long as your student doesn’t have a vehicle with them at school).Taking a DMV-approved defensive driver course and presenting your completion certificate to CONNECT could net you some savings.
Keep in mind that discount eligibility varies depending on the state you live in. If you are concerned with price and need the cheapest car insurance company, you may want to contact Costco car insurance for a quote and to see which discounts apply to you.
Costco car tools and benefits
Costco Executive members may receive extra perks like roadside assistance and lifetime renewability.
CONNECT also offers some additional benefits with its car insurance policies, including a glass deductible waiver. With this waiver (included at no additional cost), your deductible may be waived if you get a chip in your windshield and it can be repaired without replacing the entire windshield. CONNECT’s comprehensive coverage also includes Stolen Key Expense Coverage. This benefit can help replace your key and locks if your car keys are stolen, and your deductible may be waived, as long as it costs less than $250.
Costco home insurance
Costco home insurance policies are more robust than the company’s car insurance offerings and could be a good choice for Costco members looking for customizable coverage. Costco members can choose from a variety of endorsements to personalize their policy and fill in coverage gaps. Optional add-ons include coverage for adventure equipment, personal injury, water backup, earthquake and mine subsidence.
Pros and cons of Costco homeowners insurance
If you’re shopping for the best homeowners insurance company, you may want to consider the perks and drawbacks of Costco’s offerings to get a holistic view of the insurer.
Unique endorsements available that may not be offered by other companies
Wildfire loss prevention may be included at no additional cost in certain states
CONNECT offers exclusive homeowners benefits for Costco executive members
CONNECT homeowners insurance not rated by J.D. Power
No live chat
Not as many discounts as some competitors
Costco home insurance cost
Premium data for Costco home insurance is unavailable. It is important to note, though, that insurance companies use many factors to determine your premium. Seeing how your home insurance rate from Costco falls in line when compared to the national average could be a helpful tool when seeking the best rate for your needs.
Costco home insurance discountsShoppers looking for the cheapest homeowners insurance company may be interested in the following Costco home insurance discounts offered by CONNECT:New homes may qualify for a discount, since newer homes may be at less risk for damage.If you replace your roof, update your heating and cooling system, renovate your electrical system or redo your plumbing, you might save money on Costco home insurance.Just like with auto insurance, if you keep your home insurance policy with Costco for several years, you could earn a discount.You may earn a discount if you have smoke alarms, a professional monitoring system, a video doorbell or other protection devices installed in your home.
Costco home tools and benefits
Wildfire loss prevention is a unique benefit that Costco home insurance includes in some of its policies. Through a partnership with Wildfire Defense Systems, Inc. (WDS), Costco homeowners policyholders in Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah and Washington may receive extra fire protection, including debris removal, fuel mitigation, sprinkler set-up, vent sealing and more.
Executive Costco members may also be eligible for some extras, including glass reimbursement, which may pay up to $1,000 to replace a broken window, along with home lockout assistance.
Some additional benefits for Costco’s home insurance include identity theft protection, food spoilage coverage and lock replacement coverage. Costco also offers renters and condo coverage.
Costco life insurance
Like its auto and home insurance, Costco life insurance is not written through Costco itself. Instead, Costco has partnered with insurance company Protective to offer Member Advantage Life Term policies, at around 15% savings for Costco members compared to the general life insurance product market. However, only term life is available, with two term limit options (10 or 20 years). With this in mind, Costco life insurance through Protective may be best for those looking for a cheap life insurance policy with little-to-no frills.
Pros and cons of Costco life insurance
Costco members get exclusive access to a Protective Member Advantage Life Term policy
Policy may be a good choice for those new to life insurance, since few options are available
Some optional riders may be included at no additional cost
Company states that medical exams are required in most cases
Cannot purchase online
Protective Life scored below average in the 2022 J.D. Power U.S. Individual Life Insurance Study
Costco life insurance endorsements
Endorsement options can be important for those looking for the best life insurance company. Luckily, Protective Life offers a few add-ons that could be of interest, including:This option can provide a higher death benefit payout if you pass away due to an accident.Parents may consider adding this rider to provide life insurance protection for their children, which the child could then convert into their own policy once they reach the age of 25.Including this endorsement (offered at no additional charge) will split your death benefit payout into payments rather than paying it as a lump sum.If you’re diagnosed with a terminal illness, this endorsement would allow you to access up to 60 percent of your death benefit (or $1 million, whichever is less) before you pass. In eligible states, this endorsement is included at no additional cost.If you become disabled, this rider may waive your life insurance premium.
Costco life tools and benefits
Protective doesn’t offer as many life insurance tools and benefits as some of its competitors, but it does offer a life insurance calculator to help you determine how much life insurance you may need. Protective also has a small online Learning Center where you can learn about its life insurance product, and an online web portal that allows customers to review their account information, change their beneficiaries and more.
Costco Insurance customer satisfaction
For many people, customer satisfaction is just as important as cheap insurance rates. To evaluate this metric, Bankrate reviews several third-party scores, including J.D. Power insurance study results. As Costco insurance is offered through CONNECT, powered by American Family, its AM Best financial strength rating indicates a positive history with an A (Excellent) rating.
In addition to J.D. Power scores and Costco’s AM Best rating, we also analyzed where insurance companies fall on the National Association of Insurance Commissioners (NAIC) Complaint Index. The NAIC keeps track of how many complaints it receives about a company and separates these complaints by insurance policy type. It then issues an index score to help consumers visualize how many complaints a company gets compared to other companies of similar size. The average (or baseline) amount of complaints is 1.0. A score higher than that means that the company receives more complaints than average and vice versa.
Costco auto satisfaction
CONNECT was only included in one region of the 2022 J.D. Power U.S. Auto Insurance Study (California). However, it earned third place in California for overall customer satisfaction, scoring 834 out of 1,000.
In contrast to its high J.D. Power score, according to the NAIC, CONNECT receives more complaints than baseline about its private passenger auto insurance, with a complaint index score of 1.27. In light of this, drivers who prioritize customer service may want to do further research before switching to Costco car insurance.
Costco homeowners satisfaction
For those comparing home insurance quotes, it may be worth noting that J.D. Power did not include CONNECT in any of its 2022 property insurance studies. However, the company scores well below the baseline on the NAIC Complaint Index, with a score of 0.55 (meaning it gets fewer complaints than average). This data may indicate that many of CONNECT's homeowners policyholders are generally satisfied with the company's service.
How to file a claim with Costco Insurance
Filing a claim is usually straightforward, but the information you need to provide will depend on the type of claim you are reporting. For instance, when filing a homeowners claim, your insurance company will ask for basic information, such as your name, policy number and the date the loss occurred. It may also ask you to complete paperwork documenting pertinent details surrounding the loss and set up an appointment for a claims adjuster to inspect the damage to your home (when applicable).
Many insurance professionals recommend that you file your claim as soon as possible to avoid unnecessary delays. When you’re ready, you can file a claim with CONNECT by:
- Calling 1-888-404-5365
- Reporting the claim on CONNECT’s online policy portal
For life insurance, you can file a claim with Protective Life by:
- Calling 1-844-740-5433
Costco car insurance and Costco home insurance are available in 44 states and Washington, D.C. The states that Costco insurance is not available include:
- North Dakota
- Rhode Island
Costco life insurance written through Protective Life is not available in New York.
Other Costco perks worth considering
While you search for the best car insurance company, you may want to consider the following products and perks that CONNECT offers to Costco members:
- Specialty insurance: CONNECT offers specialty insurance for motorcycles, classic cars, ATVS, RVs and boats is available for Costco members.
- Commercial insurance: CONNECT offers Costco members insurance that is tailored for business use, such as commercial auto policies and business owner policies.
- Umbrella insurance: Umbrella insurance provides extra liability protection above what you carry on your homeowners and auto policy.
- Customer portal: Policyholders can make changes to their policy, pay bills, request ID cards and more with CONNECT’s full-service full-service online customer portal.
Costco corporate sustainability
As a company, Costco places importance on sustainability, human rights and community action. Costco focuses on sustainability as it relates to their business operations, including using water efficiently, reducing inequalities, protecting marine life and taking action on climate change. The company also thinks about human rights in all steps of the business, from employee rights to the rights of suppliers and those making the materials used in Costco’s products. Finally, Costco focuses on giving back to communities by earmarking 1% of its pre-tax profits for charitable contributions.
Not sure if Costco is right for you?
Bankrate’s Costco insurance review may be your first stop in trying to determine if this company can meet your needs. Remember that you’d need to be a member of Costco to be eligible for coverage. If you are eligible, it may still be worth requesting quotes from some comparable alternatives below before settling if Costco Insurance is right for you.
Costco vs. Travelers
If you are looking for a company that offers highly personalized coverage, Travelers could be a good choice. The carrier has numerous auto and home endorsements to help you build a policy that fits your unique needs.
Learn more: Travelers Insurance review
Costco vs. Nationwide
Nationwide could be a good option if you want to bundle multiple insurance and financial products with one carrier. Unlike Costco, Nationwide does not have national availability limitations, and offers a suite of insurance products as well as investment, retirement and banking products.
Learn more: Nationwide Insurance review
Costco vs. Farmers
In contrast to Costco’s relatively basic car insurance coverage options, Farmers has many endorsements available to help you build an extra robust auto insurance policy. It also offers homeowners insurance as well as term, whole and universal life policies.
Learn more: Farmers Insurance review
Is Costco a good insurance company?
Bankrate’s insurance editorial team includes four licensed agents with real-world agency experience. We understand the research it takes to find the best insurance company that ticks your boxes. Our goal is to give you relevant information to help you feel empowered during your insurance shopping journey.
Whether or not Costco insurance is a good company depends on your needs. If you aren’t already a member of Costco (or don’t plan on becoming a member soon), Costco insurance might not be a viable option. However, if you are a Costco member — as well as an Executive member (as you get extra perks) — it could be worth exploring Costco insurance, especially if you’re looking for unique homeowners insurance benefits.46years of industry expertise122carriers reviewed20.7KZIP codes examined1.2Mquotes analyzedOn This Page