Costco insurance review 2024
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At a glance
Bankrate's take
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.
- Gap insurance offered for qualifying cars
- 24/7 auto claims agents
- Unique home insurance endorsements
- Limited home insurance discounts
- Life insurance discounts of about 15 percent
- Medical exams required for life insurance
New
In early 2023, Costco stopped selling home and auto insurance policies in California, adding to the list of insurers limiting coverage in the Golden State.
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Costco car insurance review
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.
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 43 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, as well as roadside assistance.
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 auto 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.
Pros
- 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
Cons
- Few endorsements are available
- No mobile app
- Higher-than-baseline number of NAIC complaints regarding auto policies
Costco car insurance cost
While specific car insurance rates for Costco auto insurance are not publicly available, understanding national averages can provide context. On average, full coverage car insurance costs about $2,278 per year or $190 monthly, and minimum coverage averages around $621 annually or $52 monthly. For a personalized estimate that reflects your unique situation, contact a Costco auto insurance agent.
Costco customer satisfaction
A good customer experience can be just as important as getting a cheap car insurance rate. To evaluate this metric, Bankrate reviews several third-party scores, including J.D. Power scores. These scores indicate how happy existing customers are with their Costco auto insurance. Costco insurance is offered through CONNECT, powered by American Family, and the company’s AM Best financial strength rating indicates a positive history of delivering on claim payouts. While CONNECT was not scored in the 2024 J.D. Power Insurance Digital Experience Survey, American Family ranked highly in both Service and Shopping.
Costco auto insurance customer complaints
The National Association of Insurance Commissioners (NAIC) rates companies based on complaints. A complaint index score of 1.0 indicates an average number of complaints, while a higher index score means the company gets more complaints than average. According to the NAIC, CONNECT receives an above-average number of complaints for its private passenger car insurance policies.
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:
- Garaging discount: If you keep your cars in a garage overnight, you may be eligible for a discount.
- Tenure discount: Hitting time-related milestones might get you a cheaper premium than what CONNECT would offer to a new customer.
- Good student discount: This discount recognizes academic achievement for full-time students meeting certain qualifications, potentially reducing the cost of coverage.
- Student away discount: 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).
- Defensive driver discount: Taking a DMV-approved defensive driver course and presenting your completion certificate to CONNECT could net you some savings.
- Multi-car and multi-product discounts: Insuring multiple vehicles with CONNECT may entitle you to a multi-car discount. Bundling different insurance types, like auto with homeowners or umbrella policies, could also lead to discounts that reward you for consolidating your insurance needs with CONNECT.
- Premier safety discount: For those with spotless driving records over the past four years, this discount rewards safe driving habits.
- Vehicle safety features: Discounts may be available for vehicles equipped with safety features such as anti-lock brakes, airbags, automatic seatbelts and anti-theft devices.
- Defensive driver discount: Completing an approved "refresher" driving course could earn you a discount, acknowledging your commitment to safe driving.
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 home insurance review
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.
Pros
- 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
Cons
- CONNECT homeowners insurance not rated by J.D. Power
- No live chat
- Not as many discounts as some competitors
Costco home insurance cost
While specific premium data for Costco home insurance is not publicly available, understanding how insurance costs are calculated can be helpful. The national average for home insurance, according to data from Quadrant Information Services, stands at $2,230 per year, or around $186 per month, for a policy with $300,000 in dwelling coverage. This benchmark can serve as a useful comparison when evaluating the potential cost of Costco's home insurance. Various factors influence home insurance rates, and seeing where Costco's rates fall in comparison to this national average may assist in determining the most suitable rate for your needs.
Costco customer satisfaction
Home insurance customer service ratings often consider a wide range of variables. These can include everything from how easy it is to get a policy quote to how claims are processed. Generally speaking, a higher score is a good thing and a lower score indicates less customer satisfaction.
Costco homeowners claims satisfaction
While CONNECT is not rated by the 2024 J.D. Power Property Claims Satisfaction Study, its parent company American Family is. American Family earned an above-average score of 877 out of 1,000 compared to the study average score of 869. More than 6.000 people were surveyed about how happy they are with factors like estimating process, claims settlement, and digital tools.
Costco home insurance customer complaints
CONNECT's NAIC complaint index data for its home insurance product is less favorable than its auto product. The insurer received more complaints than considered average for a company of its size against its home insurance product.
Costco home insurance discounts
Shoppers looking for the cheapest homeowners insurance company may be interested in the following Costco home insurance discounts offered by CONNECT:
- Age of home discount: New homes may qualify for a discount, since newer homes may be at less risk for damage.
- Renovation discount: 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.
- Tenure discount: Just like with auto insurance, if you keep your home insurance policy with Costco for several years, you could earn a discount.
- Home protection discounts: 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.
- Claims-free discount: If you haven't filed a claim in the last five years, you may be eligible for a discount in some states.
- Multi-product discounts: Bundling your home insurance with other policies like auto or umbrella insurance through CONNECT might lead to additional discounts.
Costco life insurance review
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 percent 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
Pros
- 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
Cons
- Company states that medical exams are required in most cases
- Cannot purchase online
- Protective Life scored below average in the 2023 J.D. Power U.S. Individual Life Insurance Study
Costco life insurance riders
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:
- Accidental death benefit rider: This option can provide a higher death benefit payout if you pass away due to an accident.
- Children’s term life insurance rider: 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.
- Income provider option endorsement: Including this endorsement (offered at no additional charge) will split your death benefit payout into payments rather than paying it as a lump sum.
- Terminal illness accelerated death benefit endorsement: 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.
- Waiver of premium rider: If you become disabled, this rider may waive your life insurance premium.
Compare life insurance providers quickly and easily
See which provider is right for you.
Whole life insurance combines life insurance with an investment component.
- Coverage for life
- Tax-deferred savings benefit if premiums are paid
- 3 variations of permanent insurance: whole life, universal life and variable life include investment component
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
- Fixed premium over term
- No savings benefits
- Outliving policy or policy cancellation results in no money back
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Compare Costco with other insurers
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.
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Featured
Costco
Not scored
Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings
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Travelers
4.2
Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings
Cost & ratings 4.1Coverage 4.2Support 4.4 |
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OVERVIEW
Bankrate identified key carrier features, coverage offerings, discounts and more
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Purchasing Costco insurance may be a good idea for Executive Members with fairly straightforward coverage needs. Costco insurance may not be best for customers that prefer to work directly with an agent or those looking for highly-rated customer service.
Read More
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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.
Read More
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STANDOUT FEATURES
These features are some of the carrier’s most impressive
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Life insurance members discount
New home discount
Tenure discount for car policies
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Hybrid/electric car discount
New car replacement endorsement
Travelers Affinity offers specia
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AVG FULL COV. AUTO RATE
Average national annual cost of a full coverage auto insurance policy
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| No rates available |
$1,810 |
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J.D. POWER AUTO SCORE
J.D. Power’s Auto Claims Satisfaction Study assesses customer satisfaction with the claims experience on a 1,000-point scale
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| Not Scored |
854/1000 |
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AVG HOME RATE
Average national annual cost of a home insurance policy with $300K in dwelling coverage
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| No rates available |
$2,325 |
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J.D. POWER HOME SCORE
J.D. Power’s Property Claims Satisfaction Study assesses customer satisfaction with the claims experience on a 1,000-point scale
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| Not Scored |
790/1000 |
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AM BEST RATING
AM Best ratings assess companies’ financial strength based on historical ability to pay out claims, among other financial obligations
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| Not Scored |
A++(Superior) |
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Why you can trust Bankrate
Read our full methodologyOur insurance editorial team includes licensed agents with decades of combined experience, and we used our intimate knowledge of the industry to conduct this in-depth Costco insurance review.
46
years of industry expertise
122
carriers reviewed
34.5K
ZIP codes examined
1.2M
quotes analyzed
Is Costco a good insurance company?
Bankrate’s insurance editorial team includes licensed agents with real-world agency experience. We understand the research required 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.
What are real-life customers saying about Costco?
To provide a more realistic idea of customer experience with Costco insurance policies, we’ve sourced actual policyholder feedback from two popular online forums: Reddit and Bogleheads.org. These forums foster a broad range of conversations and offer a space for personal anecdotes and questions about getting insurance through Costco.
Reddit users have mostly positive remarks about car insurance purchased through Costco. Many appreciate the price and note how much cheaper the rates are compared to major competitors. However, several people have remarked that coverage is very basic and premiums can increase significantly from one renewal to the next.
Bogleheads.org
Bogleheads users also had mostly good things to say about Costco insurance, with one major concern being that CONNECT no longer writes home policies in California. One user also noted that when they filed a homeowners insurance policy claim, they were not able to choose all of the sub-contractors who were hired to make repairs.
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
Costco company details
Customers can reach Costco regarding their insurance policies by phone or internet.
- Sales, customer service and claims: 1-888-404-5365
- Roadside assistance: 1-888-742-4572
- Website available at: connectbyamfam.com/costco
- Sales email: customersfirst@connectbyamfam.com
State availability
Costco car insurance and Costco home insurance are available in 43 states and Washington, D.C. The states where Costco insurance is not available include AK, CA, LA, ME, ND, RI, WY. Costco life insurance is offered in every state except New York.
Costco tools and benefits
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.
- Glass deductible waiver: Your car insurance deductible may be waived if you get a chip in your windshield that can be repaired without replacing the entire windshield.
- Accident travel expense coverage: This one may be particularly helpful to frequent road trippers. If you get into an accident that renders your car undrivable and you are more than 100 miles from home, this coverage can help with your out-of-pocket accommodation or travel expenses.
Frequently asked questions about Costco