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Geico vs. Costco

Updated May 08, 2024

Explore whether Geico’s digital efficiency or Costco’s member-centric benefits align better with your car insurance needs.


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Established in 1936, Geico holds 12.31 percent of the auto insurance market share. It provides standard coverage policies and perks for everyday drivers and operates nationwide. Geico also extends its insurance offerings beyond auto insurance. However, the company doesn’t underwrite these policies directly; instead, it works with various insurance companies for underwriting.

Founded in 1976, Costco offers discounted car insurance in 44 states and Washington, D.C. through a partnership with American Family. American Family, holding a 2.14 percent share of the private passenger auto insurance market, underwrites Costco’s auto policies through its subsidiary CONNECT. Costco’s car insurance partnership includes typical coverage options and requires membership for coverage discount eligibility. If you’re deciding whether to go with Costco auto insurance vs. Geico, Bankrate’s in-depth comparison can help.


Our verdict

Geico stands out for its low premiums across various driver profiles and superior financial strength (rated A++ by AM Best). Its extensive array of discounts and advanced digital tools, including the DriveEasy telematics program, make it a compelling choice for tech-savvy consumers. On the other hand, Costco, backed by American Family's A rating from AM Best, offers a unique value proposition with membership-exclusive benefits, such as lifetime renewability and comprehensive roadside assistance. While Geico excels in technology and pricing, Costco's focus on member benefits and loyalty rewards offers a competitive alternative for those eligible for its services.

Geico vs. Costco comparison

When comparing Geico vs. Costco for auto insurance, it may be helpful to weigh a number of different variables. For instance, discount opportunities, coverage options, average rates and distinct incentives can all be worth considering. It may also be helpful to consider the pros and cons of each provider to determine which may be the best fit for your needs.

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Rating: 4.4 stars out of 5
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Cost & ratings

Rating: 4.7 stars out of 5


Rating: 4 stars out of 5


Rating: 4.4 stars out of 5


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Policyholders who appreciate membership-based insurance benefits, including dedicated customer service and exclusive discounts, may find Costco's CONNECT, a subsidiary of American Family Insurance, suits their preferences for car insurance.
Exclusive member discounts
Dollar Reload
Lifetime renewability
Car Outline
Roadside assistance
No rates available
No rates available
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Geico pros and cons

  • Low average premiums compared to the national average

  • Range of digital tools

  • Numerous discount opportunities

  • Superior AM Best rating for financial stability

  • Limited options for add-on coverage

  • Brick-and-mortar agency access is limited

  • Doesn’t offer rideshare insurance

  • Doesn’t offer gap insurance

Costco pros and cons

  • Exclusive discount opportunities for members on CONNECT policies

  • Excellent financial strength rating from AM Best

  • Offers other discount opportunities

  • Claims agents available 24/7

  • Not available in all states

  • Requires membership for eligibility

  • Few endorsements

  • No mobile app for policy management

Is Geico cheaper than Costco?

Comparing Costco insurance vs. Geico to the national average for car insurance can offer a clear perspective for drivers weighing their insurance options. While specific average rate data for Costco members isn't available from Quadrant Information Services, Geico typically shows lower averages for both full and minimum coverage policies compared to the national average. For those interested in Costco's offerings, obtaining a personalized quote directly from the company is essential to compare potential costs against Geico's rates effectively. This step can help shoppers make well-informed decisions based on the most relevant pricing information available.

Driver profile Geico avg. full coverage premium Costco avg. full coverage premium
Young driver (age 25) $2,314 Rates unavailable
Senior driver (age 70) $2,097 Rates unavailable
Good driver, good credit $2,012 Rates unavailable
Good driver, poor credit $2,907 Rates unavailable
Speeding ticket with good credit $2,466 Rates unavailable
At-fault accident with good credit $2,851 Rates unavailable

Bankrate's take

The table above establishes that Geico's rates are typically below the national average across a variety of driver profiles. However, the question of whether Costco insurance is cheaper than Geico remains unanswerable without direct data from Costco. To truly understand how Costco compares, potential customers would need to obtain a quote directly from Costco. This step is crucial for those considering their options, as it allows for a direct comparison that can factor in personal circumstances and potential discounts unique to Costco’s offerings. For those evaluating whether Geico meets their needs, it's beneficial to note that it's one of the cheaper big-name carriers and extends across many demographics, often making it a competitively priced option within the industry.

Geico vs. Costco: discounts

Both Geico and Costco have car insurance discounts that can help drivers save money on their auto policies. However, each provider has its own offerings and eligibility criteria. 

Discounts available from both carriers

Many of the discounts offered by both Costco and Geico reward safe driving and responsible vehicle maintenance, which can benefit both new and experienced drivers.

Here are some discounts available from both carriers:

  • Multi-car discount: Customers who insure more than one vehicle can enjoy lower rates.
  • Good driver discount: Drivers with no accidents or violations can qualify for reduced premiums.
  • Defensive driving discount: Completing an approved defensive driving course may lead to savings on car insurance.
  • Good student discount: Full-time students with good academic records can receive discounts on their insurance policies.
  • Vehicle safety discounts: Discounts are available for cars equipped with safety features like airbags, anti-lock brakes and anti-theft systems.

Geico discounts

  • Emergency deployment discount: For military members deployed in imminent danger zones.
  • Federal employee (Eagle) discount: Available to active or retired federal employees.
  • Membership and employee discounts: Discounts for members of over 500 listed organizations.
  • New vehicle discount: For new vehicles three model years old or newer.
  • Seat belt use discount: For consistently wearing seat belts while driving.

Costco discounts

  • Costco member-only discount: Available exclusively for Costco members.
  • Executive member benefits: Includes roadside assistance and lifetime renewability for auto policies.
  • Premier safety discount: For households where all drivers have a clean record for four years.
  • Garaging discount: Discount for vehicles parked overnight in a garage.

Geico and Costco telematics programs

Telematics programs, which monitor driving behavior to potentially lower insurance costs, are increasingly popular among car insurers. Geico's DriveEasy program is one such initiative that allows policyholders to earn discounts based on their driving habits. This program uses a mobile app to track driving behavior over time and will adjust your rates accordingly.

Currently, Costco does not offer a telematics program, so Costco members interested in these benefits would need to consider another insurer’s offerings for potential savings and personalized rates.

Geico DriveEasy
Device Mobile app
Can it raise your rate? Can increase or decrease
Availability 38 states
Discount N/A
What it monitors Distracted driving, hard braking, cornering, smoothness, road type, distance driven, time of day and weather

Geico vs. Costco: customer experience comparison

In the realm of customer experience, both Geico and Costco (through American Family Insurance), strive to offer convenient online services. These include comprehensive websites detailing coverage options and discounts, alongside tools for obtaining quotes and filing claims online. Geico, in particular, enhances its customer interface with a robust mobile app, enabling policyholders to manage their policies, file claims and make payments directly from their mobile devices. This feature offers a significant advantage in terms of accessibility and ease of use. Costco’s policies are unable to be managed via an app.

As for claims satisfaction, it’s worth noting that American Family, which underwrites Costco’s policies, ranked above average in J.D. Power’s 2023 U.S. Auto Claims Satisfaction Study Geico ranked below average. Unfortunately, without Costco's direct inclusion in the study, comparisons are less valid, but insights into American Family’s performance can provide some guidance on what Costco members might expect.

Geico Costco
Apple store 4.8 of 5 Policies managed online
Google play 4.6 of 5 Policies managed online
J.D. Power claims satisfaction 871 / 1,000 882/1,000
*USAA not officially eligible as it does not meet study award criteria

Customer complaints

The National Association of Insurance Commissioners (NAIC) Complaint Index is a metric for assessing an insurer's customer satisfaction relative to its size. This index compares the number of complaints an insurance company receives against its market share. A score of 1.00 represents an average number of complaints; scores higher than 1.00 suggest more complaints than average, while scores below 1.00 indicate fewer complaints. This index helps consumers gauge the reliability of an insurance provider and may influence their decision when choosing an insurer. Understanding this metric can provide valuable insight into how an insurer handles issues and customer concerns, which is essential for making informed insurance decisions.

Geico auto insurance customer complaints

Reviewing Geico's NAIC Complaint Index reveals that the company typically receives fewer complaints than what might be expected given its market share. This pattern suggests a positive customer satisfaction level, likely reflecting well-managed operations and effective customer service. Those considering Geico might find these scores reassuring, offering some confidence in the company’s ability to manage claims and resolve customer issues efficiently.

Costco auto insurance customer complaints

Costco's auto insurance is underwritten by CONNECT, and while Costco itself is not directly rated by the NAIC, CONNECT's performance can offer insight. The NAIC Complaint Index for CONNECT shows a trend of fluctuating scores over recent years. Notably, the index has decreased from 2021 to 2023, suggesting an improvement in how customer complaints are being managed. This could indicate that CONNECT is effectively addressing issues and enhancing its customer service practices, which might reassure potential customers looking at Costco for their auto insurance needs.

Frequently asked questions


Bankrate utilizes Quadrant Information Services to analyze July 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a single, 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit-based insurance scores: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Age: Rates were calculated by evaluating our base profile with the ages 25-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Bankrate Scores

Our Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Rating: 5 stars out of 5
Overall Score
  • Cost & ratings 50%
  • Coverage & savings 30%
  • Support 20%

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

Written by
Ashlyn Brooks
Ashlyn Brooks is a finance writer with more than half a decade of experience, known for her knowledge in areas such as taxes, insurance, investing, retirement, finance news, and banking products.
Edited by Editor, Insurance