Costco is known for offering four-pack deodorant, low-priced widescreen TVs, and delicious hot dogs at great prices; but did you know they also provide car insurance through American Family Connect?

Costco members enjoy access to lower-than-average car insurance rates and exclusive discounts through CONNECT, but it has its flaws: it receives more complaints than average and has an extremely low customer satisfaction rating.

Cost

Costco offers its members competitive car insurance rates with access to discounts of all sorts that allow them to reduce premiums further. In addition, Costco guarantees lifetime renewability even for minor traffic offenses; executive members have access to additional benefits like roadside assistance and vehicle service guarantees. All Costco policies are underwritten by American Family Insurance through their CONNECT brand; while these policies are competitively priced they’re not as cost-effective as some of the top car insurers.

This policy meets state requirements by covering bodily injury liability, property damage liability and uninsured/underinsured motorist coverage as well as providing optional roadside assistance and towing coverage, guaranteed auto protection (commonly known as gap insurance) and new car replacement coverage.

Costco policies are competitive with other top insurers, yet don’t receive high customer satisfaction ratings from ValuePenguin. Their customer satisfaction score of 2.40 puts them below average as an auto insurer. Their claims process can also be difficult to navigate and their online tools less user-friendly compared to major providers; nonetheless, Costco policies still deserve serious consideration; for more information visit their website or call for a quote before comparing against quotes from other car insurers to determine if Costco might be right for you.

Coverage

Costco car insurance is offered through CONNECT, a subsidiary of American Family Insurance (AmFam). You’ll pay your premiums through Costco and contact them when necessary, though not directly dealing with Costco employees themselves. Customer reviews indicate generally positive customer service experiences through CONNECT; however, your experience could differ.

Costco Car Insurance offers basic liability, collision and comprehensive coverage. Roadside assistance covers dead batteries and flat tires. In addition, an accident travel expense benefit reimburses you for lodging, meals and transportation home should an auto accident occur more than 100 miles from home.

Costco members can take advantage of exclusive perks in addition to discounted premiums. These include roadside assistance that covers repairs for flat tires or dead batteries; glass repair deductible waiver which waives your deductible if your windshield cracks or chips; as well as discounts for good drivers, student drivers, garage parking and multiple vehicle coverage on one policy.

As much as Costco may offer many advantages, it is still worthwhile to compare car insurance rates between various providers to make sure you get the best value. A minimum coverage policy from Costco typically costs $85 monthly on average while similar policies from Geico or Progressive average around $55 on average.

Discounts

Costco is known for offering low-priced widescreen TVs and four-packs of deodorant, but they also sell car insurance. Their Connect policy from American Family offers exclusive discounts for members and includes the standard six types of coverage; including liability. They offer additional perks such as roadside assistance and new car replacement, making this retailer unique among retailers.

While Costco may seem alluring, it’s essential to remember that it does not underwrite its own policies; rather, CONNECT does so on their behalf and provides American Family with home, renters, condo, umbrella and motorcycle policies as well as multiple other insurers’ auto policies. CONNECT earned above-average customer satisfaction ratings in JD Power’s 2023 U.S. Auto Claims Satisfaction Study but also had above average complaints levels.

Connect provides its members with roadside assistance that covers towing and battery changes up to $75 per incident, accidental travel expense coverage (which covers lodging and meals if involved in an accident while away from their home), glass repair deductible waiver (which waives costs associated with chipped windshield repairs), as well as accidental travel expense coverage (which covers lodging and meals in case of an accident while away). Additionally, Connect may offer glass repair deductible waiver (which waives costs associated with fixing chipped windshields).

Other advantages include bundling your home and auto insurance with CONNECT, while receiving good grades or maintaining a minimum GPA can help lower premiums. In addition, qualifying for good driver discounts or garage parking discounts could result in savings on premiums; as an Executive club member you could receive lifetime renewal on your policy–though unfortunately this benefit is unavailable in Maryland or Michigan or for drivers with previous serious traffic offenses.

Claims

Costco members are eligible for exclusive discounts, as well as comprehensive car insurance policies from Costco that cover six standard forms of coverage: liability, uninsured/underinsured motorist liability coverage, collision, medical expense personal injury protection roadside assistance towing coverage rental car reimbursement coverage new car replacement coverage.

As with other major insurers, Costco offers discounts for safe drivers, excellent students and garaged vehicles. In addition, Costco provides distance student deals as well as umbrella policies to provide added liability protection beyond your homeowners and auto policies.

If you are considering Costco car insurance, be sure to do your homework and compare quotes from several providers before making your decision. Consider whether the additional benefits offered justify paying more. As part of your due diligence when selecting an insurer for your car, it’s crucial that you conduct due diligence on their financial standing – otherwise, you could find yourself facing claims which aren’t paid out due to insolvency issues with their provider. Costco’s parent company, American Family Insurance, holds an A+ rating from A.M. Best so you can have peace of mind that this insurance provider is around to meet all your needs. Unfortunately, their policy does not offer rideshare protection or bodily injury for peer-to-peer car sharing rentals, so be sure to read carefully to ensure all necessary protections.