Costco car insurance offers various discounts that can save you money, along with standard coverage such as liability and collision coverage as well as roadside assistance.
Costco stands out by offering more than just low premiums; they also feature unique benefits, including guaranteed lifetime renewability for executive members and various discounts, such as defensive driving courses and student discounts.
Cost
Costco car insurance offers competitive rates and a variety of benefits, such as roadside assistance coverage with towing. They also offer rental coverage, replacement keys/locks coverage and replacement car rental coverage if applicable to your state. Depending on where you reside, additional coverage such as collision and comprehensive may increase premium costs further; however savings will depend on factors like vehicle type and location.
Bundling your auto and homeowners policies together can save money with CONNECT. They offer multiple discounts, such as good driver and loyalty discounts; additionally, there may be savings if you buy a new car, install anti-theft devices or automatic seatbelts, garage your vehicle overnight or buy anti-theft devices or automatic seat belts; they even offer a student away discount that gives lower rates if your college-aged child will not be driving a covered vehicle to class.
CONNECT insurance from Costco is an appropriate choice for its members, though it does not cover ridesharing. CONNECT earned a better-than-average claims satisfaction rating in the J.D. Power 2023 U.S. Auto Claims Satisfaction Study and is underwritten by American Family Insurance which holds an A rating from A.M. Best. Furthermore, Costco offers many add-on options, such as new car replacement coverage that covers any differences between your lease/loan agreement and total car purchase cost – another alternative offered by American Family.
Coverage
Costco is widely recognized as a bulk shopping hub, but they also provide insurance services through American Family Insurance (AFI). Their partnership offers various car coverage options – from liability coverage to good driver discounts in California and vehicle safety features – along with discounts and benefits such as good driver discounts and vehicle safety features. Furthermore, customers can save money when bundling their auto policy with other policy offerings from Costco such as home or umbrella policies.
Costco car insurance may be an ideal choice for drivers who qualify for its many discounts; however, it may not be best for everyone. Notably, rideshare drivers aren’t covered and their claims-handling is often met with criticism; additionally they do not offer diminishing deductibles which help lower premiums over time.
Though AFI doesn’t provide pay-per-mile car insurance options, their CONNECT subsidiary does provide an economical alternative. This policy can track your driving habits such as braking force and speed to help evaluate risk and save you money. In addition to low premiums, CONNECT also offers many add-on services like roadside assistance and towing; an online tool to find recommended repair shops; as well as 24/7 customer service team.
Complaints
Costco Car Insurance Services offer standard auto coverage options such as comprehensive and liability coverage as well as several add-ons such as roadside assistance and towing. However, they don’t provide rideshare coverage and don’t offer diminishing deductible options which allow drivers to lower their deductible over time for safe driving or no claims made. Furthermore, Costco holds an unfavorable rating from Better Business Bureau while lacking anti-theft system discounts.
Though Costco doesn’t operate directly as an insurance provider, it works with CONNECT by American Family to offer home and auto policies to its members. Costco car insurance policies are competitively priced with various discounts including volunteer, good student and low mileage discounts for drivers who travel less than 7,500 miles annually; however customer service could use some improvement while there’s no diminished deductible option available.
Connect offers homeowner insurance to all homeowners, with members of Costco receiving special discounts and benefits. Its policies cover a range of coverage options including replacement cost value for personal belongings in many states (which differs from actual cash value which takes into account depreciation), as well as replacement cost value coverage options in general. Connect also receives more customer complaints than expected for such a large company like themselves but still maintain an A rating from A.M. Best regarding financial strength.
Customer service
Costco, the well-known wholesale marketplace, provides its members with discounted goods and services at discounted rates. Furthermore, Costco provides auto and home insurance options as additional member benefits. Costco also partners with American Family to offer a selection of insurance policies under their CONNECT brand for automobiles, homes and condos – but these do not cover rideshare coverage that some states mandate for Uber and Lyft drivers. CONNECT’s customer reviews across Trustpilot, Better Business Bureau and other independent sources vary dramatically, from reports of outstanding service from some customers to disapproval for its high prices and lack of discounts for nonmembers.
Costco Car Insurance features new-car replacement, gap coverage (which pays the difference between what a vehicle is worth and what you owe on it), roadside assistance and other benefits. Bundling multiple policies yields discounts; children may be covered on parent-approved cars. There’s even a defensive-driving discount and good student discount available! American Family has earned an A rating from A.M. Best!
MoneyGeek conducted an analysis to identify the top auto insurers in the US. Our criteria included customer satisfaction, price flexibility and coverage options – among which Costco earned fifth overall with an affordability score of 84 out of 100.
