Connect car insurance offers several discounts and perks, such as defensive driver discount, garaging discount and student away-from-home coverage. Furthermore, Connect offers accident forgiveness as well as new car replacement. However, usage-based and pay-per-mile options are unavailable with this provider.
Costco members can enjoy lower auto rates with CONNECT auto policies thanks to bundling options and exclusive discounts offered by American Family’s CONNECT auto insurer, who has excellent financial stability as evidenced by JD Power 2023 auto claims satisfaction survey results.
Discounts
While Costco doesn’t issue its own insurance policies directly, the company facilitates a partnership between American Family Insurance’s CONNECT subsidiary and Costco to offer auto, homeowners, renters and umbrella coverage in 44 states across America.
Costco Insurance offers various discounts and add-on coverage options, along with competitive rates. Their insurer also boasts a strong financial strength rating and offers attractive premiums; making them an appealing option for car insurance shoppers. But there are some caveats you should keep in mind before purchasing this policy – such as needing to be a member to purchase one; Basic membership costs $65 annually while Executive memberships run $130.
With an excellent driving record and a DMV-approved defensive driving course completed, a Good Driver discount may help reduce premium costs and save money on premium payments. Plus, bundling home and auto policies together may bring even further savings!
Costco auto insurance policies go beyond savings via discounts by offering other perks as well. These include new car replacement, GAP coverage (the difference between what your car is worth and how much it still owes), roadside assistance and road premium discounts for members as well as guaranteed lifetime renewability.
Coverage
Costco auto insurance does not offer as comprehensive of coverage as some of its counterparts; however, most basic elements such as liability, comprehensive and collision coverages as well as personal injury protection (PIP) and roadside assistance are covered. Costco members can take advantage of discounts like their affinity discount or vehicle safety discount to save money when bundling multiple policies together at once.
Costco car insurance policies are underwritten by American Family, earning it high financial strength ratings from A.M. Best. However, according to the National Association of Insurance Commissioners (NAIC), they have received numerous complaints against them; therefore this should be taken into consideration when choosing car policies.
Costco auto insurance plans may be an appropriate choice for people with poor credit as they pose less of a risk to insurers. But even if your credit is excellent, compare Costco rates against those from other insurers to ensure you find the best possible offer based on factors such as car type, driving history and location. It is wise to do your homework and read online reviews prior to making a final decision as unofficial reviews often provide details about difficult claims payouts or surprise rate increases; and Costco may have received criticism due to general themes rather than individual experiences from various individuals who could work within its customer service divisions versus another insurer.
Telematics programs
Costco and American Family provide a variety of car insurance products and policies at highly competitive rates and discounts, while providing vanishing deductibles, roadside assistance and uninsured motorist coverage as standard features. They also offer bundle options including home and auto policies as well as umbrella, motorcycle, boat and RV policies – some available across all 50 states while some only in select ones.
Costco’s telematics program is quite comprehensive; however, there are some limitations. Drivers who violate its terms and conditions could face higher premiums or even have their policy cancelled altogether; however, as long as you drive safely and abide by all road laws you should not experience any issues with Costco telematics coverage.
Costco’s customer service ratings are mixed. While they excel at price and coverage, claims satisfaction is slightly below average according to J.D. Power 2023 auto insurance study by region. They do, however, boast an A rating for financial strength from A.M. Best so you know they will remain around for some time yet. Despite mixed reviews however, most Costco customers tend to report having positive interactions with agents as well as overall service experience.
Customer service
Costco car insurance is provided by CONNECT, an American Family Insurance company which also offers homeowners, renters and condo policies. Members can take advantage of discounts and policy options such as new-car replacement coverage and stolen key expense coverage; its website enables customers to manage accounts and file claims; however it lacks mobile apps as well as information regarding claims processes; customers have reported that processing of claims takes longer than average.
According to the NAIC Complaint Index, CONNECT had more customer complaints than average during 2023; its complaint rate did decrease between 2021-2023 which could indicate improved customer care by CONNECT; money expert Clark Howard suggests considering an insurer’s overall customer satisfaction rating rather than just its complaint rate alone when making your decision.
Though CONNECT offers lower rates than its rivals, they still come with some drawbacks, including poor customer service and limited digital tools. Luckily, CONNECT boasts an A rating for financial strength and an outstanding claims-handling score – plus provides wide-ranging coverage options such as defensive-driver discounts and student GPA discounts! Connect is also an affordable solution – get a free quote online by visiting their website today.
