Costco Offers Auto Insurance To Its Members, But Are There Any Perks?

The car-related perks of getting a Costco membership are many, starting from low cost gas to low-priced tires and Kirkland Signature motor oil. And, yes, that has to pass the identical tests as the opposite brands, even when it’s cheaper. Searching for auto insurance? Costco offers that, too. And like other member advantages, the corporate’s insurance comes with some notable upsides.

Now, the insurance is not actually underwritten by Costco. What’s happening here is that when you buy a Costco membership, you possibly can get a novel package of advantages from Connect insurance — which is, in turn, a part of American Family Insurance. Things get a little bit trickier because American Family Insurance is within the technique of absorbing the Connect branding into its own. For what it’s value, this company finished in third for overall customer satisfaction within the J.D. Power 2025 U.S. Insurance Digital Experience Study, tying with Progressive and coming out ahead of the likes of State Farm, Allstate, Liberty Mutual, and Geico. It’s no wonder greater than 500,000 Costco members have taken advantage of their insurance offer to this point.

Merely switching from a unique insurance company to Connect/American Family can unlock the primary perk: Discounts can be found only for being a Costco member. Remember, nevertheless, that you might need to stop at Costco Optical first, because the hard-to-read high-quality print includes an extended list of disclaimers and exclusions.

Let’s jump right in with the Connect/American Family Premier Safety Discount. This one can apply when all of the drivers in a given household can show 4 years’ value of unpolluted driving, with none traffic violations, insurance claims, or accidents — no matter whether the driving force was at fault or not – during that point. Improve your driving skills with a qualifying class out of your local DMV (or one other accredited group), and you possibly can be in line for the Defensive Driver Discount, too.

Outside of driving skills, there are also discounts that rely upon your automotive having certain built-in safety features. Yes, automakers must include some ADAS technologies by law, but you possibly can still get Connect/American Family discounts even for low-tech equipment like airbags. On the subject of safety, in case you park your automotive in a garage as a substitute of on the road, you possibly can enjoy further financial advantages. That said, it is best to probably examine the high-quality print if that garage is hidden under your home.

Having students within the family can add two additional ways to save lots of. You’ll be able to receive a reduction in case you’re a full-time student with high enough grades, or if there is a student within the family who lives far enough from home. For folk with a student going to highschool not less than 100 miles away, Connect/American Family won’t charge as much so long as they don’t seem to be driving their very own automotive.

Automotive insurance with Connect/American Family may provide added peace of mind through its complimentary roadside assistance program. For Executive Members, assistance is only a phone call away to assist with common concerns like flat tires or jumpstarts. Nevertheless, the coverage won’t pay for parts. A brand new battery is out of the query, and so is the gas itself in case you run out of fuel. Connect/American Family touts lifetime renewability as well, so your policy won’t be cancelled merely since you had to make use of it after a mishap. (Again, though, we’ll emphasize that exclusions apply.)

Speaking of which, if something does go flawed, Connect/American Family is at your service with agents available 24/7. Plus, if problems occur if you’re traveling — and not less than 100 miles from home — you possibly can be reimbursed for out-of-pocket expenses like the associated fee of an overnight hotel stay. The insurance may even pay to have your windshield repaired if it gets cracked, and the corporate will waive the standard glass-repair deductible so long as it doesn’t should be replaced.

As for the underside line, the parents at Insurance Business America say “Costco’s annual premiums are between $50 and $400 cheaper” than the opposite insurers they evaluated. That said, Costco couldn’t crack the highest 15 within the Consumer Reports list of best automotive insurance firms, so your mileage may vary.