Does Costco Sell Car Insurance

This membership warehouse club is known for offering a wide array of services and products, so it’s natural to ask: does Costco sell car insurance? The short answer is yes, but not directly. Costco partners with a major insurance provider to offer exclusive rates and service to its members.

Understanding how this program works can help you decide if it’s the right fit for your needs. We’ll break down everything from the provider details to the potential savings.

Costco does not underwrite or sell insurance policies itself. Instead, it has a long-standing partnership with CONNECT, powered by American Family Insurance. This program is officially called Costco Auto Insurance Program.

It’s an exclusive member benefit. You access it through Costco, but the policies are managed and serviced by CONNECT. Think of it as a curated, members-only marketplace for insurance.

How The Costco Auto Insurance Program Works

The process is straightforward. As a Costco member, you get access to a dedicated insurance agency that negotiates rates on your behalf. You recieve a quote tailored to Costco members.

Here is the typical process:

Visit the Costco Auto Insurance Program website or call their dedicated phone line.
Verify your Costco membership number.
Provide the standard information for a car insurance quote (driver details, vehicle info, coverage needs).
Review the quote provided by CONNECT.
If you choose to purchase, your policy is issued and serviced by CONNECT/American Family.

The Insurance Provider: CONNECT And American Family

It’s important to know who you’re actually buying from. CONNECT is a specialized insurance agency. American Family Insurance is the underwriter, meaning they assume the financial risk of the policy.

American Family is a reputable, large insurer with strong financial ratings. This partnership gives Costco members the buying power of a group, often leading to competitive pricing.

States Where the Program Is Available

The Costco Auto Insurance Program is not available in every state. Coverage is offered in most, but not all, U.S. states. You will need to check the program’s website or call to confirm availability in your specific area.

Some states, like Massachusetts, have different insurance regulations which can affect availability. Always verify directly for the most current information.

Exclusive Benefits For Costco Members

The primary advantage of using this program is the suite of member-only benefits. These are designed to add value beyond just the insurance policy itself.

Potential for Lower Rates: Group buying power often translates to competitive premiums.
Additional Savings: You may qualify for a further discount if you bundle auto insurance with other policies, like homeowners or renters insurance.
Member-Only Deductible Benefits: Some policies include a provision where your deductible is waived if repair costs exceed a certain amount after a covered loss.
Original Parts Guarantee: In the event of a repair, the program often guarantees the use of original manufacturer parts, not aftermarket parts, for vehicles of a certain model year.

How To Get a Quote From Costco Auto Insurance

Getting a quote is simple and does not obligate you to buy. It’s the best way to see if the program offers a competitive rate for your situation.

Step-by-Step Guide To Requesting A Quote

Follow these steps to obtain your personalized quote.

Gather Your Information: Have your Costco membership card, driver’s license(s), and vehicle registration(s) ready. You’ll also need details about your driving history and current coverage.
Choose Your Contact Method: You can get a quote online via the Costco Auto Insurance Program website or by calling their toll-free number. The online tool is usually faster.
Enter Your Details Accurately: Fill out the quote form completely. Inaccurate information can lead to an incorrect quote that will change later.
Review Your Quote Carefully: Examine the coverage limits, deductibles, and any included benefits. Make sure you understand what is and isn’t covered.
Compare with Other Offers: Before making a decision, compare the Costco quote with at least two or three other insurers to ensure you’re getting a good deal.

Information You Will Need To Provide

To get an accurate quote, be prepared to share the following details. Having this information on hand will speed up the process.

Costco Membership Number
Full names and dates of birth for all drivers
Driver’s license numbers and states of issue
Vehicle make, model, year, and VIN for all cars
Annual mileage estimates for each vehicle
Current insurance policy details (if applicable)
Driving history (accidents, violations in the last 3-5 years)

Coverage Options Available Through Costco

The Costco Auto Insurance Program offers the standard suite of auto insurance coverages. This allows you to build a policy that meets your state’s minimum requirements and your personal financial protection needs.

Standard Types Of Auto Insurance Coverage

Here are the common coverage types you can expect to customize.

Liability Coverage: Covers injuries and property damage you cause to others. This is required in almost every state.
Collision Coverage: Pays for damage to your own vehicle from an accident with another car or object.
Comprehensive Coverage: Covers damage to your vehicle from non-collision events like theft, vandalism, fire, or weather.
Personal Injury Protection (PIP) / Medical Payments: Covers medical expenses for you and your passengers after an accident, regardless of fault.
Uninsured/Underinsured Motorist Coverage: Protects you if you’re hit by a driver with no insurance or insufficient insurance.

Additional Policy Features And Riders

Beyond the basics, the program may offer additional features or endorsements. These can provide extra peace of mind for a relatively small increase in premium.

Roadside Assistance: Towing, jump-starts, lockout service, and flat tire changes.
Rental Car Reimbursement: Pays for a rental car while your vehicle is being repaired after a covered claim.
Accident Forgiveness: Prevents your first at-fault accident from causing a rate increase (usually after a certain number of claim-free years).
New Car Replacement: If your new car is totaled shortly after purchase, this can help replace it with a brand new model.

Potential Savings and Discounts

One of the main reasons people look to Costco for insurance is the potential for savings. The program advertises that members could save an average of a significant amount compared to their previous insurer.

Common Discounts Offered

Like most insurers, CONNECT offers a variety of discounts. Make sure to ask about all you might qualify for when getting your quote.

Costco Membership Discount: The core discount for simply being a member.
Multi-Policy Discount: For bundling auto with home, renters, or other insurance.
Multi-Vehicle Discount: Insuring more than one car on the same policy.
Safe Driver Discount: For maintaining a clean driving record.
Paid-in-Full Discount: Paying your annual premium all at once instead of monthly.
Vehicle Safety Feature Discount: For anti-lock brakes, anti-theft devices, etc.

How The Savings Compare

While advertised savings are compelling, your actual savings will depend on your unique profile. Factors like your age, location, driving record, and credit score (where permitted) play a huge role.

The only way to know for sure is to get a personalized quote. It’s a smart financial habit to shop for car insurance every 2-3 years, and including the Costco program in that comparison is wise.

Pros and Cons of Costco Car Insurance

Weighing the advantages and disadvantages can help you make an informed decision.

Advantages Of Using The Program

Member-Only Pricing: Access to rates negotiated for a large group.
Reputable Underwriter: Backed by American Family Insurance, a stable company.
Additional Perks: Benefits like the original parts guarantee add value.
Convenience: Another trusted service accessible through your existing Costco membership.
Generally Positive Customer Service Reviews: Many users report satisfactory experiences with claims and service.

Potential Drawbacks To Consider

Not Available Everywhere: State restrictions may apply.
One Provider Option: You are only getting a quote from CONNECT/American Family, not comparing multiple companies at once.
Membership Requirement: You must maintain a paid Costco membership to initiate and likely to continue the policy.
Your Mileage May Vary: The advertised savings are not guaranteed for every single driver; your quote could be higher than your current insurer.
Limited Brand Choice: If you prefer a different national insurer, you’ll need to go elsewhere.

Frequently Asked Questions (FAQ)

Is Costco Car Insurance Actually Cheaper?

It can be for many members, but it is not automatically cheaper for everyone. The program often offers competitive rates due to group buying power. However, the only way to determine if it’s cheaper for *you* is to get a quote and compare it with other companies.

Do I Need A Costco Membership To Buy The Insurance?

Yes, an active Costco membership is required to obtain a quote and purchase a policy through the Costco Auto Insurance Program. Your membership will likely be verified both at quote and renewal.

What If I Need To File A Claim?

Claims are handled directly by CONNECT/American Family Insurance, not by Costco warehouse staff. You would contact the claims department via the phone number on your insurance ID card or through your online account to report an accident and start the claims process.

Can I Bundle My Home And Auto Insurance With Costco?

Yes, the Costco Insurance Program offers home, renters, and other insurance products through the same partnership. Bundling these policies often qualifies you for an additional multi-policy discount, potentially increasing your overall savings.

How Do I Manage My Policy Or Make Payments?

Policy management, changes, and payments are handled through CONNECT’s customer portal or their customer service line. You will recieve login information for an online account where you can view documents, make payments, and update your policy details.

Final Verdict: Is It Worth It?

So, does Costco sell car insurance? It facilitates it through a trusted partner. The value of the Costco Auto Insurance Program hinges on three key factors: the quote you receive, the importance of the member benefits to you, and the convenience of having another service tied to your membership.

The process is low-risk. Getting a quote is free and does not require a commitment. For any Costco member shopping for insurance, it absolutely deserves a place in your comparison shopping. The potential for savings and added benefits make it a compelling option, but as with any financial product, due diligence is essential. Always compare multiple quotes to ensure you are securing the best possible coverage at the most competitive price for your individual circumstances.