Many organizations partner with insurance providers to offer specialized group rates to their members. So, does Costco offer car insurance? The short answer is yes, but not directly. Costco has a long-standing partnership with an insurance provider to offer members exclusive rates and service.
This program is a significant member benefit. We will explain exactly how it works, who provides the coverage, and how you can check your eligibility.
Understanding this offering can help you decide if it is the right choice for your auto insurance needs.
Does Costco Offer Car Insurance
Costco does not underwrite or sell car insurance policies itself. Instead, it partners with a third-party insurance agency to provide this service exclusively to its members. For many years, this partner was Ameriprise Auto & Home Insurance.
However, in a major shift in 2024, Costco announced a new partnership with Connect, powered by American Family Insurance. This change is crucial for current and prospective members to understand.
The program is designed to leverage Costco’s large membership base to negotiate competitive group rates and provide dedicated customer service that aligns with Costco’s reputation for value.
Who Actually Provides The Insurance?
The car insurance offered through Costco is provided by Connect, powered by American Family Insurance. Connect is the agency that manages the program and handles all customer inquiries, quotes, and policy servicing.
The insurance policies themselves are underwritten by one of several reputable insurance companies within the American Family Insurance group, depending on your state of residence. This means when you get a quote, you are dealing with Connect, but the actual insurance contract is with a licensed carrier.
This structure is common for affinity group programs. It allows Costco to offer a vetted service without taking on the financial risk of being an insurance company.
The Evolution From Ameriprise To Connect
For over two decades, Costco members accessed car insurance through Ameriprise. The program was generally well-regarded for its competitive pricing. In early 2024, Costco transitioned this partnership to Connect.
This change means that even if you had a policy with Ameriprise through Costco, you would have been migrated to the new Connect program. If you are researching now, all new quotes and policies will come through Connect.
The reasons for the change likely involve seeking improved coverage options, better technology, or more favorable terms for members. It’s a reminder that affinity programs can evolve, so it’s always good to stay informed.
Core Benefits Of The Costco Auto Insurance Program
The primary advantage of getting car insurance through Costco is access to potential savings. The program is built on the premise of group buying power.
- Member-Only Discounts: The base rates are negotiated for Costco members, which can lead to lower premiums compared to standard market rates.
- Additional Savings Opportunities: You may qualify for further discounts, such as for bundling home insurance, having a safe driving record, or installing safety features in your vehicle.
- Dedicated Member Service: Connect provides customer service lines specifically for Costco members, aiming for a service experience that reflects Costco’s values.
- Convenience: For existing Costco members, it’s a convenient option to explore during your regular insurance shopping cycle.
How To Get A Costco Car Insurance Quote
Getting a quote is a straightforward process, but you must be a Costco member to complete it. Here is a step-by-step guide.
Step 1: Verify Your Costco Membership
You will need an active Costco membership. Both Gold Star and Executive members are eligible. Your membership number will be required during the quoting process.
If you are not a member, you cannot get a quote or purchase a policy through this program. You can join Costco easily online or at a warehouse.
Step 2: Gather Your Necessary Information
To get an accurate quote, have the following information ready for all drivers and vehicles you want to insure:
- Driver’s license numbers and birth dates.
- Vehicle Identification Numbers (VINs).
- Current odometer readings.
- Details of your current insurance policy and coverage limits.
- Information about your driving history, including any recent accidents or violations.
Step 3: Contact Connect For A Quote
There are two main ways to request a quote:
- Online: Visit the Costco Services website and navigate to the auto insurance section. You will be directed to Connect’s online quote portal.
- By Phone: Call the dedicated Connect phone line for Costco members. Speaking with an agent can be helpful if your situation is complex.
The online tool is usally the fastest method. You will input all your information and receive a preliminary quote. A licensed agent may follow up to finalize details.
Step 4: Review And Compare Your Quote
Once you receive your quote, review it carefully. Pay close attention to:
- The coverage types and limits (liability, comprehensive, collision, etc.).
- The deductible amounts you have chosen.
- Any listed discounts applied.
- The total premium for the policy term (e.g., six months).
It is essential to compare this quote with at least two or three other quotes from different insurance companies. This ensures you are getting a truly competitive rate.
Evaluating Coverage And Customer Experience
Price is important, but it’s not the only factor. You should also evaluate the coverage options and the quality of service.
Standard Coverage Options Available
The Connect program through Costco 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 needs.
- Bodily Injury & Property Damage Liability: Covers injuries and damage you cause to others.
- Personal Injury Protection (PIP) or Medical Payments: Covers medical expenses for you and your passengers.
- Collision Coverage: Pays for damage to your car from an accident.
- Comprehensive Coverage: Covers non-collision damage (theft, fire, hail, vandalism).
- Uninsured/Underinsured Motorist Coverage: Protects you if you’re hit by a driver with little or no insurance.
- Additional Options: Roadside assistance, rental car reimbursement, and custom parts/equipment coverage are typically available.
Understanding The Claims Process
Filing a claim is a critical moment. With the Costco program, you would file any claim directly through Connect. They act as your intermediary with the underwritting insurance company.
Reports suggest the claims process is designed to be member-friendly, but experiences can vary. It’s wise to read recent customer reviews specifically about the claims handling under the new Connect partnership to set realistic expectations.
Customer Service And Support
Customer service is provided by Connect’s dedicated team for Costco members. Support is available by phone and online.
A potential advantage is that you are not just another policyholder; you are a Costco member within a specialized program. This can sometimes lead to more attentive service, though your mileage may vary as with any large insurer.
Who Is The Ideal Candidate For This Insurance?
The Costco auto insurance program is not for everyone. It tends to be a particularly good fit for certain types of drivers.
Best For Costco Members Seeking Bundled Value
If you are already a loyal Costco member who values the warehouse’s model, this program is convenient to consider. The potential for member-only discounts is the core appeal.
It can be especially advantageous if you also need homeowners or renters insurance, as bundling multiple policies often unlocks significant additional savings through the program.
Drivers With Clean Records May Benefit Most
Like most insurers, the best rates are typically reserved for drivers with a clean history—no at-fault accidents or major moving violations in the last three to five years. If your record is spotty, the discounts may be less pronounced, but it’s still worth getting a quote.
Considerations For High-Risk Drivers
If you have a DUI, multiple serious violations, or a history of accidents, you may find that the Costco/Connect program, like many standard insurers, may not offer the most competitive rate. You might need to seek out companies that specialize in high-risk coverage.
Always disclouse your full driving history honestly when getting a quote to avoid issues later.
Common Limitations And Considerations
Before you decide, be aware of some potential limitations of the program.
State Availability Restrictions
The Costco auto insurance program is not available in every state. Due to insurance regulations, some states are excluded.
As of now, the program is not available in Alaska, Hawaii, Louisiana, Massachusetts, Michigan, New York, Oklahoma, Rhode Island, and Wyoming. You should always check the official Costco Services website for the most current list of eligible states, as this can change.
The Importance Of Shopping Around
Never assume the Costco member price is the absolute lowest available. The insurance market is highly competitive. A rate that is good for one driver in one location may not be the best for another.
Make it a habit to compare quotes from different companies every one to two years. You can use independent insurance agents or online comparison tools to get a broad market view.
Potential For Rate Increases Over Time
A common pattern with any insurance company is to offer a very competitive introductory rate to win your business. After the first policy term (e.g., six months), your rate may increase at renewal, even if your driving record hasn’t changed.
This is not unique to Costco’s program but is a standard industry practice. It’s another reason why ongoing comparison shopping is so important.
Frequently Asked Questions (FAQ)
Is Costco Car Insurance Cheaper?
It can be cheaper for many members due to group discounts, but it is not guaranteed. The only way to know if it is cheaper for you is to get a personalized quote and compare it with other insurers. Your driving profile, location, and vehicle all play a huge role.
Can I Get Costco Insurance Without A Membership?
No, you cannot. An active Costco membership is a strict requirement to receive a quote or purchase a policy through the Connect partnership. The program is a membership benefit.
How Do I Contact Costco Car Insurance?
You contact Connect, the managing agency. The phone number and online quote portal are found on the official Costco Services website under the “Insurance” section. Do not call Costco warehouses, as they cannot handle insurance inquiries.
What Other Insurance Does Costco Offer?
Through its partners, Costco also offers homeowners insurance, renters insurance, motorcycle insurance, and specialty coverage like boat and RV insurance. Life insurance and health insurance options are also available through other dedicated providers on the Costco Services site.
Was Costco Insurance Previously With Ameriprise?
Yes, for over 20 years, Costco’s auto and home insurance program was administered by Ameriprise. The transition to Connect, powered by American Family Insurance, occured in 2024. Existing Ameriprise policies were transferred to the new provider.
Final Verdict: Is It Worth It?
So, does Costco offer car insurance? Yes, through its valued partner Connect. The program is a legitimate and potentially money-saving benefit for Costco members.
The key to making a smart decision is to treat it like any other major purchase: do your homework. Get a detailed quote, ensure the coverage meets your needs, and compare it with other market offers.
For members with good driving records who appreciate the convenience and trust the Costco ecosystem, it is certainly an excellent option to include in your search. Just remember that in the world of insurance, loyalty should be to your wallet—always shop around to ensure you’re getting the best value for your specific situation.