Is Costco insurance sustainable?

As a company, Costco places importance on sustainability, human rights and community action. Costco advertises sustainability as it relates to their business operations, including using water efficiently, reducing inequalities, protecting marine life and taking action on climate change. The company also notes an emphasis on human rights in all steps of the business, from employee rights to the rights of suppliers and those making the materials used in Costco’s products. Finally, Costco focuses on giving back to communities by earmarking 1 percent of its pre-tax profits for charitable contributions.

How do I file an insurance claim with Costco?

Filing a claim is usually straightforward, but the information you need to provide will depend on the type of claim you are reporting. For instance, when filing a homeowners claim, your insurance company will ask for basic information, such as your name, policy number and the date the loss occurred. It may also ask you to complete paperwork documenting pertinent details surrounding the loss and set up an appointment for a claims adjuster to inspect the damage to your home (when applicable). Many insurance professionals recommend that you file your claim as soon as possible to avoid unnecessary delays. When you’re ready, you can file a claim with CONNECT by: Calling 1-888-404-5365 Reporting the claim on CONNECT’s online policy portal For life insurance, you can file a claim with Protective Life by: Calling 1-844-740-5433

Does Costco sell American Family insurance?

Costco insurance is underwritten by CONNECT, which is powered by American Family. If you are looking specifically for a policy from American Family, it may be beneficial to request a quote from the carrier directly.

Is Costco insurance worth it?

It depends. Costco insurance comes with many built-in benefits for Costco Executive Members which could make their insurance policies worthwhile. Its customer service ratings for auto insurance are not impressive, so shoppers looking for service above all else may want to look elsewhere.

Why doesn’t this company have a Bankrate Score?

Bankrate aims to rate every company we review, but we are sometimes unable to provide a star rating. This often happens when an insurer works with multiple third parties to underwrite their policies. The quality of the policy you get will be informed by the coverage options, financial strength and other policies of each underwriting company.

Costco insurance review 2024

Written by

Lara Vukelich

Edited by

Mariah Posey

Edited by

Mariah Posey

Updated Dec 18, 2024

At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict ,this post may contain references to products from our partners. Here's an explanation of .Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our .

At a glance

Bankrate's take

Policyholders who value unique home insurance benefits over robust car insurance policies and are also members of Costco might consider Costco insurance as their company of choice.

Gap insurance offered for qualifying cars
24/7 auto claims agents
Unique home insurance endorsements
Limited home insurance discounts
Life insurance discounts of about 15 percent
Medical exams required for life insurance

New

What’s new with Costco?

In early 2023, Costco stopped selling home and auto insurance policies in California, adding to the list of insurers limiting coverage in the Golden State.

Costco car insurance review

Costco might not be the first company that comes to mind when you think of insurance, but the company does offer some insurance products to its members. Costco sells car and home insurance policies to customers through CONNECT, powered by American Family.

Costco’s car insurance policies are relatively basic, and personalization options are sparse, so Costco car insurance may be a good fit for someone looking for a simple auto policy. In addition to the standard coverage types you would expect with a major car insurance company, Costco car policies also offer gap insurance and new car replacement on eligible vehicles. To be eligible to purchase a Costco insurance policy, you must be a Costco member. Currently, Costco coverage is available in 43 states and Washington, D.C.

In addition to exclusive discounts reserved for Costco members, Costco Executive Members may get extra peace of mind through a lifetime renewability benefit offered on eligible Costco auto policies, as well as roadside assistance.

Pros and cons of Costco car insurance

When requesting car insurance quotes, it can be hard to differentiate one company from the next. Creating a list of pros and cons for Costco auto insurance could offer a helpful visual representation of how the carrier stacks up, and it may also help you determine where your priorities lay regarding your auto policy.

Pros

Costco members may find it convenient to purchase their insurance where they shop for other items
Gap insurance is offered
Claims agents are available 24/7

Cons

Few endorsements are available
No mobile app
Higher-than-baseline number of NAIC complaints regarding auto policies

Costco car insurance cost

While specific car insurance rates for Costco auto insurance are not publicly available, understanding national averages can provide context. On average, full coverage car insurance costs about $2,458 per year or $205 monthly, and minimum coverage averages around $678 annually or $56 monthly. For a personalized estimate that reflects your unique situation, contact a Costco auto insurance agent.

Costco customer satisfaction

A good customer experience can be just as important as getting a cheap car insurance rate. To evaluate this metric, Bankrate reviews several third-party scores, including J.D. Power scores. These scores indicate how happy existing customers are with their Costco auto insurance. Costco insurance is offered through CONNECT, powered by American Family, and the company’s AM Best financial strength rating indicates a positive history of delivering on claim payouts. While CONNECT was not scored in the 2024 J.D. Power Insurance Digital Experience Survey, American Family ranked highly in both Service and Shopping.

Costco auto insurance customer complaints

The National Association of Insurance Commissioners (NAIC) rates companies based on complaints. A complaint index score of 1.0 indicates an average number of complaints, while a higher index score means the company gets more complaints than average. According to the NAIC, CONNECT receives an above-average number of complaints for its private passenger car insurance policies.

Costco car insurance discounts

In addition to an exclusive discount for Costco members, CONNECT offers a few other unique discount opportunities that may help you save on your car insurance, including:

Garaging discount: If you keep your cars in a garage overnight, you may be eligible for a discount.
Tenure discount: Hitting time-related milestones might get you a cheaper premium than what CONNECT would offer to a new customer.
Good student discount: This discount recognizes academic achievement for full-time students meeting certain qualifications, potentially reducing the cost of coverage.
Student away discount: If your student lives at school more than 100 miles away from home, you could earn a discount (as long as your student doesn’t have a vehicle with them at school).
Defensive driver discount: Taking a DMV-approved defensive driver course and presenting your completion certificate to CONNECT could net you some savings.
Multi-car and multi-product discounts: Insuring multiple vehicles with CONNECT may entitle you to a multi-car discount. Bundling different insurance types, like auto with homeowners or umbrella policies, could also lead to discounts that reward you for consolidating your insurance needs with CONNECT.
Premier safety discount: For those with spotless driving records over the past four years, this discount rewards safe driving habits.
Vehicle safety features: Discounts may be available for vehicles equipped with safety features such as anti-lock brakes, airbags, automatic seatbelts and anti-theft devices.
Defensive driver discount: Completing an approved "refresher" driving course could earn you a discount, acknowledging your commitment to safe driving.

Keep in mind that discount eligibility varies depending on the state you live in. If you are concerned with price and need the cheapest car insurance company, you may want to contact Costco car insurance for a quote and to see which discounts apply to you.

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Costco home insurance review

Costco home insurance policies are more robust than the company’s car insurance offerings and could be a good choice for Costco members looking for customizable coverage. Costco members can choose from a variety of endorsements to personalize their policy and fill in coverage gaps. Optional add-ons include coverage for adventure equipment, personal injury, water backup, earthquake and mine subsidence.

Pros and cons of Costco homeowners insurance

If you’re shopping for the best homeowners insurance company, you may want to consider the perks and drawbacks of Costco’s offerings to get a holistic view of the insurer.

Pros

Unique endorsements available that may not be offered by other companies
Wildfire loss prevention may be included at no additional cost in certain states
CONNECT offers exclusive homeowners benefits for Costco executive members

Cons

CONNECT homeowners insurance not rated by J.D. Power
No live chat
Not as many discounts as some competitors

Costco home insurance cost

While specific premium data for Costco home insurance is not publicly available, understanding how insurance costs are calculated can be helpful. The national average for home insurance, according to data from Quadrant Information Services, stands at $2,304 per year, or around $192 per month, for a policy with $300,000 in dwelling coverage. This benchmark can serve as a useful comparison when evaluating the potential cost of Costco's home insurance. Various factors influence home insurance rates, and seeing where Costco's rates fall in comparison to this national average may assist in determining the most suitable rate for your needs.

Costco customer satisfaction

Home insurance customer service ratings often consider a wide range of variables. These can include everything from how easy it is to get a policy quote to how claims are processed. Generally speaking, a higher score is a good thing and a lower score indicates less customer satisfaction.

Costco homeowners claims satisfaction

While CONNECT is not rated by the 2024 J.D. Power Property Claims Satisfaction Study, its parent company American Family is. American Family earned an above-average score of 877 out of 1,000 compared to the study average score of 869. More than 6.000 people were surveyed about how happy they are with factors like estimating process, claims settlement, and digital tools.

J.D. Power Property Claims Satisfaction Study

Costco home insurance customer complaints

CONNECT's NAIC complaint index data for its home insurance product is less favorable than its auto product. The insurer received more complaints than considered average for a company of its size against its home insurance product.

Costco home insurance discounts

Shoppers looking for the cheapest homeowners insurance company may be interested in the following Costco home insurance discounts offered by CONNECT:

Age of home discount: New homes may qualify for a discount, since newer homes may be at less risk for damage.
Renovation discount: If you replace your roof, update your heating and cooling system, renovate your electrical system or redo your plumbing, you might save money on Costco home insurance.
Tenure discount: Just like with auto insurance, if you keep your home insurance policy with Costco for several years, you could earn a discount.
Home protection discounts: You may earn a discount if you have smoke alarms, a professional monitoring system, a video doorbell or other protection devices installed in your home.
Claims-free discount: If you haven't filed a claim in the last five years, you may be eligible for a discount in some states.
Multi-product discounts: Bundling your home insurance with other policies like auto or umbrella insurance through CONNECT might lead to additional discounts.

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Costco life insurance review

Like its auto and home insurance, Costco life insurance is not written through Costco, itself. Instead, Costco has partnered with insurance company Protective to offer Member Advantage Life Term policies, at around 15 percent savings for Costco members compared to the general life insurance product market. However, only term life is available, with two term limit options (10 or 20 years). With this in mind, Costco life insurance through Protective may be best for those looking for a cheap life insurance policy with little-to-no frills.

Pros and cons of Costco life insurance

Pros

Costco members get exclusive access to a Protective Member Advantage Life Term policy
Policy may be a good choice for those new to life insurance, since few options are available
Some optional riders may be included at no additional cost

Cons

Company states that medical exams are required in most cases
Cannot purchase online
Protective Life scored below average in the 2023 J.D. Power U.S. Individual Life Insurance Study

Costco life insurance riders

Endorsement options can be important for those looking for the best life insurance company. Luckily, Protective Life offers a few add-ons that could be of interest, including:

Accidental death benefit rider: This option can provide a higher death benefit payout if you pass away due to an accident.
Children’s term life insurance rider: Parents may consider adding this rider to provide life insurance protection for their children, which the child could then convert into their own policy once they reach the age of 25.
Income provider option endorsement: Including this endorsement (offered at no additional charge) will split your death benefit payout into payments rather than paying it as a lump sum.
Terminal illness accelerated death benefit endorsement: If you’re diagnosed with a terminal illness, this endorsement would allow you to access up to 60 percent of your death benefit (or $1 million, whichever is less) before you pass. In eligible states, this endorsement is included at no additional cost.
Waiver of premium rider: If you become disabled, this rider may waive your life insurance premium.

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The amount of coverage you need depends on many factors, including your age, income, mortgage and other debts and anticipated funeral expenses.

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Policy type

Whole life insurance combines life insurance with an investment component.

Coverage for life
Tax-deferred savings benefit if premiums are paid
3 variations of permanent insurance: whole life, universal life and variable life include investment component

Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.

Fixed premium over term
No savings benefits
Outliving policy or policy cancellation results in no money back

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Compare Costco with other insurers

Bankrate’s Costco insurance review may be your first stop in trying to determine if this company can meet your needs. Remember that you’d need to be a member of Costco to be eligible for coverage. If you are eligible, it may still be worth requesting quotes from some comparable alternatives below before settling if Costco insurance is right for you.

Featured Costco Not scored Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings Read Review	Travelers Rating: 4.2 stars out of 5 4.2 Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings Cost & ratings Rating: 4.1 stars out of 5 4.1 Coverage Rating: 4.2 stars out of 5 4.2 Support Rating: 4.4 stars out of 5 4.4 Read Review
OVERVIEW Bankrate identified key carrier features, coverage offerings, discounts and more
Purchasing Costco insurance may be a good idea for Executive Members with fairly straightforward coverage needs. Costco insurance may not be best for customers that prefer to work directly with an agent or those looking for highly-rated customer service. Read More	If you are looking for a company that offers highly personalized coverage, Travelers could be a good choice. The carrier has numerous auto and home endorsements to help you build a policy that fits your unique needs. Read More
STANDOUT FEATURES These features are some of the carrier’s most impressive
Life insurance members discount New home discount Tenure discount for car policies	Hybrid/electric car discount New car replacement endorsement Travelers Affinity offers specia
AVG FULL COV. AUTO RATE Average national annual cost of a full coverage auto insurance policy
No rates available	$1,996
J.D. POWER AUTO SCORE J.D. Power’s Auto Claims Satisfaction Study assesses customer satisfaction with the claims experience on a 1,000-point scale
Not Scored	684/1000
AVG HOME RATE Average national annual cost of a home insurance policy with $300K in dwelling coverage
No rates available	$2,448
J.D. POWER HOME SCORE J.D. Power’s Property Claims Satisfaction Study assesses customer satisfaction with the claims experience on a 1,000-point scale
Not Scored	845/1000
AM BEST RATING AM Best ratings assess companies’ financial strength based on historical ability to pay out claims, among other financial obligations
Not Scored	A++(Superior)

Why you can trust Bankrate

Read our full methodology

Our insurance editorial team includes licensed agents with decades of combined experience, and we used our intimate knowledge of the industry to conduct this in-depth Costco insurance review.

years of industry expertise

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

Is Costco a good insurance company?

Bankrate’s insurance editorial team includes licensed agents with real-world agency experience. We understand the research required to find the best insurance company that ticks your boxes. Our goal is to give you relevant information to help you feel empowered during your insurance shopping journey.

Whether or not Costco insurance is a good company depends on your needs. If you aren’t already a member of Costco (or don’t plan on becoming a member soon), Costco insurance might not be a viable option. However, if you are a Costco member — as well as an Executive member (as you get extra perks) — it could be worth exploring Costco insurance, especially if you’re looking for unique homeowners insurance benefits.

What are real-life customers saying about Costco?

To provide a more realistic idea of customer experience with Costco insurance policies, we’ve sourced actual policyholder feedback from two popular online forums: Reddit and Bogleheads.org. These forums foster a broad range of conversations and offer a space for personal anecdotes and questions about getting insurance through Costco.

Reddit users have mostly positive remarks about car insurance purchased through Costco. Many appreciate the price and note how much cheaper the rates are compared to major competitors. However, several people have remarked that coverage is very basic and premiums can increase significantly from one renewal to the next.

Reddit User 1*

Aug 22, 2023

Cheaper premiums

I've got it since they were cheaper than anyone else in Albuquerque. Even though they hiked up my rate with the latest renewal, they're still several hundred dollars cheaper than GEICO, my previous insurer, and I got even better deductibles.

via Reddit

Reddit User 2*

Jan 8, 2024

Auto insurance through Costco - Yes/No?

I've had them for years for an old vehicle that isn't driven much. It's been extremely cheap. I've never had to actually file a claim yet though, so I don't know what that's like. They're a kinda bare bones place. Their website is really nothing. Don't expect a company with a bunch of bells and whistles.

via Reddit

Bogleheads.org

Bogleheads users also had mostly good things to say about Costco insurance, with one major concern being that CONNECT no longer writes home policies in California. One user also noted that when they filed a homeowners insurance policy claim, they were not able to choose all of the sub-contractors who were hired to make repairs.

Bogleheads User 1*

Mar 28, 2023

Coverage experience

I have home, auto and umbrella with Costco. I have not had loss experience, but rates are very low. The only wrinkle I found was a limit on umbrella. I believe $2 million was the highest they would go. You don’t know how satisfied you are until you have a loss!

via Bogleheads.org

Bogleheads User 2*

Jul 7, 2018

Costco customer service

Covered by American Family and its predecessor thru Costco, while we lived in Oregon. (Moved last summer and had to change). One homeowners claim for significant ice dam[age] related interior water damage. Their response was great and payment fair.

via Bogleheads.org

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

Costco company details

Customers can reach Costco regarding their insurance policies by phone or internet.

Sales, customer service and claims: 1-888-404-5365
Roadside assistance: 1-888-742-4572
Website available at: connectbyamfam.com/costco
Sales email: customersfirst@connectbyamfam.com

State availability

Costco car insurance and Costco home insurance are available in 43 states and Washington, D.C. The states where Costco insurance is not available include AK, CA, LA, ME, ND, RI, WY. Costco life insurance is offered in every state except New York.

Costco tools and benefits

While you search for the best car insurance company, you may want to consider the following products and perks that CONNECT offers to Costco members:

Specialty insurance: CONNECT offers specialty insurance for motorcycles, classic cars, ATVS, RVs and boats is available for Costco members.
Commercial insurance: CONNECT offers Costco members insurance that is tailored for business use, such as commercial auto policies and business owner policies.
Umbrella insurance: Umbrella insurance provides extra liability protection above what you carry on your homeowners and auto policy.
Customer portal: Policyholders can make changes to their policy, pay bills, request ID cards and more with CONNECT’s full-service full-service online customer portal.
Glass deductible waiver: Your car insurance deductible may be waived if you get a chip in your windshield that can be repaired without replacing the entire windshield.
Accident travel expense coverage: This one may be particularly helpful to frequent road trippers. If you get into an accident that renders your car undrivable and you are more than 100 miles from home, this coverage can help with your out-of-pocket accommodation or travel expenses.

Frequently asked questions about Costco

As a company, Costco places importance on sustainability, human rights and community action. Costco advertises sustainability as it relates to their business operations, including using water efficiently, reducing inequalities, protecting marine life and taking action on climate change. The company also notes an emphasis on human rights in all steps of the business, from employee rights to the rights of suppliers and those making the materials used in Costco’s products. Finally, Costco focuses on giving back to communities by earmarking 1 percent of its pre-tax profits for charitable contributions.
Filing a claim is usually straightforward, but the information you need to provide will depend on the type of claim you are reporting. For instance, when filing a homeowners claim, your insurance company will ask for basic information, such as your name, policy number and the date the loss occurred. It may also ask you to complete paperwork documenting pertinent details surrounding the loss and set up an appointment for a claims adjuster to inspect the damage to your home (when applicable).

Many insurance professionals recommend that you file your claim as soon as possible to avoid unnecessary delays. When you’re ready, you can file a claim with CONNECT by:
- Calling 1-888-404-5365
- Reporting the claim on CONNECT’s online policy portal
For life insurance, you can file a claim with Protective Life by:
- Calling 1-844-740-5433
Costco insurance is underwritten by CONNECT, which is powered by American Family. If you are looking specifically for a policy from American Family, it may be beneficial to request a quote from the carrier directly.
It depends. Costco insurance comes with many built-in benefits for Costco Executive Members which could make their insurance policies worthwhile. Its customer service ratings for auto insurance are not impressive, so shoppers looking for service above all else may want to look elsewhere.
Bankrate aims to rate every company we review, but we are sometimes unable to provide a star rating. This often happens when an insurer works with multiple third parties to underwrite their policies. The quality of the policy you get will be informed by the coverage options, financial strength and other policies of each underwriting company.

On This Page

Costco insurance review 2024

The Bankrate promise

At a glance

Costco car insurance review

Pros and cons of Costco car insurance

Pros

Cons

Costco car insurance cost

Costco customer satisfaction

Costco auto insurance customer complaints

Costco car insurance discounts

Get personalized auto insurance quotes

Costco home insurance review

Pros and cons of Costco homeowners insurance

Pros

Cons

Costco home insurance cost

Costco customer satisfaction

Costco homeowners claims satisfaction

Costco home insurance customer complaints

Costco home insurance discounts

Get personalized home insurance quotes

Costco life insurance review

Pros and cons of Costco life insurance

Pros

Cons

Costco life insurance riders

Compare Costco with other insurers

Costco

Travelers

Is Costco a good insurance company?

What are real-life customers saying about Costco?

Reddit

Bogleheads.org

Costco company details

State availability

Costco tools and benefits

Frequently asked questions about Costco

Is Costco insurance sustainable?

How do I file an insurance claim with Costco?

Does Costco sell American Family insurance?

Is Costco insurance worth it?

Why doesn’t this company have a Bankrate Score?