Costco Car Insurance Review [2022]

Here’s everything you need to know about Costco car insurance.

UPDATED: Aug 26, 2022Fact Checked

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Aug 26, 2022

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If you’re searching for the best car insurance company in your area and are a Costco member, you may want to consider Costco car insurance. Costco offers its members several car insurance options under the name CONNECT insurance.

Costco’s CONNECT insurance offers a variety of coverage options and discounts to its members. Unfortunately, some policies and auto insurance perks require an additional fee for nonmembers.

What types of coverage does Costco offer?

CONNECT auto insurance policies are offered through the American Family Insurance Company. CONNECT by American Family Insurance provides the following coverage options to Costco members:

  • Bodily injury liability
  • Property damage liability
  • Collision coverage
  • Comprehensive coverage
  • Uninsured/underinsured motorist coverage
  • Medical payments
  • Personal injury protection

In addition to these common types of auto insurance coverage, CONNECT offers add-on options for additional protection. These options include the following:

  • New car replacement. Costco’s insurance will pay to replace your vehicle if it is totaled in an accident. 
  • GAP coverage. This coverage pays the difference between what your car is worth and what you owe on the loan. 
  • Rental car reimbursement. This coverage reimburses any fees you pay for a necessary rental vehicle after a covered event.
  • Roadside assistance. CONNECT’s roadside assistance covers towing, spare tire installation, lockout services, and more. 

If you’re looking for a robust auto insurance plan and add-ons to help you maintain peace of mind while on the road, you may want to look into CONNECT’s options. 

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Benefits for Costco Members

Costco members are entitled to additional discounts and perks regarding a CONNECT car insurance policy. These benefits include the following:

  • Lifetime renewability
  • Various discounts on coverage
  • Glass repair deductible waiver
  • Stolen key coverage
  • Accident travel expense

While individuals can purchase car insurance through Costco without being members, the benefits listed above are only available to Costco Executive members. A Costco Executive membership costs $120 a year.

How much is CONNECT car insurance?

Here’s a look at how Costco auto insurance full vs. minimum coverage rates stack up.

The amount someone will pay for Costco car insurance varies based on many factors. But the average CONNECT auto insurance policy costs $1,068 per year.

Costco Car Insurance Rates by Age

Age is one of the factors that impacts how much you may spend on car insurance. Below we'll take a look at Costco's average annual car insurance rates for various age groups.

Costco Car Insurance for Teens

Teenagers pay the highest rates for car insurance in many cases. CONNECT car insurance costs anywhere from 27% to 35% more than the national average.

Costco’s rates are more than double USAA’s rates for the same demographic. 

Young Adult Driver Rates with Costco

Costco car insurance is around 5% higher than the national average for young adults.

Age can truly affect what you are paying. Knowing the averages based on your age can help you find affordable coverage.

Costco Rates for Adults

Costco’s rates for adult drivers are around 7% higher than the national average.

Costco Average Annual Full Coverage Adult Driver Auto Insurance Rates
Driver Age and GenderCostco Full Coverage RatesU.S. Average
18-year-old male with a clean record$4,601.42 $6,034.06
18-year-old female with a clean record$3,988.43 $5,007.67
25-year-old male with a clean record$1,343.60 $1,795.32
25-year-old female with a clean record$1,296.11 $1,661.09
30-year-old male with a clean record$1,249.54 $1,669.41
30-year-old female with a clean record$1,205.38 $1,544.60
45-year-old male with a clean record$1,040.44 $1,431.27
45-year-old female with a clean record$1,064.64 $1,433.60
55-year-old male with a clean record$986.81$1,357.49
55-year-old female with a clean record$1,009.76 $1,359.70
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Adult rates are double USAA’s rates for the same demographic. 

Costco Rates for Senior Drivers

Senior drivers pay 6% to 9% more with CONNECT than the national average.

Costco’s rates are $600 higher than GEICO’s rates for similar coverage for seniors.

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Costco Car Insurance Rates by Driver History

Another thing that car insurance companies look at when calculating rates is your driving history. If you have any traffic violations on your record, you may end up paying more for inusrance.

The table below shows how auto insurance rates may change for a 45-year-old driver with various traffic violations.

Costco Average Annual Full Coverage Auto Insurance Rates by Driving History
Driver Age and GenderCostco Full Coverage RatesU.S. Average
45-year-old male with a clean record$1,040.44 $1,431.27
45-year-old female with a clean record$1,064.64 $1,433.60
45-year-old male witha a DUI$1,796.58 $2,507.31
45-year-old female witha a DUI$1,840.53 $2,513.28
45-year-old male witha an accident$1,613.62 $2,072.14
45-year-old female witha an accident$1,655.77 $2,079.29
45-year-old male witha a ticket$1,310.12 $1,761.96
45-year-old female witha a ticket$1,336.38 $1,762.90
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Below we'll take a look at some of these in more detail.

Costco Car Insurance With a Speeding Ticket

If you have a speeding ticket on your driving record, you can expect to pay higher-than-average rates for car insurance. For example, Costco’s rates for individuals with one speeding ticket on their record are around $500 more per year than the national average.

State Farm offers rates for a similar demographic that is nearly $1,000 cheaper per year. 

Costco Car Insurance After an Accident

CONNECT’s insurance rates are nearly 30% higher than the national average for people who have an accident on their driving record. 

Still, rates with AAA and Allstate are more expensive than those with Costco. 

Costco Rates with a DUI

Rates for auto insurance after a DUI are almost the same with Costco as the national average. Still, they are nearly $1,000 more per year than State Farm’s rates for coverage after a DUI conviction. 

DUI convictions can lead to hefty cost increases when it comes to your auto insurance. Checking out multiple companies' rates could save you a bundle.

Costco Rates for People with Poor Credit

A poor credit score can impact your rates, as insurance companies consider people with bad credit riskier than those with a strong credit score.

Costco’s average rates for people with poor credit scores are around 7% higher than the national average.

Minimum Coverage with Costco 

Costco’s rates for liability-only policies are around 22% higher than the national average.

Driver Age and GenderCostco Minimum Coverage RatesU.S. Average
16-year-old male with a clean record$2,409.63 $3,019.38
16-year-old female with a clean record$2,201.12 $2,639.66
18-year-old male with a clean record$2,065.40 $2,588.04
18-year-old female with a clean record$1,790.74 $2,147.52
30-year-old male with a clean record$490.98$631.93
30-year-old female with a clean record$474.27$584.84
45-year-old male with a clean record$412.01$545.38
45-year-old female with a clean record$1064.64$1433.6
55-year-old male with a clean record$388.77$514.62
55-year-old female with a clean record$398.03$515.64
65-year-old male with a clean record$405.57$536.86
65-year-old female with a clean record$415.23$537.93
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Costco Average Annual Minimum Coverage Auto Insurance Rates

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CONNECT car insurance policyholders pay nearly $700 more per year than GEICO customers for the same minimum coverage.

Full Coverage with Costco

Full coverage rates with CONNECT car insurance are 27% higher than the national average. 

Costco Average Annual Full Coverage Auto Insurance Rates
Driver Age and GenderCostco Full Coverage RatesU.S. Average
16-year-old male with a clean record$5,659.22 $7,421.90
16-year-old female with a clean record$5,409.59 $6,792.65
18-year-old male with a clean record$4,601.42 $6,034.06
18-year-old female with a clean record$3,988.43 $5,007.67
30-year-old male with a clean record$1,249.54 $1,669.41
30-year-old female with a clean record$1,205.38 $1,544.60
45-year-old male with a clean record$1,040.44 $1,431.27
45-year-old female with a clean record$1,064.64 $1,433.60
55-year-old male with a clean record$986.81$1,357.49
55-year-old female with a clean record$1,009.76 $1,359.70
65-year-old male with a clean record$1,018.40 $1,400.94
65-year-old female with a clean record$1,042.08 $1,403.22
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Still, Allstate and AAA have higher rates for full coverage policies. 

Does Costco offer discounts for car insurance?

Costco offers a variety of discounts to its CONNECT policyholders, though many discounts are only available to Executive members. The company’s discount options include the following:

Some discounts can help individuals save as much as 25% on their insurance premiums. If you qualify for a discount on CONNECT car insurance, speak to a company representative to determine whether you’re eligible.

Is Costco car insurance any good?

Costco’s CONNECT car insurance may be a good option for some people, but it depends on your needs. The company offers coverage options and opportunities for discounts that may appeal to some, but rates for insurance could be higher with CONNECT than with other companies.

Costco insurance reviews suggest the company needs to work on its claims process to improve customer satisfaction. Before purchasing a policy with Costco, you should find and compare rates from other auto insurance providers in your area to determine which company works best for you.

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What are the pros and cons of Costco car insurance?

There are several benefits to a car insurance policy with Costco:

  • Benefits for Executive members
  • Discounts on coverage
  • Lifetime renewability options

However, there are some downsides to a Costco car insurance policy:

  • Rates higher than the national average
  • Lack of availability in every state
  • A high number of customer complaints
  • Fees for membership

Everyone has different needs and budgets for car insurance, so evaluate these pros and cons to decide if Costco car insurance is right for you.

Costco Car Insurance: The Bottom Line

Costco offers CONNECT car insurance powered by American Family. The company provides several options for coverage and the potential for discounts based on several factors. 

But Costco car insurance may be more expensive than similar policies with other companies. So it’s a good idea to find and compare rates from multiple insurers before committing to a CONNECT auto insurance policy.

Frequently Asked Questions

What other types of insurance does Costco offer?

In addition to car insurance, Costco offers the following options for insurance coverage:

  • Condo
  • Renters
  • Umbrella
  • All-terrain
  • Motorcycle
  • Boat
  • RV
  • Classic car
  • Flood
  • Rental property

In which states is Costco car insurance available?

CONNECT car insurance is available in every U.S. state except Alaska, Louisiana, Maine, North Dakota, Rhode Island, and Wyoming.

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