Costco Auto Insurance Review (2024)

According to our Costco auto insurance review, Costco does not technically sell auto insurance. However, Costco members can take advantage of discounts on homeowners, auto, and umbrella policies through CONNECT powered by American Family Insurance. Costco auto insurance savings average $595 in the first year.

UPDATED: Mar 18, 2024Fact Checked

Justin Wright

Licensed Insurance Agent

Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...

Licensed Insurance Agent

Tim Bain

Licensed Insurance Agent

Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.

Licensed Insurance Agent

UPDATED: Mar 18, 2024

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

UPDATED: Mar 18, 2024

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

UPDATED: Mar 18, 2024Fact Checked
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Costco

Average monthly rate for good drivers:

N/A

A.M. Best rating:

A

Complaint level:

Low

Pros

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

Cons

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

Final Verdict: Review of Costco

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. Keep reading our Costco auto insurance review to learn more about the company.

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 You Should Know About Ameriprise Auto & Home Insurance (Costco)

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.

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.

Ameriprise Auto & Home Insurance (Costco) Insurance Coverage Options

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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Ameriprise Auto & Home Insurance (Costco) Insurance Rates Breakdown

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 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.

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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.

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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 auto insurance quotes for adult drivers are around 7% higher than the national average. 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.

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

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.

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State Farm offers rates for a similar demographic that is nearly $1,000 cheaper per year. Learn more in our State Farm auto insurance review.

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.

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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.

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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.

Full Coverage Auto Insurance Monthly Rates by Credit Score
CompanyGood CreditFair CreditBad Credit
AAA$135$165$245
Allstate$166$197$296
American Family$116$136$203
Farmers$140$161$269
Geico$82$100$148
Hartford$120$155$230
Liberty Mutual$177$226$355
Nationwide$120$133$166
Progressive$109$138$206
State Farm$91$118$200
Travelers$107$128$194
U.S. Average$123$148$226

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.

Liability Auto Insurance Average Rates From Top Providers
Insurance CompanyMonthly Rates
Allstate$61
American Family$44
Farmers$53
Geico$30
Liberty Mutual$67
Nationwide$44
Progressive$39
State Farm$33
Travelers$38
USAA$22
U.S. Average$45

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.

Full Coverage Auto Insurance Rates From the Top Providers
Insurance CompanyMonthly Rates
Allstate$160
American Family$117
Auto-Owners$87
Farmers$87
Geico$80
Liberty Mutual$174
Nationwide$115
Progressive$105
State Farm$86
Travelers$99
USAA$59
U.S. Average$119

Still, Allstate and AAA have higher rates for full coverage policies.

Ameriprise Auto & Home Insurance (Costco) Discounts Available

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.

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

What is Costco Auto Insurance?

Costco Auto Insurance is an insurance program offered by Costco Wholesale Corporation in partnership with a licensed insurance provider. It aims to provide members with affordable and reliable auto insurance coverage.

How can I get Costco Auto Insurance?

To obtain Costco Auto Insurance, you must be a Costco member. You can apply for insurance coverage by visiting the official Costco website or by contacting their designated insurance provider directly.

Is Costco Auto Insurance available in all states?

No, Costco Auto Insurance is not available in all states. The coverage options may vary depending on the state you reside in. It is recommended to check with Costco or their insurance provider to determine if the program is available in your area.

What types of coverage does Costco Auto Insurance offer?

Costco Auto Insurance provides various types of coverage, including liability coverage, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and more. The specific coverage options may vary depending on your location and the insurance provider.

Are Costco Auto Insurance rates competitive?

Costco Auto Insurance aims to offer competitive rates to its members. However, it’s important to compare rates from multiple insurance providers to ensure you’re getting the best deal for your specific needs.

Can I bundle my auto insurance with other Costco services?

Yes, Costco offers the option to bundle your auto insurance with other services such as homeowners insurance, renters insurance, and more. Bundling insurance policies can often lead to discounts and added convenience.

What is the claims process for Costco Auto Insurance?

In the event of an accident or other covered incident, you should contact Costco Auto Insurance’s designated claims department or the insurance provider directly. They will guide you through the claims process, which typically involves reporting the incident, providing necessary documentation, and working with an adjuster to assess the damages.

Can I manage my Costco Auto Insurance policy online?

Yes, Costco Auto Insurance offers online policy management tools. Through their website or mobile app, you can view your policy details, make payments, request changes, and access other relevant information related to your insurance coverage.

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Justin Wright

Licensed Insurance Agent

Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...

Licensed Insurance Agent

Tim Bain

Licensed Insurance Agent

Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.

Licensed Insurance Agent

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Reviews
for Ameriprise Auto & Home Insurance (Costco)

3.71 (202 reviews)
1
May 25, 2021

jheoaustin

F***** BS cheater, Stay Away

This is a freakin cheater company. Stay away from this scammer. They increased my premium for almost 50% after a year, citing that they made a mistake in the first place, so 1st year premium should have been higher. I consider this a bait-and-switch. While we were preparing the switch due to this freakin bs, they sneak charged me $522 without any notification. Absolutely nothing happened for 1+ year, no claim or accident, whatsoever. I am g...
This is a freakin cheater company. Stay away from this scammer. They increased my premium for almost 50% after a year, citing that they made a mistake in the first place, so 1st year premium should have been higher. I consider this a bait-and-switch. While we were preparing the switch due to this freakin bs, they sneak charged me $522 without any notification. Absolutely nothing happened for 1+ year, no claim or accident, whatsoever. I am going to fight that bs charge and will switch at whatsoever cost, which can't be higher than staying with this fraudster. STAY AWAY FROM THIS CHEATER! PS: I am a loyal customer of Costco, and still values highly of the busiess. But I can't believe that it trusted this worthless cheater to [REDACTED WORD] off their customers.
1
May 14, 2021

Taylor_Applegate

Horrible costumer serveice

Extremely disappointed with this company. I love Coscto and wanted to get my auto insurance though them. I was in an accident about a year ago and my car Insurance agent told me that would have it all covered for me and to not worry out anything. Also a year later my agent told me se had been talking to my health insurance to get things figured out and I called my health insurance and they said my agent had not tried anything at all. I have now b...
Extremely disappointed with this company. I love Coscto and wanted to get my auto insurance though them. I was in an accident about a year ago and my car Insurance agent told me that would have it all covered for me and to not worry out anything. Also a year later my agent told me se had been talking to my health insurance to get things figured out and I called my health insurance and they said my agent had not tried anything at all. I have now been trying to get ahold of my car insure agent and she still won't reply tp my emails or call me back. Will be switching my car insurance. Most upsetting process I had to go though. Did I all myself, no point to get this insurance if you have to do everything yourself anyways.
1
January 29, 2021

Rob_Thomas

Ridiculous company, stay away!!

This insurance company is ridiculous. I have never been in a car accident, I have am a card carrying defensive driver. Costco has been soliciting Auto insurance to use for years and every time it's the same story. If you have ever in the last 5 years had a chip in your windshield and even insured to see if the insurance had a discount or coverage to get it fixed they will decline to insure you. We had a wild snow storm and had a lot of sand on th...
This insurance company is ridiculous. I have never been in a car accident, I have am a card carrying defensive driver. Costco has been soliciting Auto insurance to use for years and every time it's the same story. If you have ever in the last 5 years had a chip in your windshield and even insured to see if the insurance had a discount or coverage to get it fixed they will decline to insure you. We had a wild snow storm and had a lot of sand on the road with some small gravel that made it in. We got a chip and I remembered the auto policy had something for chips. I asked about it over the phone and didn't want to pay a dedectable so we just had it repaired out off pocket. Because the insurance who was progressive at the time knew about it they filed it as a no payout claim. Now this ridiculous Costco insurance company keeps soliciting and when we call to get a quote they act like we are awful people and they tell us we can't be customer of theirs because of a window chip. Costco needs to find a new insurance company to do business with, I am losing my faith in who Costco chooses to recommend to it's customers with.
1
November 17, 2020

Jfiedler

No explanation of premium increase

Have been with this company for six years in California, moved to Nevada and called for change of address and was SHOCKED to hear they have increased my insurance by $800 every six months. Spent many days talking to five different people to get an answer of why. Nobody had an answer, besides it’s just the way it is. To each person I explained that I’ve had no accidents, no claims, no tickets, nothing. It made no difference to anybody. So the ...
Have been with this company for six years in California, moved to Nevada and called for change of address and was SHOCKED to hear they have increased my insurance by $800 every six months. Spent many days talking to five different people to get an answer of why. Nobody had an answer, besides it’s just the way it is. To each person I explained that I’ve had no accidents, no claims, no tickets, nothing. It made no difference to anybody. So the next thing I will do is complain to Costco. It is frustrating to me that I have been a loyal customer, yet they cannot be loyal to me, or even explain a simple increase in my premium.
5
July 2, 2020

KingSIGGA

Connect is the best!

Connect (formally Ameriprise) has been a really great company to have insurance from. They have always been the cheaper option in comparison to other insurance companies. Connect is offered thru Costco, so you already know Connect is a reputable company. When the pandemic hit, they were among the first to offer reimbursement of previous paid premiums. Connect also offered reduced prices on their already cheaper plans to us. They are very understa...
Connect (formally Ameriprise) has been a really great company to have insurance from. They have always been the cheaper option in comparison to other insurance companies. Connect is offered thru Costco, so you already know Connect is a reputable company. When the pandemic hit, they were among the first to offer reimbursement of previous paid premiums. Connect also offered reduced prices on their already cheaper plans to us. They are very understanding company to have. The best part about Connect is that they are 100% based company here in the USA!
5
June 17, 2020

mrtoddler

Ameriprise has great customer service.

Great customer service. Handled my claim very well. Always easy to reach someone when I need to call them.
4
January 20, 2020

Money2020

Ameriprise insurance

1) Excellent customer care 2) Easy to reach 3) ETA for service is acceptable 4) claims are quickly followed 5) Low cost compared to many other insurance 5) Negatives -no coverage in some states
5
January 11, 2020

miche

good company

they are a great company. they are very customer oriented. they handle claims quickly. the representatives are nice.
2
December 14, 2019

tvlngman

No Rental Car or Loaner Car Coverage!

I am a fairly new customer with Ameriprise for Auto and Umbrella Coverage. There were no issues with them until I recently realized they do not cover you for rental car insurance and they also do not cover you when you car dealer gives you a loaner car to use while yours is being repaired. I have never had car insurance that didn't cover you in those circumstances so was quite surprised to find this out. When you call them they have a recordin...
I am a fairly new customer with Ameriprise for Auto and Umbrella Coverage. There were no issues with them until I recently realized they do not cover you for rental car insurance and they also do not cover you when you car dealer gives you a loaner car to use while yours is being repaired. I have never had car insurance that didn't cover you in those circumstances so was quite surprised to find this out. When you call them they have a recording saying that Ameriprise is changing to Connect (an American Family Company) so I am hoping they make a change for the better or I will be shopping for another insurance company.
5
November 22, 2019

ambidesign

Ameriprise Auto

I've had other companies throughout the years, and was pleasantly surprised when the local Costco magazine listen an Ameriprise option for insurance. I called in to compare quotes and received a quick and professional service. The agents were friendly, personable and precise when answering a question. The coverage was identical to the previous company, however, Ameriprise saved me additional $500 per year.
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