OneTivi.com — Is Costco auto insurance really cheaper? A recent analysis by AutoInsurance.com found that Costco members enjoy 10% to 30% lower full-coverage rates than the national average. However, actual savings hinge on individual factors such as age, ZIP code, driving history, and chosen coverage levels. In this comprehensive guide, we’ll explain how Costco’s auto insurance program works, compare its rates to industry averages, outline the key discounts, share customer satisfaction insights, and help you decide whether this Costco member perk makes sense for you.
(toc)
What Is Costco Auto Insurance and How Does It Work?
Costco auto insurance is available exclusively to members through CONNECT, powered by American Family Insurance. This partnership allows Costco members to access competitive rates and additional benefits not typically available through standard providers. To get started, you simply provide your Costco membership number when requesting a quote online or by phone.
Policies include standard liability and full-coverage options. Perks include a glass repair deductible waiver, accident travel expense coverage, and lifetime policy renewability for qualifying members. These add-ons provide a layer of value that enhances the appeal of CONNECT over traditional auto insurance providers.
Is Costco Auto Insurance Really Cheaper Compared to the National Average?
To answer the big question: Is Costco auto insurance really cheaper? Yes, in many cases—but it depends. Industry data shows that Costco’s CONNECT program often undercuts market rates. For example, American Family Insurance customers pay an average of $2,598 per year for full coverage. In contrast, many CONNECT policyholders report premiums averaging around $1,070 annually, representing $50 to $400 in annual savings depending on driver profile and state.
Moreover, Executive Costco members often receive even deeper discounts. However, the best way to gauge potential savings is by comparing personalized quotes across insurers.
Costco Auto Insurance Discounts: How You Can Save Even More
One major reason Costco's auto insurance stands out is its variety of exclusive discounts for members. These offers stack on top of already competitive base rates, giving policyholders a real chance to cut costs.
Here are some of the most popular Costco auto insurance discounts:
- Costco Membership Discount: Especially beneficial for Executive members.
- Safe Driver Discount: Available for drivers with a clean driving record.
- Vehicle Safety Feature Discount: Earn savings for having airbags, anti-lock brakes, or anti-theft devices.
- Multi-Car & Multi-Policy Discount: Save when bundling multiple vehicles or combining home and auto coverage.
- Tenure Discount: The longer you stay with CONNECT, the more you can save over time.
Customer Satisfaction: What Real Costco Members Are Saying
Customer reviews of Costco auto insurance through CONNECT are generally favorable. Trustpilot users rate the provider 4.5 out of 5 stars, highlighting efficient claims processing and helpful customer service. In J.D. Power’s customer satisfaction studies, American Family Insurance (CONNECT’s parent company) scores slightly above average in several categories, including pricing and interaction.
However, not all feedback is positive. The National Association of Insurance Commissioners (NAIC) notes that CONNECT receives a higher-than-average volume of complaints related to claims resolution. As with any insurance, experiences may vary depending on your location, policy type, and individual circumstances.
Who Should Consider Costco Auto Insurance?
Costco auto insurance is ideal for:
- Costco Executive Members seeking maximum value.
- Safe drivers looking for rewards and low rates.
- Policy bundlers interested in combining home and auto insurance.
- Drivers in states where CONNECT is highly rated, such as California and Oregon.
It may not be the lowest-cost option for every driver, especially those with complex needs or extensive driving infractions. Still, it’s worth a quote if you’re already a member or considering joining Costco for other benefits.
Should You Switch to Costco Auto Insurance?
So, is Costco auto insurance really cheaper? For many U.S. drivers, the answer is yes—especially when considering the combination of base rate savings, exclusive discounts, and added coverage perks. Data suggests the average first-year savings is around $595.86 when switching to CONNECT through Costco.
Ready to find out how much you could save? Visit Costco's official insurance page to get a free quote or contact CONNECT directly. If you've had experience with Costco auto insurance, drop a comment below and let others know how it worked for you!
