Costco Auto Insurance Review [2022]: Does it Make Sense for Costco Members? (2023)

Whether you drive a lot for work or just go shopping once a week, having auto insurance to protect you in the event of an accident is essential.

In fact, most states require drivers to have minimum liability insurance to pay for injuries or damage sustained in an accident. However, you may want to add more protection, which increases the cost of auto insurance.

That's why it helps to qualify for any rebates that could lower the cost of your auto insurance premium. Costco also offers auto insurance, among other insurance policies, and Warehouse Club members may receive discounts on their auto premiums.

But does that mean Costco auto insurance is a good choice for Costco members? Let's examine the answer.

Costco Car Insurance: Is It Worth It?

What is Costco?

Costco is a members-only warehouse retailer with offices in eight countries around the world. The first Costco-branded warehouse opened in Seattle, Washington in 1983. In just six years, Costco had $3 billion in sales.

Today, Costco operates 830 department stores, most of which are located in the United States. Costco also has locations in Canada, Mexico, UK, Japan, Korea, Taiwan, Australia, Spain, Iceland, France and China.

The wholesaler offers its members various goods and services at discounted prices. At Costco, members could shop for high-end electronics, furniture, clothing, jewelry, tires, groceries, and receive discounts on travel,insurancepolicies and car loans.

The company has grown to become the fifth largest retailer in the world. Over 111 million people paid for an annual Costco membership in 2021.

What types of insurance does Costco offer?

Costco offers auto insurance through a partnership with American Family Insurance under the CONNECT brand. CONNECT insurance products are available in 44 states and Washington, D.C. available.

CONNECT auto coverage options

CONNECT car insurance offers the following coverages that you can include in your policy:

• liability for injuries: This kind ofLiability Insurance Coveragecovers the costs of injuries to other drivers if you are in an accident that is your fault.
• liability for property damage: This is coverage for the repair or replacement of a vehicle or property if you are involved in an accident that is your fault.
• collision protection:collision insurancecovers damage to your vehicle caused by a collision with another vehicle or object.
• Comprehensive coverage:comprehensive insurancecovers non-collision related damage to your vehicle such as: B. Damage caused by a storm or a collision with an animal.
• Uninsured driver: This coverage kicks in if you have an accident with an uninsured driver.Insurance coverage for uninsured driverscovers your injury or property damage caused by an accident involving a driver who does not have adequate car insurance.
• Medical Expenses: This coverage helps pay your medical bills if you are injured in a car accident.
• Personal Protection (PIP): This protection covers your medical expenses, lost wages or funeral expenses, regardless of who is at fault in an accident.
• Guaranteed Auto Protection Insurance (GAP).: If you are involved in an accident with a new car, GAP Insurance will pay the difference between the current market value of your vehicle and the original amount of your car loan.
• Roadside Assistance & Towing: This coverage provides support if you have a flat tyre, your battery is dead, you are locked out of your car or in other situations when something is wrong with your car.
• Rental Refund Coverage: This insurance provides a rental refund that covers the cost of a rental car if your own car is damaged in an accident and is being repaired. This coverage differs from rental car insurance, which insures a vehicle you have rented.

Benefits of CONNECT car insurance

Costco members get exclusive access to Costco's coverages because the retailer only offers auto insurance to its members. All Costco members who purchase CONNECT insurance also receive:

• Deductible for glass repairs: When accidental windshield damage could be repaired, Costco waives the deductible you would normally pay to repair your windshield.
• Accident Travel Expense Coverage: This coverage helps you pay for accommodation or travel expenses if you are involved in an accident more than 100 miles from where you live.

Costco Executive Members also receive additional benefits such as free roadside assistance. You also get a lifetime renewal that guarantees your auto insurance policy will always be renewed, even if you've had minor traffic violations or accidents. However, this particular benefit is not available in Maryland or Michigan.

CONNECT products and availability

CONNECT offers more types of insurance policies, and you may be able to save money by bundling your auto insurance with other insurance products on offer.

Connect offers home, rental and household contents insurance. It also offers umbrella insurance policies that provide additional personal liability protection beyond the coverage of your auto, home and other insurance policies.

Costco's CONNECT operates in 44 states and Washington, D.C. available. The six states where CONNECT is not available are Alaska, Louisiana, Maine, North Dakota, Rhode Island and Wyoming.

Despite its wide range of coverage and availability, CONNECT does not have the best track record of customer service. According to the National Association of Insurance Commissioners (NAIC), CONNECT receives a higher than average number of customer complaints than other insurance companies.

Costco Car Insurance: How Cheap Is It?

The cost of Costco auto insurance varies by coverage level. However, there are several discounts you can qualify for to cut costs.

How to find insurance discounts

According to Costco, members who take out CONNECT auto insurance save an average of $583.60 in the first year they have the insurance. CONNECT car insurance offers discounts for safe driving and vehicle security, including:

• Premier Security Discount: This program could reward you for your safe driving behavior by giving you additional discounts on your car insurance. To qualify for this discount you must have a clean driving record with no traffic violations, accidents or claims in the last four years.
• Good driver discount: Similar to the Premier Safety Discount, this discount is available to drivers with safe driving habits. However, this discount is only offered to Costco members based in California.
• Discount for defensive drivers: You can receive this discount by completing a refresher driving course through your state's Department of Motor Vehicles (DMV) and providing CONNECT with a copy of the degree.
• Discount on vehicle security features: Safety features like anti-lock brakes, airbags, automatic seat belts and anti-theft devices can help lower your insurance premiums.
• garage discount: Costco members may get a discount on their auto insurance premiums if they park their cars in a garage overnight instead of exposing them outside to the elements.

In addition, CONNECT offers discounts for teenage drivers who attend school, such as:

• Good student discounts: Auto insurance for teenagers tends to be expensive. If your teen is a good student, their grades could qualify them for a good student discount.
• Student discount: If your son or daughter attends a school more than 100 miles from where you live, you may be eligible for this discount. Your student stays on your policy and is still covered when they are home at weekends or during breaks. If your student has their own vehicle with them at school, you are not eligible for this discount.

Finally, policyholders could save more premiums by adding more cars to their coverage, purchasing multiple policies, or simply keeping their insurance for a while:

• Discount for multiple cars: If you have CONNECT auto insurance policies for more than one car, you may receive lower auto insurance rates.
• Discounts for tenure: These discounts are like an anniversary gift to celebrate how many years you've been a CONNECT customer. These discounts depend on your state, so it's a good idea to check occasionally to see if you qualify for one.
• Bundle discounts: You may receive a discount on your insurance premiums if you purchase multiple insurance policies through CONNECT. You can bundle your auto insurance with your homeowners, renters, or roof insurance policies.

How to maximize savings

There are differentFactors affecting your car insurance rates. To maximize your Costco auto insurance savings with CONNECT, you can select higher deductibles for your coverage.

You can also save money by removingcomprehensive and collisionCovers from your policy when the value of your vehicle is too low to justify the premium you pay for these covers. Remember that you can pay high expenses in the event of an accident without comprehensive insurance.

If you lease your vehicle or are still making payments, your lender may have specific coverage requirements for your car insurance. Most states also have minimum auto insurance coverage, so always check to see if you're required by law.

How to Get an Insurance Quote from Costco Auto Insurance

To learnhow to get car insurancefrom Costco is easy because you can get your quote quickly online or by calling (855) 531-9253.

CONNECT quotation process for car insurance

You don't have to be a Costco member to request a quote, but if you like the quote you're viewing, you must be a Costco member or sign up for their membership, as your membership number is required to purchase the policy.

When applying online, after entering your zip code, you will be redirected to the American Family Insurance CONNECT external website. The information you need to fill in is your:

• first name
• Surname
• Date of birth
• E-Mail-Addresse
• Residential address (including city, state, and zip code)
• How many years you have lived in the residence

CONNECT automatically fills in most of the details from your title and registration documents. It also fills in the liability limit from your current declaration page. Next, you may need to verify the vehicle you wish to insure.

After that, provide information that can help you get various discounts, such as: B. Level of education, completion of a defensive driving course and accident and damage history. You can also add more cars to your policy to get a bundle discount.

Further questions can be:

• What is the zip code of your vehicle?
• Where is this vehicle?
• How is this vehicle mainly used?
• Would you like to add another vehicle to your policy?
• Age first legal in the US?
• Which vehicle do you drive most often?
• Have you had any accidents or damage in the last six years?
• Have you been convicted of traffic offenses in the last six years?
• do you have another driver

Once you complete the online application, you will immediately receive a quote for a six-month Costco auto insurance premium. The offer will also be emailed to you and you have 60 days to respond.

If you like the Costco auto insurance offering, you need a Costco membership to take advantage of it. All Costco CONNECT insurance products are available to members only. These memberships start at $60 per year for Gold Star members and $120 per year for Executive members.

Important factors to consider

Before you join Costco just to get auto insurance, consider how much membership costs. Compare that cost to how much money you save on the insurance policy to see ifCostco insurance is worth it.

On the other hand, if you are a current Costco member, you may want to get a quote for Costco auto insurance even if you are happy with your current insurance provider. You might find that you can save money on your car insurance premiums.

For example, I decided to switch when the six-month bonus offer I received from Costco was almost $57 less than what I'm currently paying. The Costco insurance plan also offered better coverage than my current plan.

Frequently asked questions about Costco auto insurance

bottom line

Costco's CONNECT Insurance has plans that might helpSave money on car insurance. However, CONNECT is not available in six states and you must be a Costco member to access it in the states where it is available.

You don't have to be a Costco member to get an auto insurance quote. You could go through the bidding process to compare it to what thebest car insuranceCompanies offer and decide if a Costco membership is worthwhile.

If you're already a Costco member, you may benefit from bundling your auto insurance with your rental or homeowners insurance to save more on your overall insurance costs. Keep in mind that CONNECT receives more than average customer complaints than other insurance providers.

methodology

FinanceBuzz examines a number of factors with each auto insurance provider to create our ratings. These factors include cost and discounts, complaints and customer satisfaction, coverage, and ease of use. We also collect information from sources such as J.D. Power, AM Best, the National Association of Insurance Commissioners (NAIC) and the Better Business Bureau to ensure we are providing the most useful information to our readers.