If you have recently renewed your car insurance, you have probably already noticed that prices have shot up. In our country, the average cost of insurance already exceeds 2,600 dollars a year, 2,600!! So it is time to look for “non traditional” options, and in that gap, Costco has played its cards well, because yes, it has car insurance. It is strange to think that the same place where you buy toilet paper in giant packs can also offer car insurance, but that is not the important part. Is their insurance really worth it?
More and more expensive
Everything has its logic ( even if we do not agree with it). Cars have increasingly expensive parts, more technology and more extras, you know. But accidents keep happening, and inflation does the rest. Insurers “cannot absorb” (yep) that cost. By the end of 2025, a full coverage policy is around 2,670 dollars per year… It’s families that cannot handle so much expense, don’t you think?!
Here is where Costco comes in
Yes, Costco has a car insurance, but be careful, because Costco is not the insurer. They provide the brand and the access, but behind it is Connect, backed by American Family Insurance (a well know in the sector). So, let’s say you are taking out a standard insurance policy with the Costco label.
What the policy covers
- Liability
- Collisions
- Comprehensive coverage
- Uninsured motorist protection
- medical expenses.
- roadside assistance
- Rental car
- Lodging (if you have an accident far from home.)
Exclusive advantages for members
As it is a service designed only for members, Costco members, especially Executive members, can access additional discounts and other rates, and if you have a clean driving record, the price can improve even more.
Is there anything to know beforehand?
Of course. The most important thing is that it is not a very flexible insurance, and if you are looking for very specific coverage, such as ridesharing or mileage based policies, this insurance will not be very useful. Another thing you should know is that it is not available in all states. For example, California or Florida are no longer accepting new policies, so you should know this before getting excited about new insurance.
The membership
This is the toll you have to pay. You need to be a Costco member to access this insurance, which implies an annual fee and your shopping at these stores. You may need to review your financial situation to see whether it is really worth it for you or not.
And how is customer service?
According to official data, complaints are slightly above the national average, and for example, not having a dedicated mobile app can be inconvenient if you are someone who wants to do everything from your phone.
So, who is it worth it for?
Mainly for Costco members who are not looking for anything unusual in their policy, and for families who want to centralize all their services under well known brands.
Is it worth looking elsewhere?
If you want maximum customization, 100 percent digital management, or very specific coverage, other insurers, whether traditional or newer ones, will probably suit you better. As almost always, comparing several offers is still the smartest move to get exactly what you need.
Savings?
For certain profiles yes, but maybe not for everyone. That is why it is important to know what you are signing up for and what you really need for your car.