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Is a Costco car insurance policy available to you? Is it worth the money? To help you decide, this article will deep-dive into Costco car insurance reviews, coverage options, perks, and more to help you decide. While drivers can purchase car insurance plans through Costco, American Family Insurance is the company that backs those plans through CONNECT. 

Our team spent 1,950 hours delving into the car insurance industry by analyzing over 4,000 online reviews and surveying 8,500+ customers to find the best auto insurance companies. After a thorough review, we give Costco car insurance an overall rating of 4.2 out of 5.0 stars.

Our Costco Car Insurance Review And Methodology

Costco has a long list of car insurance discounts and benefits but is lacking in coverage and availability. The company isn’t available in every state.

If you’re already a Costco member and want basic insurance without too many frills, Costco car insurance may have a great deal for you. The insurer includes useful perks with every insurance policy, including glass repair, stolen key coverage, and travel accident benefits.

How We Rated Costco Car Insurance

We refresh our review standards multiple times per year to keep our information current. Overall, our insurance research falls into six main categories:

  • Industry standing
  • Availability
  • Coverage
  • Cost and discounts
  • Customer service
  • Technology

Part of this research included examining millions of data points from Quadrant Information Services to provide the average car insurance premiums charged by top providers. Below, you can see how Costco car insurance through CONNECT scores out of 5.0 in each category.

Industry Standing: 4.3 Stars

To determine a company’s business value in the industry, we check its Better Business Bureau (BBB) rating, AM Best score, and total market share. The BBB analyzes the customer service records, business practices, and licensing information of different companies. AM Best looks at an insurance provider’s financial strength, among other factors.

American Family doesn’t have the strongest share of the car insurance market, but does get good ratings from both the BBB and AM Best. For having a standing in the car insurance industry that is strong but not perfect, American Family gets a high rating from us.

Availability: 3.5 Stars

To rate insurance availability, we consider what states the company offers coverage in and what kind of special exclusions it has. Since you can only get a Costco car insurance policy by being a Costco member, the company gets a middle-of-the-road rating. 

Coverage: 3.8 Stars

When considering what car insurance company to go with, you likely want a provider that offers the standard types of car insurance drivers put in their policies, plus plenty of add-ons. Costco’s auto insurance through CONNECT offers a fair amount of coverage options. 

However, the company lacks specific add-ons that are common in the industry, so we give it an above-average score. 

Cost And Discounts: 4.7 Stars

Most insurance providers offer very different costs and discounts. American Family has a generous amount of discounts, so we give it a high rating. 4.7 out of 5.0 stars due to its generous amount of discounts and low costs.

Customer Service: 4.7 Stars

Our team examines hundreds of customer reviews from sites like the BBB and Trustpilot. We also look at findings and scores from J.D. Power consumer studies, complaint ratios from the National Association of Insurance Commissioners (NAIC), and what customers report on our own consumer surveys.

American Family has low customer satisfaction ratings across the BBB and Trustpilot, but this is largely because there aren’t many negative reviews on these sites to begin with. American Family’s unhappy customers make up a very small portion of its overall policyholder population. The provider also shows positive scores from J.D. Power, so we give it a high service rating.

Technology: 4.0 Stars

For this last category, we look over customers’ experiences with providers through its website, apps, and other technology. American Family has well-rated apps on the App Store and Google Play – for both its mobile app and usage-based insurance app.

Costco Auto Insurance Quick Facts

Founded: 1976
Availability: 44 states
American Family AM Best financial strength rating: A
American Family BBB rating: A

Costco began as Price Club in 1976, which only served small businesses at first. After realizing it could make more money by getting low prices for the public, Costco remodeled the warehouse club industry. CONNECT is a company that partners with multiple insurers to bring Costco customers the right coverage for their specific needs.

Costco car insurance is sold through CONNECT by American Family Insurance. Some sites may state that Ameriprise is the company that backs Costco car insurance, but Ameriprise was bought by American Family in 2019 and renamed CONNECT. 

Where Is Costco Auto Insurance Not Available?

CONNECT sells American Family Insurance in 44 states total. Here are the states where Costco’s auto insurance is not available:

  • Alaska
  • Maine
  • Louisiana
  • Rhode Island
  • West Virginia
  • Wyoming

Costco Car Insurance Industry Ratings

American Family Insurance has an A rating from the BBB but isn’t accredited. It received rating from AM Best, attesting to the company’s financial strength.

American Family is one of the largest auto insurance companies in the U.S., with 2.11 percent of the national market share and $5.8 billion premiums written in 2022, according to the NAIC. However, its share isn’t large when compared to Geico’s or State Farm’s market shares.

CONNECT by American Family ranks well above average for customer satisfaction in the J.D. Power 2022 U.S. Auto Insurance Study℠ in California. American Family alone also remains above average in the Midwest, northern Midwest, and Southwest U.S. regions.

How Much Does Costco Car Insurance Cost?

It’s hard to say how much a Costco car insurance policy would cost you because the cost of car insurance differs from one policyholder to the next. While we can’t give you an exact number, Costco claims that members reported saving an average of $587 their first year after switching.

The major factors that car insurance companies typically consider when determining your premium are your:

  • Driving record
  • Claim history
  • Credit score
  • Years of driving experience 
  • Location and ZIP code
  • Age
  • Car’s age, mileage, make, and model
  • Previous insurance coverage

Full-Coverage Car Insurance Cost Comparison

Full-coverage car insurance protects you, your passengers, and your car in several types of situations. The coverage level typically includes liability, collision, and comprehensive insurance. 

American Family has full-coverage policies for $128 per month or $1,537 per year. This is well below the national average of $1,730 per year. Many national providers offer cheaper premiums:

Car Insurance ProviderAverage Monthly CostAverage Annual Cost
Erie Insurance$103$1,238
Auto-Owners Insurance$111$1,337
State Farm$123$1,481
American Family Insurance$128$1,537

What Is Costco’s Cheapest Auto Insurance Coverage?

Minimum-coverage car insurance may be the right option if your finances are limited. However, a policy with only the minimum amount of insurance won’t cover your vehicle if you’re at fault in a collision.

American Family has minimum-coverage policies for $57 per month or $685 per year. This is slightly above the $635 per year national average.

Car Insurance ProviderAverage Monthly CostAverage Annual Cost
Auto-Owners Insurance$29$349
Erie Insurance$38$459
State Farm$45$543
American Family Insurance$57$685

Costco Car Insurance Rates By Driving Profile

Your driving profile greatly impacts your premium rates, especially if you have any speeding or DUI convictions. If you have a driving record with recent accidents and traffic violations, most insurers will consider you a high-risk driver to insure. 

Costco’s car insurance through CONNECT is no exception. However, in every category, American Family’s full-coverage insurance is far less expensive than the national average.

Driving ProfileAmerican Family
Average Annual Cost
Average Annual Cost
1-5 mph over limit
21-25 mph over limit
Stop sign violation$2,061$2,280
One accident$1,935$2,689
Two accidents$2,408$3,761

Costco Car Insurance Rates By State

Your individual insurance premium will vary depending on factors like your location. In the table below, we’ve listed out the average car insurance rates for all the states we could get from Quadrant Information Services for American Family Insurance. You may find different rates being a Costco member, however. 

These averages are based on male and female married 35-year-old drivers with good credit and clean driving records.

StateAmerican Family Average Annual CostState Average Annual Cost
North Dakota$1,156$1,366
South Dakota$1,288$1,652

Costco Car Insurance Rates By Age

Your age has a big influence over your car insurance rates, especially if you’re a teen driver. In the following table, you can see American Family’s average full-coverage rates for multiple age groups.

Keep in mind that the following average rates are for teens who buy their own policy. Families who add these new drivers to their family policies can save more money.

AgeAmerican Family Average Monthly CostAmerican Family Average Annual Cost

Costco Car Insurance Rate Comparison For 16-Year-Olds

Here’s how American Family’s car insurance compares to other providers for 16-year-olds.

Car Insurance CompanyMonthly Average RateAnnual Average Rate
Erie Insurance$284$3,410
Auto-Owners Insurance$294$3,533
State Farm$345$4,146
American Family Insurance$407$4,888

Costco Rate Comparison For 21-Year-Olds

Here’s how American Family’s rates for 21-year-olds compare to rates from other providers.

Car Insurance CompanyAnnual Average RateMonthly Average Rate
Auto-Owners Insurance$2,074$173
Erie Insurance$2,103$175
State Farm$2,322$194
American Family Insurance$2,469$206

Costco Auto Insurance Discounts

American Family offers numerous attractive discounts that reward young motorists and safe drivers in particular.

Costco Discount

Eligibility Details


Rewards policyholders simply for being Costco members

Good driver

Costco’s good driver discount rewards safe drivers
(only available in California)

Premier safety

Rewards drivers who’ve had spotless records for the past four years

Defensive driver

Rewards drivers who complete a state-certified defensive driver course

Vehicle safety feature

Rewards drivers with vehicles that have safety features like air bags, anti-lock brakes, automatic seat belts, and anti-theft devices


Rewards drivers who park their vehicles in garages

Good student

Rewards full-time students who receive high marks in school

Student away

Rewards student drivers that live more than 100 miles away and only drive the car when home for breaks


Rewards drivers who insure multiple cars under one Costco policy


Rewards policyholders who bundle multiple policies together. For example, homeowners can earn discounts by bundling their home and auto insurance policies


Rewards long-standing customers

Costco Usage-Based Insurance Discount

If you have safe driving habits, you could earn up to a 20-percent discount by enrolling in American Family’s usage-based car insurance program KnowYourDrive®. Unlike some other telematic programs, you won’t get penalized for bad driving habits. Just by enrolling, you’ll get a 10-percent introductory offer.

Here’s a breakdown of what the KnowYourDrive app monitors:

  • Hours driven
  • Hard braking
  • Evening driving between 6 p.m. and 12 a.m.
  • Late-night driving between 12 a.m. and 4 a.m.
  • Speeding 10 mph above the limit
  • Using your phone
  • Average speed
  • Trips less than five minutes

The app tracks how distracted you are when driving. If you make a handheld phone call, use or let a passenger actively use your phone, you could lose points. You can still use your phone to do things like listen to music and send a text or call via voice command. 

KnowYourDrive earns 4.7 out of 5.0 stars on the App Store and 4.5 out of 5.0 stars on Google Play.

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Costco Auto Insurance Coverage

You can get all standard coverage options with CONNECT car insurance, including:

  • Liability insurance: Bodily injury liability coverage pays for the medical bills of other parties and property damage liability covers the repairs to other parties’ property. This coverage applies to accidents you’re found at fault for.
  • Collision insurance: This pays for repairs to your vehicle after a collision.
  • Comprehensive insurance: This insurance takes care of your car’s damages from fire, floods, theft, vandalism, and other environmental impacts.
  • Medical payments coverage (MedPay): This covers you and your passengers’ bodily injuries after a car-related incident.
  • Personal injury protection (PIP): PIP covers your medical bills like MedPay, but adds on coverage for lost wages and funeral costs.
  • Uninsured/underinsured motorist coverage (UM/UIM): This covers your injuries and car damages if you get into an accident with a driver who has little or no insurance.

An infographic table that shows what the six standard types of insurance do and don't cover, and where they're required.

On top of 24/7 insurance claims reporting by phone and online policy management, all Costco car insurance policies come with these additional perks:

Costco Car Insurance PerkDetails
Glass Repair Deductible WaiverIf your windshield can be repaired instead of replaced, CONNECT will cover your glass deductible.
Stolen Key CoverageComprehensive insurance policies cover stolen keys automatically. If the cost to replace your locks is less than $250, you won’t have to pay a deductible.
Accident Travel ExpenseIf you get into an accident more than 100 miles from home, Costco car insurance coverage will contribute toward your unexpected lodging and travel expenses.
Premier Safety DiscountIf everyone on the policy has a clean driving record without any traffic violations, accidents, or claims in the past four years, this discount kicks in.

Costco doesn’t offer an auto insurance app for reporting claims, managing your policy, or viewing your insurance card.

While any Costco member can get a policy, customers that have a higher-tier membership are eligible for additional benefits:

  • Roadside assistance: If you have a Costco Executive membership, your insurance policy will automatically come with roadside assistance coverage.
  • Lifetime renewability: Costco Executive members also receive lifetime renewability – meaning Costco won’t cancel your policy for accidents or moving violations (excluding serious infractions).

Costco Auto Insurance Add-Ons

These are some add-ons that can be purchased in addition to the standard types of auto insurance:

  • New car replacement: If your new car is totaled, this option will pay to replace it with the same make and model up to 110 percent of the MSRP. To qualify, it must be in the first 15,000 miles or before your first year of ownership has passed.
  • Guaranteed asset protection (GAP): Gap insurance will pay the difference between your car’s value and the amount you have left on your loan if it’s totaled after the first year of coverage. It extends to 120 percent of your car’s value.
  • Rental car reimbursement: With this coverage, you can get reimbursed for using a rental car up to the amounts you specify in your policy.
  • Roadside assistance and towing: This covers towing, dead battery assistance, spare tire installation, lockout services, and fluid deliveries. You’re covered up to $75 per occurrence.

Does Costco Cover Rideshare Drivers?

While American Family carries rideshare insurance, CONNECT doesn’t seem to offer it for Costco members. If you drive professionally for Uber, Lyft, or a food delivery service, you’ll need to get a policy from another insurer.

Can Costco Cover Classic Cars?

CONNECT covers classic cars for Costco members, though there’s limited information about what that entails. If you have a car that’s classified as a classic or antique vehicle, CONNECT can cover you regardless of model year.

Can Costco Cover SR-22 Insurance?

Unless you’ve been convicted of a serious driving violation like a DUI or other kind of high-risk behavior on the road, it may not matter to you that Costco doesn’t list SR-22 insurance among its coverage options. Drivers who need to fill out the SR-22 form to show they’re maintaining coverage for three years will need to go with another car insurance provider.

What Costco Is Missing

Costco’s auto insurance with American Family has several add-ons and perks, but it’s missing a few common coverage and discount options:

  • Accident forgiveness
  • Diminishing deductible benefits
  • OEM-parts replacement coverage
  • Rideshare insurance
  • Hybrid/EV car discount
  • New car discount

Other Costco Insurance Products

Costco car insurance is part of the company’s discounted offerings called Costco Services. Costco Services provides several other insurance products from American Family and other companies:

  • Condo and home insurance
  • Renters insurance
  • Umbrella insurance
  • Specialty insurance
  • Health and vision insurance
  • Business insurance
  • Life insurance, by Protective Life
  • Pet insurance, by Figo
  • Identity theft protection, by Complete ID™
  • Costco Travel

Costco Insurance Customer Reviews

Costco’s American Family car insurance has a fairly good reputation among customers, but still shows a pattern of negative qualities, according to some reviews.

Positive American Family Car Insurance Reviews

At the time of publication, there were only two favorable reviews left on the BBB:

“We’ve received good service with American Family agents (Colorado) and have experienced good support and follow through with home and auto claims or concerns.”

– Becky W. via BBB

“I’ve been with AFI since 2005 and they are the only affordable home and car coverage I could find. So yes I would give a five-star rating and they always answer my questions, emails, texts, and phone [calls].”

– Nikkie L. via BBB

Negative American Family Car Insurance Reviews

If you scan for Costco car insurance reviews left on the American Family BBB page, you’ll find that many people aren’t satisfied with its service.

Here are a few examples of negative Costco car insurance reviews:

“Got a raise of my premium by $161 which is above a 40-percent increase. Called them to ask for explanation and the answer was [that] everyone got their premium raised. … One customer service [rep] tried saying it may be because the car got older by one year.”

– Roman T. via BBB

“Costco advertises car lockouts on roadside assistance as an executive member benefit. It’s a bait-and-switch situation and I’m never using AM Fam again.”

– Anita L. via BBB

“I was rear-ended. I have been without my car for one month. No contact for 26 days from American Family. They do not return phone calls or wait until the end of the day so you cannot call back. A terrible company who I would never use or recommend.”

– Ronald H. via BBB

“I’ve never been involved in an accident … [and made] car payments on time, [but] they canceled my insurance at least three to four times a year and billed me with a new date and with a higher amount than previous.”

– Savi C. via BBB

According to J.D. Power’s 2022 U.S. Auto Claims Satisfaction Survey℠, American Family Insurance has a better-than-average claims experience. It gets 874 points out of 1,000, which is just above the industry average of 873. After your claim is settled, you can expect your car insurance rates to rise during your next policy term if you were at fault. A small scratch might be worth repairing outside of your insurance coverage for this reason.

Costco Insurance Complaints

Every year, the NAIC collects and compiles auto insurance complaints. For 2022, American Family has a complaint index rating of .34, which means it has much less the amount of complaints than the industry average (set at 1.00). You can compare the index ratings of American Family Insurance to those below.

Ratings from the complaint index by the National Association of Insurance Commissioners for top recommended car insurance providers

Costco Car Insurance Mobile App

Costco doesn’t seem to have its own car insurance app, but customers can use the American Family insurance mobile app, which fares well on both the App Store and Google Play. The table below showcases what customers liked and didn’t like about the apps.


What Customers Like

Problems Customers Report

App Store

4.8 / 5.0

• Good customer service
• Easy claims process

• Dishonest and fraudulent practices
• Functionality issues

Google Play

4.2 / 5.0

• Handy
• Easy to use

• Functionality problems

Ratings From Our Customer Experience Survey

Our research team surveyed nearly 7,000 car insurance customers in 2022, with 132 people having car insurance through American Family. Across all categories, American Family got an overall score that was above the average industry rating, showing extreme customer satisfaction.

Aspect SurveyedAmerican Family Rating (Out of 5.0)Industry Average Rating (Out of 5.0)
Overall satisfaction4.54.2
Customer service4.44.0
Coverage selection4.33.9
Claims service4.54.2
Mobile app rating4.64.2

Costco Auto Insurance Reviews: Conclusion

In this review we went over everything there is to know about Costco car insurance. We rated its car insurance provider American Family 4.2 out of 5.0 stars, but you should still look at other providers before making a decision. Below are some of Costco’s top competitors for car insurance.

Costco Auto Insurance Competitors: Top Companies

The great thing about shopping for car insurance is that you can get as many free insurance quotes as you want. We recommend getting at least three, so you have a better idea of what kind of coverage and premiums are available to you.

We’ve also done some research on top providers for you. Any of the following companies would be great to check into since they’re all at the top of our auto insurance rankings. Plus, they all offer affordable rideshare coverage.

State Farm: Best Overall

We consider State Farm to be the best overall car insurance provider on the market and rate it 4.7 out of 5.0 stars. In addition to being well known for its competitive rates and fast claims payout process, State Farm offers several discounts. This includes the best good student discount in the country, which takes off 25 percent from premiums.

Read more: State Farm insurance review

USAA: Best For Military

USAA is the best choice overall if you’re in the military, a veteran, or are the spouse or child of a military member. USAA customers can find some of the cheapest rates in the industry. Plus, they have access to first-rate customer service and a number of discounts. In our review, USAA came in the second spot after State Farm with a rating of 4.6 out of 5.0 stars.

Read more: USAA insurance review

Geico: Best Discount Availability

Geico came in third place on our car insurance rankings. We think it’s the best option if you’re looking for a variety of discounts and great insurance rates. For that and its great customer service, we rate the company 4.6 out of 5.0 stars. 

Read more: Geico insurance review

Costco Insurance Reviews: FAQ