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You’ve probably heard of Geico, but did you know you can insure your vehicle through Costco? In this review, we’ll compare Costco auto insurance vs. Geico to see where you can find the best coverage and price.

Geico topped the list in our research of the nation’s best car insurance companies, but Costco may provide better policies for certain drivers. Keep reading for a side-by-side comparison, or go ahead and get a few free quotes from top-rated providers by entering your zip code above. We always recommend getting at least three car insurance quotes so you can make sure you’re getting the best rates.


In this article:


Costco And Geico Highlights

Geico is the second-largest car insurance company in the country, with nearly 14 percent of the market share according to the National Association of Insurance Commissioners (NAIC). It has broad coverage, low rates, and high customer service ratings from experts.

Costco auto insurance is called Connect. American Family Insurance provides coverage for Connect, which is available to Costco members in several states. Costco also offers home insurance and life insurance to members, which you can bundle for savings.

Overall, we think Costco has strong coverage and customer service, but rates are a bit higher than you might pay with another provider, such as Geico.

  Costco Auto Insurance Geico
Motor1 Rating 3.5 4.5
Availability For Costco members,
available in 34 states
50 states
Coverage 3.5 4.0
Cost 3.0 4.0
Customer Service 3.5 4.0
AM Best Financial Strength Rating A A++
Mobile App Google Play Rating No app 4.8
 

Learn more about the providers in our complete Costco car insurance review and Geico auto insurance review.


Costco Auto Insurance Vs. Geico: Coverage

When you’re shopping for car insurance, the first thing you might consider is the level of coverage you need. You can get standard offerings like liability and collision insurance with Costco and Geico, but some of the more advanced types of auto insurance coverage vary.

Here's an overview of Costco Auto Insurance Vs. Geico in terms of coverage offerings:

  Costco Auto Insurance Geico
Bodily Injury Liability (BI)
Property Damage Liability (PD)
Collision
Comprehensive car insurance
Personal Injury Protection (PIP)
Medical Payments (MedPay)
Uninsured/Underinsured Motorist (UM/UIM)
Roadside Assistance
Rental Car Reimbursement
Accident Forgiveness Insurance  
Mechanical Breakdown Insurance (MBI)  
Rideshare Insurance  
Guaranteed Asset Protection (GAP) Insurance  
Accident Travel Expense Coverage  
 

Standout Coverage From Costco

  • Comprehensive benefit: Comprehensive coverage from Costco includes Stolen Key Coverage, which isn’t common for comprehensive car insurance policies. If your car keys are stolen, Costco will help you replace the keys and locks. Plus, if it’s less than $250, you won’t have to pay a deductible.
  • Accident travel expense coverage: If you’re in an accident more than 100 miles away from home and your car is not drivable, Costco will partially reimburse you for the cost of transportation.

Standout Coverage From Geico

  • Mechanical breakdown insurance: Mechanical breakdown insurance covers the cost of mechanical part repairs and replacements if your car breaks down.
  • Rideshare insurance: Drivers that work for Uber or Lyft will be covered when they are waiting to pick up passengers.

Costco Vs. Geico: Cost And Discounts

Our research found that Geico can be much more affordable than Costco auto insurance through American Family. That being said, your insurance premiums depend on many factors, including your vehicle make and model, your age, and your driving history.

You can also get lower car insurance rates if you qualify for discounts. Here are the discounts you could be eligible for with Costco auto insurance vs. Geico:

  Costco Auto Insurance Geico
Multiple Vehicle
Multiple Policy
Safe Driver
Vehicle Safety Features
Good Student
Defensive Driving
Anti-Theft
Military  
Emergency Deployment  
Anti-Lock Brakes  
Daytime Running Lights  
Passive Restraints  
New Car  
Federal Employee  
Garaging  
Student Away At School  
Education  
Customer Loyalty  
 

Be aware that Costco's good student discount is only available to students in California.

Standout Discounts From Costco

  • Garaging: If you park your car overnight in a garage, you could be eligible for savings.
  • Education: If you are a student or have a student on your policy who has completed at least four years of post-high-school education, you could get a discount.

Standout Discounts From Geico

  • New car: Drivers that insure a new vehicle can get a discount on auto insurance.
  • Affinity membership: Save money on your policy if you are in the military, a federal employee, or a member of one of the many professional and academic associations that Geico partners with.

To see how much you would pay for car insurance, enter your zip code below. You will be connected with auto insurance companies in your area.

 

Costco Vs. Geico: Ratings And Reviews

American Family and Geico are both highly rated by experts like the BBB and AM Best. The BBB measures business practices, while AM Best measures a company’s ability to pay out customer claims. As you can see, Geico scored slightly better in both categories.

  American Family Geico
BBB Rating A A+
AM Best Financial Strength Rating A A++
 

We found that Costco customers are satisfied by American Family's helpful claims representatives and friendly customer service team. Those that left negative reviews saw rates rise after their first at-fault accidents and saw rates rise on other occasions without explanation.

Positive Geico reviews focus on good claims experiences, helpful customer service, and easy-to-use technology. Negative comments mention rate increases after claims and the fact that Geico wouldn’t pay for original parts to be used in repairs.


Quotes And Claims

Let's look at the quotes and claims process satisfaction from customers. Geico earns high ratings from many experts – it had the highest score among large insurers in the J.D. Power 2020 U.S. Insurance Shopping StudySM. American Family ranks third among mid-size insurers in the same study. 

Geico similarly performed well in the J.D. Power 2020 U.S. Auto Claims Satisfaction StudySM, earning 871 out of a possible 1,000 points. American Family earned 862 points in the same study, which is not far behind. Both ratings show strong satisfaction in the insurance claims process from customers.


Our Take On Costco Auto Insurance Vs. Geico

Comparing Costco auto insurance vs. Geico, we found that Geico has more expansive coverage, lower-than-average rates, and strong reviews from experts and customers. However, if you live in a state where Costco auto insurance is available, it could be right for you. 

Overall, we think most customers would be most satisfied with Geico.

Coverage Geico
Cost and Discounts Geico
Quotes and Claims Processes Geico
Ratings and Customer Reviews Tie
Overall Geico
 

Enter your zip code below to start comparing top auto insurance providers for free so you can find the best coverage and price for you. 

 

Top Recommendations For Car Insurance

Any time you shop for coverage, it’s a good idea to get multiple quotes from providers in your area. While Costco and Geico are good options, we also recommend Progressive and USAA. Both car insurance companies scored well in our industry-wide review, with a 4.5-star rating and 5.0-star rating, respectively.


Progressive: Best For High-Risk Drivers

As one of the most well-known auto insurers nationwide, Progressive has proven to be a smart choice for most drivers. Thanks to generous discounts, the company is especially suited for high-risk drivers, including those in their 20s and those who have a DUI on record. This is in part because Progressive offers small accident forgiveness to all drivers and large accident forgiveness to drivers who remain claim-free for several years.

Progressive has great shopping features, too, like the Name Your Price® tool, which will match you with Progressive car insurance policies that fit your budget. There’s also a usage-based savings program called Snapshot® that can monitor safe driving habits.

Learn more in our comprehensive Progressive auto insurance review.


USAA: Best For Military

Our USAA auto insurance review named USAA the best choice for military personnel and their family members. USAA has top marks from industry experts like AM Best and has swept the board in many 2020 J.D. Power Studies.

The auto insurance company offers many competitive discounts, including a military installation discount of up to 15 percent if you garage your car on a military base. USAA also has a usage-based safe driving program called SafePilot® that monitors driving habits through an app to provide discounted rates on car insurance.


Frequently Asked Questions

Is Costco car insurance cheaper than Geico?

In our research, we found that Costco car insurance is not cheaper than Geico. In fact, Geico tends to be cheaper for most drivers overall. However, if you have a Costco membership and already have homeowners insurance through the club, you could save by bundling home and auto through Costco.

Is Costco car insurance any good?

Yes, Costco car insurance offers all the standard coverage options and extras of any mainstream insurance company. American Family Insurance backs Costco car insurance, which can come with extra perks like lifetime renewability and roadside assistance.

Who is the best auto insurance provider?

After comparing all leading car insurance companies across dozens of data points, we named Geico as Best Overall for its strong customer service, insurance discounts, and coverage. We also recognized USAA as Best for Military and State Farm as Best for Students.


Methodology

In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.

  • Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
  • Availability: We consider availability by state as well as exclusions for specific groups of drivers.
  • Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
  • Cost and Discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
  • Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
  • Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.

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