How Costco Can Help You Save on Car Insurance

On its website, Costco emphasizes that, out of those who saved money when they switched to CONNECT, the average savings for Costco home and auto bundlers was $587.17 for the first year. The key words here are “out of those who saved.”

Most insurance providers use this phrasing to neglect customers who didn’t save money by switching auto insurance companies. Costco doesn’t reveal the average savings across all customers, so there’s no way to know for sure if you can save by switching to their policy unless you request a quote from them.

Costco Auto Insurance Discounts

That said, with CONNECT, you can potentially receive insurance discounts for the following.

• Costco membership: There’s a discount simply for being a Costco member. Make sure to give CONNECT your Costco membership number when you buy your policy to unlock savings. Note that this discount isn’t available to Gold Star members in Massachusetts — only Executive members.
• Good driver: In California only, you can get a discount for being a good driver.
• Premier Safety: Have no traffic violations, claims, or accidents on your record in the past four years? Get a discount for being such a safe driver.
• Defensive driving course: Whether you’re a newly minted teen driver or someone who simply needs a refresher, you can get a discount if you take a DMV-approved defensive driving course.
• Vehicle safety features: If your vehicle includes anti-theft devices, anti-lock brakes, airbags, or automatic seatbelts, you’ll see a reduction in your car insurance premiums.
• Garaging: In some areas, you can save money by parking your vehicle overnight in a garage.
• Good student discounts: Although Costco doesn’t list the exact GPA required, full-time students with good grades can get discounts on their premiums. This is a great deal for teen drivers with costly car insurance.
• Student away from home: A student who leaves their car at home and attends school more than 100 miles away can receive a discount.
• Multicar: With each car you add to your CONNECT policy, you’ll pay less to insure each individual vehicle.
• Bundling: Whether it’s bundling your home and auto insurance, your auto and umbrella insurance, or your auto, home, and umbrella insurance, CONNECT offers discounted rates.
• Tenure: CONNECT rewards loyalty when you reach “time-related milestones,” although it doesn’t specify what those are.¹

Now that we know the ways CONNECT can potentially save you money on car insurance, let’s talk about what their policies can cover.

Costco Car Insurance

• Roadside assistance: Your membership will reimburse you for any roadside assistance you need. However, it does not cover the cost of batteries or fluids such as oil, gas, and coolants.

Costco offers more than just car insurance for its members, both through CONNECT and through other providers. Other available policies include the following.

CONNECT

• ATV insurance
• Boat insurance
• Classic car insurance
• Flood damage insurance
• Motorcycle insurance
• Rental property insurance
• Renters insurance
• RV insurance
• Umbrella insurance

Other Providers

• Business health insurance (CBC)
• Term life insurance (Protective)
• Pet insurance (FIGO)

While we only have Costco and CONNECT’s data to rely on, which undeniably does not tell the whole story, customers tend to like CONNECT. Nearly 90 percent of its Costco customers renewed their policies, while 89 percent were satisfied with the service². It’s certainly a positive that most American Family CONNECT customers appreciated the customer service behind the products and services.

Looking beyond self-reported data, American Family, the company behind CONNECT, has great third-party ratings with J.D. Power and the Better Business Bureau (BBB). According to the J.D. Power 2021 U.S. Insurance Shopping Study, American Family, commonly known as AmFam, is the highest-ranking midsize insurer, with a customer satisfaction rating of 899 out of 1,000 (the average is 858)³. American Family is not accredited with the BBB, but it has an A rating and provides customers with 68 years of experience⁴.

If you’re not already a Costco member, you should take the membership fees into account when  considering whether or not to use CONNECT as your auto insurer.