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Costco Car Insurance: How It Works and Whether It’s Worth It

Costco members can get auto insurance quotes through American Family, but savings and benefits vary. Here’s how to compare coverage, claims terms, and reviews.
From TheFinanceBase Team4 min to read
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Costco car insurance is coverage marketed to members through American Family Insurance, not a policy underwritten or claims-paid by Costco. It may be worth getting a quote if you’re eligible, but membership alone does not guarantee a lower price. Compare the quote with other policies that have the same drivers, vehicles, limits, deductibles, and add-ons before deciding.

How Costco car insurance works

Costco directs members seeking auto insurance to American Family Insurance. Depending on the policy, the underwriting company may be American Family Connect Property and Casualty Insurance Company, American Family Connect Insurance Company, or Midvale Indemnity Company. Costco says it does not underwrite insurance or pay claims. Check the underwriting company and policy terms on your own quote and policy documents, since they determine the contract that applies. Costco’s insurance page and American Family’s Costco member page describe the offer.

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Members may qualify for a Costco member discount in most states, but eligibility depends on state and individual circumstances. American Family says a member number is provided when a policy is purchased. Product availability, prices, and benefits can change and vary by state, so confirm what applies to your address and quote.

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What coverage and member benefits may be available

Costco describes customizable coverage, add-ons, and online access to policy documents and insurance ID cards. Available coverages and their application depend on the policy you select and the facts of a loss; the insurer’s coverage FAQ directs customers to the actual policy for governing terms.

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Potential discounts and Executive Member benefits

American Family lists possible discounts for safe driving, defensive-driving courses, vehicle safety features, garage parking, students, and multiple vehicles. For eligible Costco Executive Members, it also lists roadside assistance and lifetime renewability as possible benefits. Limitations, exclusions, state rules, underwriting company, and qualification requirements apply; none should be assumed until confirmed in the quote and policy. See American Family’s member-benefit details.

Optional rental coverage

Rental coverage is an optional add-on. If selected, it may help pay for a rental during a reasonable repair or replacement period, subject to the policy’s terms. Check the coverage limits and conditions rather than assuming a rental will be covered for every claim.

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How claims and service work

American Family says claims can be reported online or by phone 24 hours a day, 365 days a year. Its auto claim FAQ says a claims representative will contact a claimant within one business day after a car claim is filed. These are descriptions of the insurer’s process, not guarantees about a claim outcome or independent evidence of service quality. The policy and the circumstances of the loss govern coverage. Details are on American Family’s claims page and auto claims FAQ.

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What reviews say about Costco’s AmFam insurance

Recent Reddit discussions include mixed personal accounts. Some commenters say their premium was lower than with a previous insurer, or describe helpful service and smooth claims. Others say the quote was more expensive, premiums increased, or a claim was frustrating. These are self-selected anecdotes, not a representative survey; they cannot establish what most policyholders experience or predict how your quote or claim will turn out. See the discussions at “Has anyone had any claims with Costco’s AmFam insurance?” and “Does anyone have Car Insurance through Costco?”.

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Is Costco car insurance worth using?

It can be worth requesting a quote if the product is available where you live and you meet its eligibility rules, particularly if a member benefit applies to you. It is not possible to say it will be the cheapest option for every driver. Kiplinger’s July 21, 2026 article likewise advises shopping around and reports that partner auto coverage was unavailable in Alaska, Maine, North Dakota, Rhode Island, West Virginia, and Wyoming at the time of publication. Availability can change, so check by ZIP code rather than treating that list as permanent. Kiplinger’s assessment is a dated snapshot, not a substitute for confirming current eligibility.

Compare equivalent quotes

Request quotes using the same drivers, vehicles, liability limits, deductibles, and optional coverages. Compare the actual premium over the same policy period, plus fees and any eligibility conditions. A lower price is meaningful only if the protection and terms are comparable.

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  • 【HIGH QUALITY】: made of premium PU leather and durable vinyl PVC, strong and firm enough for your long-term use.
  • 【SAFE PROTECTION】: this registration and insurance card holder keeps your document free from tearing, bending or being ruined by moisture.
  • 【TIME SAVER】: clear inner pouches design helps you identify the correct document quickly with one glance.
  • 【WIDE RANGE OF USES】: can store your bills, insurance cards, vehicle registration and other essential paperwork.
  • 【SPECIAL GIFT】: beautiful sleek and trim design. This car document holder is a good gift for yourself, your lover, friends and family.
  • Confirm the underwriting company and the state-specific availability.
  • Compare bodily injury and property-damage liability limits, plus collision and comprehensive deductibles.
  • Check rental, roadside, and glass coverage terms, including whether each is optional.
  • Verify whether a Costco member discount or Executive Member benefit applies to you, and what conditions or exclusions accompany it.
  • Review renewal and cancellation terms as well as how to contact claims support.

Costco’s member page says “More than 500,000 Costco members have switched their auto insurance coverage to CONNECT,” but the page does not clearly date that figure. It is not a current 2026 adoption count or a customer-satisfaction measure, so it should not determine whether the policy is right for you. Costco’s page.

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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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