Costco Car Insurance Review

Costco Auto Insurance Introduction

Costco is a membership club that sells products and services in its warehouses and online. Members get special deals, prices, and benefits through Costco's partnerships. One of these benefits is Costco car insurance through CONNECT, a division of American Family Insurance. CONNECT used to be called Ameriprise Auto and Home.

Pros and Cons

PROS	CONS
Accident forgiveness discount for Costco members.	No rideshare insurance
New Car Replacement	No pay-per-mile or usage-based insurance
Variety of Discounts	No option for a decreasing deductible

Costco Auto Insurance Coverages

Go through the following and understand your car insurance choices available from Costco auto insurance:

Medical Coverage

Medical coverage includes Medical Expense Insurance, which pays for all necessary medical costs after an accident, no matter who was at fault. In case of an accident, your policy covers the driver, their spouse, relatives who live in the same house, and anyone else in the car.

You can lower your annual premiums by raising the amount you have to pay out of pocket before your insurance kicks in.

Costco car insurance also gives you the option of getting the following coverages for your car:

• Accident Travel Expense Coverage: If you get in an accident more than 100 miles from home and your car can't be driven, this coverage helps pay for your travel or lodging costs that you have to pay out of pocket.
• Gap insurance: Also called "guaranteed auto protection" insurance, it pays the difference between how much your car is worth and how much you owe on your loan if you lose it. This coverage goes up to 120% of the value of your car. It covers replacing a new car for the first year and the gap for the next two years.
• Glass Repair Deductible Waiver: This free coverage comes with all auto insurance policies. It pays for repairs to your windshield without you having to pay a deductible. But the cost of replacing a windshield needs to be covered.
• New Car Replacement Coverage: If your car is a total loss within the first year of ownership (or the first 15,000 miles), you can replace it with the same make and model for up to 110% of the MSRP.
• Rental car insurance: If you have an accident and need to rent a car because of it, this will pay for the daily rental fees. The most money you can be covered for is the amount you choose.
• Roadside Assistance and Towing: This covers the cost of having your car towed to a repair shop and any work that needs to be done on the spot where it broke down. This work includes fixing a flat tire, replacing a dead battery, and getting your car out of the snow when it's stuck.

• Stolen Key Coverage: People with comprehensive insurance get stolen key coverage for no extra charge. This benefit will change the locks if your car key is stolen. If the cost is less than $250, you don't have to pay anything.

Things that affect your insurance rates

Many things affect how much insurance costs, and not all companies handle them the same way.

• Age: Older drivers are less likely to get into accidents, so they pay less for car insurance. Teenagers and drivers under the age of 25 usually pay more.
• Gender: Women have fewer accidents and DUIs than men, and the accidents they do have aren't as bad, so their insurance rates are lower.
• Car Use: Your rates are based on how many miles you drive and how you use your car (for fun, to get to work, etc.). If you drive a lot, you're more likely to get into an accident. So occasional drivers pay the least.
• Location: People who live in cities pay more than those who live in suburbs or rural areas because there are more chances of accidents, break-ins, and other damage in cities.
• Car details: The price of your car is a big part of how much your insurance costs. Rates are also based on how likely it is to be stolen, how much it costs to fix, how big the engine is, and how safe the car is overall.

Costco Auto Insurance Rates

Costco provides affordable car insurance quotes for car owners belonging to different profiles. There are a couple of factors that govern the Costco car insurance rates which include the coverage you choose and is affordable as well. The annual minimum coverage rate of Costco is $1,074.

Costco Auto Insurance Discounts

Customers of Costco auto insurance can use these discounts to find low-cost car insurance deals.

Types of Equipment

• Airbags: Airbags protect the driver and other people in the car in the event of an accident.
• Automatic Seat Belts: Automatic seat belts turn on by themselves to make sure people are wearing them when the car is moving.
• Anti-Theft Devices: Vehicle alarms, tracking devices, and other anti-theft devices keep the car safe and make it less likely that thieves will steal it.
• Garage Discount: If you park your car in a garage, you may get a discount because it is safer when you aren't using it.
• Good Driver Discount: If you are a safe driver, your premiums may go down. Only people in California can get this discount. This option let you explore plans that suit your driving habits.
• Premier Safety Discount: You'll get a discount on your insurance if all of your insured drivers have been good drivers for the past four years.

Driver Education

• Defensive Driver Discount: You can get a discount on your policy if you take a refresher driving course from your state's Department of Motor Vehicles (DMV) or an approved organization.
• Education Discount: Students who go to college for at least four years may be able to get a discount.
• Good Student Discount: Full-time students can get a discount if they do well in school and keep up their grades.
• Student Away Discount: Students who live more than 100 miles from home and go to school more than 100 miles away may get a discount if they only drive a car sometimes. This discount is not valid if a student has a car at school.

Loyalty of Customers

• Auto and Home Bundle: Customers who buy their home or condo insurance from Costco and their car insurance from the same company will save money.
• Auto and Umbrella Bundle: You'll get a discount if you buy an umbrella policy simultaneously with your car insurance.
• Auto, Home, and Umbrella: If you buy all three types of insurance from Costco auto insurance, you'll get an even bigger discount.
• Multiple Vehicle Discount: You might get a discount if you insure more than one car under the same policy.
• Tenure Discount: Customers will pay less for their policies when they reach certain time milestones.

Costco Customer Satisfaction

Costco Wholesale doesn't sell auto insurance directly, so American Family is in charge of its plans. The company is one of the biggest car insurance companies in the U.S. and has a pretty good name.

Connect Insurance from Costco is available to members at a lower price, just like the store's other goods. In addition, members of Costco may find lower prices for coverage similar to what American Family offers, but this is only sometimes the case.

Before making a final decision, it's smart to compare your new car insurance rate with prices from multiple companies. For example, even though the company has a good name, Connect Insurance from Costco is only sometimes the cheapest option.

Way.com Summary

Members of Costco can buy car insurance from Connect by American Family and get a discount for being a member. Connect offers a wide range of discounts on car insurance, but the number of customer complaints is slightly higher than average. So Costco car insurance might be worth looking into if you are a Costco member who cares more about having a wide range of coverage than getting a discount for driving less.

Refrain from assuming that being a Costco member will get you the best rates on car insurance. Instead, get personalized quotes instantly from more than one company before deciding.

About Costco Car Insurance

Connect from American Family is the company that gives Costco car insurance. Connect gives Costco members special discounts, but you don't have to be a Costco member to buy a policy through Connect.

Costco car insurance gives you options for standard coverage and add-ons that you can add to your policy. The Costco website says that more than 400,000 members have switched to Connect for their auto insurance.

Costco offers car insurance in 44 states and Washington, D.C., but some coverages and discounts are available in some states.

Contact Details

A Brief History of Costco

In 1927, American Family Insurance was started in Madison, Wisconsin. Since then, it has grown into a Fortune 500 company with assets worth $34 billion and customer equity worth $10.6 billion. It has been giving members Costco auto insurance for almost 20 years. American Family Insurance has a lot of different types of policies, such as auto, home, business, and life insurance.