Costco Auto Insurance Review 2023

If you’re browsing through Costco auto insurance reviews, this read will give you a well-rounded overview. We gathered all the useful information!

If you’re browsing through Costco auto insurance reviews, this read will give you a well-rounded overview.

About the Company 

Costco auto insurance is a part of the discount offers from Costco Services, which also provides life insurance, travel insurance, and vision insurance. 

The policies of the company are underwritten by American Family Insurance under their brand name CONNECT. It is important to note that American Family Insurance acquired Ameriprise Auto&Home Insurance in 2019 that previously handled Costco’s policies.

How we Reviewed

In our Costco car insurance review we included the following aspects: 

• Types of insurance covered 
• Where this insurance is available 
• Insurance offers or extras
• Customer satisfaction and reviews
• Customer support
• Ease of use
• Pricing review
• Comparison with competitors
• Claims handling

Where Is It Available?

Located in De Pere, Wisconsin, Costco auto insurance is available in limited states. It is not available in Tennessee and to non-executive members in Massachusetts. 

Types of Insurance Covered and Missing Coverage

Costco auto insurance offers a variety of coverage options from standard to unique ones. 

Apart from Costco tire roadside assistance and Costco towing service, they offer basic liability coverage that insures the driver according to the state’s minimum requirements against property damage and bodily injuries. 

The coverage types  include: 

• Collision and Comprehensive Coverage

It covers the damages to the vehicle from events like natural disasters and vandalism.

• Gap Insurance 

If your car gets totaled, this insurance will pay the difference between the car’s value and the amount that you owe on the new vehicle loan.

• PIP

Also known as Personal Injury Protection coverage, it covers lost wages and services such as childcare. 

• Uninsured Motorist Coverage

It protects your financial stability in case you have a collision with an uninsured driver. Although you can sue them, your coverage will provide you with the compensation that you need to cope with the medical and property damage expenses which the uninsured driver can’t offer.

• Rental Reimbursement

Rental car reimbursement comes in handy when you get in an accident and can’t use your automobile. This coverage helps pay for a rental car while your automobile is being repaired after a collision.

The coverage options that are missing are pet coverage and new car replacement options.

Costco Auto Insurance Pricing

Here is a Costco pricing review compiled for you in a small table:

Insurer profile	Cost of Costco car insurance
25-year-old male	$1,404
25-year-old female	$1,215
35-year-old married couple with 2 household vehicles	$690

Costco Auto Insurance Discount Offers 

Drivers who buy Costco auto insurance are eligible for the amazing benefits American Family offers.  

Some of the Costco benefits that you can take advantage of are:

• Good Driver Discount 

Available only for drivers in California, this discount helps you drive safely while earning points to lower your insurance premiums. Simply stated, by driving safely you get to enjoy big savings on your premium.

• Premier Safety Discount   

This reward is offered to those policyholders that have spotless records. It means that drivers that don’t have any traffic violations or claims in the last four years get to enjoy premier safety discounts.

• Defensive Driver Discount

This is an extra incentive that Costco auto insurance offers to drivers that choose to take a refresher driving course.  

• Vehicle Safety

You can get additional discounts if your car includes safety features such as anti-lock brakes, airbags, anti-theft devices, and automatic seatbelts.

• Good Student Discount

As young drivers face greater odds of being in an accident, they pay higher rates on insurance. 

On the contrary, at Costco, they get big discounts for good grades and hard work. 

• Student Away Discount 

You may be eligible for this discount if you’re a student going away to school more than 100 miles away from home.  

• Glass Deductible Waiver

If your windshield can be repaired instead of replaced, Costco car insurance will cover your glass deductible.

Is Costco Car Insurance a Good Deal? 

When it comes to customer satisfaction, it is quite clear that the company has mixed reviews. Some people like their services while others don’t.  

Although Costco insurance BBB rating is an A+, the ratings given by customers are not impressive. They give the company only 1 star.  

The company scored exceptionally well in a JD Power 2018 auto insurance survey, where it got 5 power circles in the state of California.        

However, that’s the only state where the company is rated so high. 

In terms of financial strength, Costco insurance AM Best rating is an A, which shows that the company is financially stable and can reimburse claims promptly. 

If the company improves its customer service, it can indeed beat the competition and get ahead of their game.

Here’s the customer rating and financial strength of Costco auto insurance on some trusted platforms:

Platform	Rating
AM Best	A rating
BBB	A+ rating
NAIC	1.79 (above average complaints)

Costco Customer Service

For claim assistance, Costco has a team at your disposal 24/7. 

For in-detail information, contact Costco insurance agency via phone, email, or fax.  You can reach them in the time frame stated below: 

Monday – Friday: 5 a.m. to 8 p.m.

Saturday: 6:30 a.m. to 5 p.m.

Ease of Use and Policy Customization

Their official website is user-friendly and helpful.  It features all the information to confidently select a policy and get a Costco car insurance quote. 

Moreover, for user assistance, they also feature a learning center on their website. This section clarifies all aspects of insurance and how to navigate the ins and outs of your coverage. 

The FAQ page on their website is also useful for finding answers to common questions.

Costco Auto Insurance Claims Handling

Costco auto insurance gives you two options to file a claim. 

You can contact them on the Costco insurance phone number provided on their website.

You can also file your claim online. Please note that Costco auto insurance is underwritten by Ameriprise Insurance. Therefore, to file a claim dial Ameriprise Costco insurance claims phone number. You can report your claim 24/7.  

The Costco Insurance claiming process is fast and efficient.

It is advisable to report an auto claim with injury via call and auto claim with no injury online. 

When you call Ameriprise Costco auto insurance for an auto claim with injury, make sure to provide them the following details for a faster claim processing:

• Your policy number
• Vehicle information
• Accident details
• Police report (if applicable)
• The name/insurance information for the other party involved

Comparison With Competitors

Here is a comparison between Costco auto insurance and some of its competitors:

• Costco Insurance vs. State Farm

When compared with State Farm, Costco car insurance rates may be a better option if you want low premiums. 

But, if you’re looking for good customer service, claiming process, ridesharing coverage, rental experience, and impressive auto insurance discount, State Farm is definitely the right choice.

Also, in comparison to Costco insurance, State Farm is one of the largest insurance providers in the United States and offers services in all states. 

• Costco Insurance vs. Allstate

Allstate offers the greatest number of discounts so if you’re looking to save big on your auto insurance, then Allstate fits your needs. 

With Allstate you can benefit from the following offers:

• Good student insurance discount 
• Elderly drivers 
• Bundle discount
• ‘Green’ vehicles
• Good driver discount 

 

Although Costco rates are cheaper, Allstate takes the lead in customer service, buying, and claim process. 

• Costco Auto Insurance vs. GEICO

Both companies offer equally cheap rates, however, if you’re more of a tech-savvy person, then GEICO is a better choice. 

GEICO offers more tech options like apps that monitor car maintenance and provide virtual assistance. 

If you like simplicity and you don’t want to go into anything technical, then Costco may be a better option.  

Also, in terms of financial strength, GEICO is stronger and is more stable than Costco. GEICO has an A+ rating with AM Best while Costco has an A rating.