Costco Auto Insurance Reviews: Costs and Coverage (2022 Guide) – MarketWatch

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We at the Home Media reviews team wanted to see how Connect Insurance from Costco compares to the best car insurance companies. Our team carefully looked at Connect, which is offered through American Family Insurance, to find its costs, coverage and customer reviews. We found that Connect Insurance from Costco offers affordable rates and decent protection.
We rate Connect Insurance from Costco an 8.2 out of 10.0 for its affordable coverage options and added benefits. The score of “8.2” was aggregated from our in-depth review standards and methodology, which score car insurance providers on their costs, coverages, reputations, availability and customer experiences.
*Ratings are determined by our editorial review team. Learn more about our scoring methodology below.
Connect Insurance offers what those with Costco memberships have come to expect: competitive prices on quality products with few frills. The company doesn’t offer many add-on side products or additional coverages, but it has affordable rates.
Connect comes with the benefit of being backed by American Family, one of the country’s largest auto insurance companies. That means those affordable rates combine with the financial strength of a well-established provider. For current Costco members who want basic car coverage, Connect Insurance is certainly worth a look.
Below are some more specific pros and cons about Costco auto insurance:
Costco Wholesale doesn’t actually offer auto insurance directly, so its plans are administered by American Family. The company is one of the largest car insurers in the United States, and it holds a relatively strong reputation.
As with the retailer’s merchandise, Connect Insurance from Costco is available to members at a discounted rate. Costco members may find reduced prices for coverage that is similar to what American Family carries, though that’s not always the case.
It’s smart to compare your new car insurance rate with prices from multiple providers before making a final call. That’s because Connect Insurance from Costco isn’t always the cheapest option, despite the company’s reputation.
Customers can expect strong customer service and an overall painless claims process, as Connect Insurance is backed by one of the largest car insurance companies in the U.S. While its ratings may be average, Connect does hold good ratings from the Better Business Bureau (BBB) and J.D. Power consumer studies.
Connect Insurance from Costco holds an A+ rating and accreditation from the BBB. However, policyholders on the site give it an average of 1.2 out of 5.0 stars, though this is based on fewer than 100 reviews. Common issues include having coverage denied, getting policies canceled and struggling with the company’s claims process.
Additionally, the company’s high number of closed complaints on the BBB website — 41 in the last 12 months — doesn’t speak positively about its customer service standards.
Our team reached out to Connect Insurance from Costco for a comment on its negative customer reviews, but did not receive a response.
California drivers ranked Connect Insurance from Costco as the third-best provider in the Golden State in the J.D. Power 2022 U.S. Auto Insurance Study.
Like with American Family, drivers who choose Connect Insurance from Costco receive standard coverage and have a few additional options. The standard coverages offered by Connect include the following:
There are very few policy add-ons available through Connect Insurance from Costco. The choices that are available include the following:
Connect Insurance from Costco policies include a few perks that come standard for members. These include the benefits outlined below:
You’ll also receive stolen key coverage if comprehensive insurance is part of your policy. These Costco car insurance benefits are intended for members who carry applicable coverage.
American Family, commonly known as AmFam, uses the Connect brand name to sell insurance products in most states. Connect Insurance from Costco isn’t available in the following locations:
Get car insurance quotes from other providers to find the most cost-effective coverage policies, even if you live in a state where Connect Insurance from Costco is offered.
Costco is known for low prices on just about everything, and that’s no different when it comes to Connect Insurance. Our rate estimates for American Family, the insurance administrator, come out to an average of $1,537 per year or $128 per month for full coverage car insurance. That’s significantly below the average estimate across the nation, which is $1,730 annually.
Your rates will likely vary from the numbers given above. Also keep in mind that Costco members may find even lower rates with Connect Insurance than they would with American Family itself.
Connect Insurance from Costco offers several potential savings that can help members find cost-effective coverage. Below are the main car insurance discounts you could receive:Factors that affect car insurance rates Certain factors cause quotes for auto coverage rates to vary from person to person. We’ll look into the major elements that affect car insurance quotes for estimated premiums below.
If you’re a Costco member and live in a state where Connect Insurance is offered, it can be worth getting a quote. Its plans are administered by American Family, which is a company known for its affordability and customer service.
Even if Connect Insurance from Costco seems like the right provider for you, we advise getting car insurance quotes from multiple companies. That way, you can compare actual rates instead of just car insurance estimates. We recommend starting your search with Geico and Progressive.
In our study of the top insurance providers, Geico earned the award for Editor’s Choice. That’s because of the company’s affordable rates for drivers in various categories across the entire country.
Geico also offers a wide selection of coverage options and helpful add-ons, such as rideshare insurance and mechanical breakdown insurance (MBI). With a large number of discounts to choose from, most drivers can lower their rates from Geico even further.
Keep reading: Geico insurance review
Progressive offers plenty of coverage options and generally affordable rates for drivers in multiple categories. The Name Your Price® tool is a unique feature that allows motorists to start from their budget and work backward to find coverage that fits.
This provider shines brightest when covering those with less-than-stellar driving records. Progressive has long specialized in taking care of drivers with violations like speeding tickets, accidents and DUIs on their driving histories.
Keep reading: Progressive insurance reviews
Below are frequently asked questions about Costco car insurance:
American Family Insurance is the company that backs Connect Insurance from Costco. This means that all of Connect’s plans and offerings come from American Family.
Drivers can purchase standard car insurance options through Connect Insurance. Drivers can also purchase car rental insurance coverage and gap insurance.
A Costco Executive membership doesn’t cover roadside assistance on its own. However, members with this status get roadside assistance included when they purchase auto coverage through Connect Insurance from Costco.
All auto policies from Costco’s Connect Insurance include glass repair reimbursement. While this covers windshield repairs with no deductible, it doesn’t cover windshield replacement.
Connect Insurance includes $5,000 of coverage for identity fraud with all of its renters and homeowners insurance policies.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
*Data accurate at time of publication.
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