Is Auto Insurance Cheaper Through Costco?

Last Updated on February 5, 2026

Sometimes, yes — but it’s not guaranteed.

Costco doesn’t sell or underwrite auto insurance directly. Instead, eligible Costco members can quote and buy auto (and home) coverage through Costco’s insurance program, which is administered by an agency and underwritten by American Family companies (the program was historically branded as CONNECT). On Costco’s own insurance page, Costco notes that CONNECT has changed its name to American Family Insurance. That means you’re essentially shopping an American Family–backed policy, with Costco-member pricing/benefits layered in (where available).

So, is it cheaper through Costco? The only honest answer is: it depends. For some drivers, the Costco member discount and American Family pricing can beat their current insurer. For others, a different carrier may come in lower. Below is how the Costco program works, what “Executive Member benefits” actually include, and how to tell if Costco insurance is a deal for you.

• Costco doesn’t underwrite auto insurance — eligible members can buy coverage through the Costco program powered by American Family (formerly branded as CONNECT).
• Costco auto insurance can be cheaper, but pricing depends on your state, driver profile, vehicle, and coverage choices—so you still need to compare quotes.
• Executive Members may qualify for extra benefits like roadside assistance and “lifetime renewability,” but the fine print varies by state and policy.
• Costco memberships currently run $65/year (Gold Star/Business) or $130/year (Executive), so factor membership cost into your total savings.

What Is Costco Auto Insurance?

“Costco car insurance” is shorthand for auto insurance you buy through Costco’s insurance program. Policies are offered through American Family’s network (and related underwriting companies) and marketed to Costco members through Costco’s website and the program’s quote portal.

This setup is common: retailers and membership clubs partner with insurers to offer member discounts or bundled perks, while the insurance company (not the retailer) handles underwriting, claims, billing, and policy changes.

In the past, Costco offered insurance through Ameriprise. After American Family acquired Ameriprise’s auto and home insurance business, the Costco program continued under the CONNECT brand and is now presented under the American Family name.

Is Auto Insurance Cheaper Through Costco?

It can be cheaper, but you shouldn’t assume it will be. Here’s what actually drives the price:

• Member discount eligibility. Costco advertises an “exclusive member discount,” but discounts can be limited by state, underwriting rules, and policy type.
• Your driver profile. Your age, driving history, claims history, annual mileage, and (in many states) credit-based insurance score can swing quotes dramatically. If you have a spotty record, you may want to compare how different insurers treat risk (start here: car insurance quotes for drivers with bad driving records).
• Your coverage choices. Higher liability limits, comprehensive/collision, lower deductibles, and extra endorsements can raise the premium—no matter who sells the policy.
• State-by-state availability. The Costco program is widely available, but not universal, and benefits vary by state.

The best way to know: run the Costco/American Family quote, then compare it against at least 2–3 other reputable carriers with the same limits and deductibles. If you want a shortlist of strong competitors to benchmark against, see the 25 best auto insurance companies in America.

What Discounts and Perks Do Costco Members Get?

Costco highlights two main buckets of value: (1) member pricing/discounts and (2) extra benefits for Executive Members. In practice, the fine print matters because benefits can vary by state, underwriting company, and policy.

Costco member discount

Costco advertises an exclusive discount for members who switch. However, the discount is subject to eligibility and underwriting rules and isn’t available in every scenario (certain states and policy types have carve-outs).

Executive Member benefits

Executive Members may qualify for extra benefits on certain policies (availability varies by state and underwriting company). Two of the most talked-about perks are roadside assistance and “lifetime renewability.”

Emergency Roadside Assistance: On many policies, roadside assistance covers up to $75 per occurrence (higher limits apply in some states). It typically does not pay for the cost of the battery or fluids (like gas or oil) and doesn’t replace keys or locks. If you’re not an Executive Member, you may need to add towing/roadside coverage to be eligible. For a deeper breakdown of what these programs usually do (and don’t) cover, see Costco roadside assistance.

Lifetime Renewability (Executive Members): This benefit is marketed as protection against being dropped after an accident, but it comes with important limitations. It’s only available on select auto policies and is not available in some states (and it’s described as not being a contractual benefit). If you’re concerned about cancellation/nonrenewal, also read: how many accidents before insurance drops you?

How Much Does a Costco Membership Cost?

Membership cost matters, because it’s part of your “all-in” savings calculation. As of now, Costco’s posted annual membership fees are:

• Gold Star: $65 per year
• Gold Star Executive: $130 per year
• Business: $65 per year
• Business Executive: $130 per year

If you already shop at Costco, the membership cost may be “sunk” anyway. But if you’re joining only for insurance, make sure your premium savings exceed the membership fee (and remember that the Executive tier only pays off if you actually use its benefits).

Is American Family a Good Auto Insurance Company?

Because the Costco program is powered by American Family, it’s worth evaluating American Family the way you would any insurer:

• Financial strength: American Family carries strong financial strength ratings from major rating agencies, which is a good sign for claims-paying ability.
• Customer experience: Satisfaction varies by region and product line. Third-party studies can be helpful, but they don’t replace reading recent reviews and comparing real quotes.
• Pricing competitiveness: American Family can be very competitive in some states and demographics, but it’s not always the cheapest option.

If you want a full breakdown of coverages, pros/cons, and how American Family compares to other carriers, see our American Family auto insurance review.

What’s the “Catch” With Costco Auto Insurance?

There usually isn’t a dramatic “gotcha,” but there are a few practical tradeoffs:

• Not available everywhere. The program and certain benefits vary by state, and some coverages/discounts have state-specific restrictions.
• Discounts aren’t universal. Even if the Costco discount applies, another insurer may still beat the price after their own discounts.
• Executive perks aren’t always “free.” Some benefits require specific underwriting companies, policy types, or added endorsements if you’re not an Executive Member.

If your goal is the lowest premium, treat Costco/American Family as one strong quote — not the only quote. Compare it against other carriers and make sure you’re stacking every discount you qualify for (start here: best auto insurance discounts).

FAQs on Costco Auto Insurance

Final Word: Should You Try Costco for Auto Insurance?

If you’re a Costco member (especially an Executive Member), it’s usually worth getting a quote. The member discount and Executive perks can make the Costco/American Family program a very competitive option in many states.

But don’t buy on the brand name alone. Get the Costco quote, then compare it to a few other insurers. If Costco is cheapest (or close) and the coverage/claims experience looks solid, it can be a smart way to save.

Tip: If you’re also shopping home or renters coverage, bundling can sometimes unlock the biggest savings—especially when you compare the bundle price across multiple insurers.