Is Auto Insurance Cheaper Through Costco?

Last Updated on October 7, 2026

By James Shaffer Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 5, 2026 How we fact-check

Sometimes, yes — but it’s not guaranteed.

Costco doesn’t sell or underwrite auto insurance directly. Eligible Costco members can quote and buy auto and home coverage through Costco’s insurance program, which is underwritten by American Family companies. The program was branded CONNECT until the end of 2025; that name is gone from both Costco’s page and the program’s own site now, except inside the legal entity names. So you’re shopping an American Family–backed policy with Costco member pricing layered on where it applies.

The underwriting companies the program names are American Family Connect Property and Casualty Insurance Company, American Family Connect Insurance Company, Midvale Indemnity Company, the Homesite entities, and Ranchers & Farmers Mutual Insurance Company for Texas property. Those are the names that will be on your policy, not Costco’s.

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 buy coverage through the Costco program, underwritten by American Family companies and branded CONNECT until the end of 2025.
  • 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.
  • The Executive Member perks are roadside assistance (up to $75 per occurrence, more in four states) and lifetime renewability, which is not offered in California, Maryland or Michigan.
  • Costco memberships run $65/year (Gold Star/Business) or $130/year (Executive) — the fees Costco set on September 1, 2024 — so factor the membership into your total savings.
Table Of Contents
  1. What Is Costco Auto Insurance?
  2. Is Auto Insurance Cheaper Through Costco?
  3. What Discounts and Perks Do Costco Members Get?
  4. How Much Does a Costco Membership Cost?
  5. Is American Family a Good Auto Insurance Company?
  6. What’s the “Catch” With Costco Auto Insurance?
  7. FAQs on Costco Auto Insurance
  8. Final Word: Should You Try Costco for Auto Insurance?
  9. Sources

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.

Costco used to offer insurance through Ameriprise. American Family completed the purchase of Ameriprise’s auto and home business on October 1, 2019, for $1.14 billion. The Costco program ran under the CONNECT brand after that, and CONNECT was retired as a consumer name at the end of 2025. Ameriprise itself no longer sells auto or home insurance at all.

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. The program says Costco members get a member discount on car and home insurance “in most states.” It names the gaps: no discount on home insurance in Florida or Tennessee, and no discount on car insurance for non-Executive Members in Massachusetts. Neither Costco nor American Family publishes how big the discount is.
  • 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. Neither Costco nor the program publishes a list of states where it sells, so the only way to know is to run a quote with your ZIP code. Individual benefits do carry published state exclusions, listed further down.

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

The program’s own wording is that Costco members receive “a Costco member discount on car and home insurance in most states.” No percentage is published anywhere, by either company, so treat it as something the quote will show you rather than a number you can plan around. The published carve-outs are home insurance in Florida and Tennessee, and car insurance for non-Executive Members in Massachusetts.

Alongside the member discount, the program lists the ordinary discounts you would expect: Premier Safety, Defensive Driver, Vehicle Safety Features, Garaging, Good Student, Student Away, Multi-vehicle, and a Good Driver discount in California only.

Executive Member benefits

The program’s benefits page lists roadside assistance, lifetime renewability and home lockout assistance under Costco Executive Members. Its landing page is looser, saying those benefits are “included with most policies.” The two pages disagree, so confirm which applies to you on the quote before you upgrade your membership for them.

Emergency Roadside Assistance: up to $75 per occurrence, and the program names the exceptions: $100 in Massachusetts, Montana and South Carolina, $80 in Texas, and no limit in North Carolina. It excludes the cost of the battery or the fluids themselves, so a jump start is covered and a new battery is not. If you’re not an Executive Member, roadside assistance is still available as a policy coverage — ask what it adds to the premium. For a deeper breakdown of what these programs usually do and don’t cover, see Costco roadside assistance.

Lifetime Renewability (Executive Members): this is marketed as protection against being dropped after an accident, and it has real limits. It is not offered in California, Maryland or Michigan, and the program excludes major violations and policy non-compliance from it. If you’re worried about cancellation or nonrenewal, also read: how many accidents before insurance drops you?

Two auto benefits the program includes for everyone

These two are on the program’s car insurance benefits page and are not tied to the Executive tier. A Glass Repair Deductible Waiver comes at no extra cost and waives your deductible on a windshield repair — a repair, not a replacement. Road Trip Accident Accommodation Coverage applies when an accident happens more than 100 miles from home and leaves the car undriveable, and covers travel and lodging costs.

Don’t confuse the windshield waiver with the program’s other glass benefit, which pays up to $1,000 toward replacement or repair. That one is on the home policy, not the auto policy, and it is Executive Members only and excluded in New York, Vermont and Washington.

How Much Does a Costco Membership Cost?

Membership cost is part of your all-in savings. Costco set these fees effective September 1, 2024 and has announced no change since:

  • 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 is sunk cost anyway. If you’re joining only for insurance, your premium savings need to clear $65 before you are ahead. And the Executive upgrade is a second $65: it buys the roadside and renewability perks plus a 2% reward on Costco purchases, capped at $1,250 a year, so work out whether your own shopping gets anywhere near that before you count the insurance perks as free.

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: A.M. Best affirmed American Family’s Financial Strength Rating at A (Excellent) with a stable outlook on September 24, 2025, and the affirmation names American Family Connect Property and Casualty Insurance Company — the company behind the Costco program — by name.
  • Customer experience: the Better Business Bureau rates the program’s entity A+ and lists it as accredited since July 29, 2021, with 165 complaints in the last three years and 32 closed in the last twelve months (read October 2026; BBB totals move). Satisfaction varies by region and product line, so read recent reviews too.
  • 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. Several benefits carry named state exclusions, and no one publishes where the program itself is sold, so your ZIP code decides.
  • 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 free. The Executive tier costs $65 a year more than a basic membership, and the roadside and lifetime-renewability benefits are what that buys on the insurance side.

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 already a Costco member, especially an Executive Member, it’s worth a quote. The underwriter is financially sound — A.M. Best affirmed American Family at A (Excellent) in September 2025 — and the member discount is real, even if nobody publishes its size.

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.

My advice is to run the Costco quote alongside two others at identical limits and deductibles, and to price the Executive upgrade separately rather than letting the insurance perks justify it. If you’re also shopping home or renters coverage, compare the bundle price at all three insurers rather than only this one.

Sources

Checked October 5, 2026