Costco auto insurance

Costco auto insurance quotes

The car insurance rates available to Costco members through American Family Connect are expensive. A minimum-coverage policy costs $1,080 per year, which is 25% more expensive than average.

Graph showing Costco car insurance rates versus competitors.

Find the Cheapest Car Insurance Quotes in Your Area

Rates for full-coverage car insurance are pricey, too. A full-coverage policy from American Family Connect costs $2,442 per year for Costco members — 19% more expensive than average.

Monthly Costco car insurance rates

Minimum coverage

Full coverage

The minimum coverage offered by AmFam Connect may be higher than the minimum required in your state. That means drivers in some states may have to purchase more coverage than the state minimum.

For example, drivers in California are only required to purchase $15,000 of bodily injury liability coverage per person and $30,000 per accident. However, the lowest limit available from American Family Connect is $25,000 per person and $50,000 per accident.

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Costco auto insurance benefits and discounts

Drivers purchasing insurance from Costco are eligible for a few special benefits exclusive to Costco members, in addition to discounted rates.

Executive Members get two additional perks:

free roadside assistance


and a guaranteed option to renew their policies. With this benefit, you’ll always have the option to renew your policy from American Family, regardless of how many accidents or traffic violations you’re involved in. Typically, insurers have the option not to renew your policy at the end of its term if you commit too many driving infractions. However, even with this perk, American Family may still raise your rates.

Two things to note:

  1. Costco Executive Members will not receive 2% of their car insurance premiums back as part of their annual 2% reward because policies are not purchased directly through Costco.
  2. Additionally, shoppers in Tennessee are not eligible for Costco’s auto rate discount, and only Executive Members qualify in Massachusetts.

American Family car insurance benefits and discounts

Drivers who purchase their auto insurance through Costco are also eligible for the benefits and discounts American Family offers to all of its drivers. One notable benefit is that American Family offers zero-deductible windshield repair, so you won’t have to pay out of pocket to have your windshield fixed. Another is accident travel expense coverage, covering your out-of-pocket costs for travel or accommodation if your car breaks down more than 100 miles from home.

Discounts available from American Family Connect include:

American Family provides several discounts for safe drivers. This includes discounts for three or more years of driving without causing an accident and for taking a defensive driving course.

If you purchase more than one insurance policy from American Family — for multiple vehicles or bundling your auto, home and life insurance together — you’ll get a reduced rate on every policy.

Cars equipped with modern safety and anti-theft features, such as air bags and alarms, will receive a discount.

Drivers will get a discount after three years’ worth of continuous coverage from American Family.

If you’re a full-time student under 25 years old with a “B” grade average or better, you’ll get a good student discount from American Family. The company will also reduce the rates for families with a student living more than 100 miles from home who doesn’t have a car.

Costco car insurance coverages

Car insurance from Costco and American Family provides all of the most common coverages that drivers need, including liability coverage for bodily injury and property damage, collision and comprehensive coverage, and medical payments or personal injury protection.

However, American Family Connect doesn’t offer a lot of flexibility when choosing your liability coverage limits, and drivers don’t have the option to waive medical payments coverage — the minimum amount available is $5,000.

In addition, American Family provides a few optional coverages drivers can purchase for extra protection:

Roadside assistance helps pay for repairs when you’re stuck on the side of the road, like when you have a dead battery, lock your keys in your car or get a flat tire. It covers up to $75 per incident, and it’s included at no extra cost if you have a Costco Executive Membership.

Gap insurance pays for the difference between what you owe on your lease or auto loan and the replacement cost of the car if it is totaled in an accident.

Rental car reimbursement pays for a rental car while your vehicle is being repaired after an accident. It covers up to $30 per day and $900 per incident.


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