Yes, you can get car insurance through Costco. It's offered via a partnership with American Family Insurance and its subsidiary, Connect (by American Family Insurance). This program is exclusively for Costco members and is often marketed for its potential to offer competitive rates, especially for those with strong driving records. However, availability, pricing, and the specific insurer (American Family or Connect) can vary significantly by state.
The program works by leveraging Costco's bulk purchasing power to negotiate rates for its members. When you request a quote, you're dealing directly with the insurance company, not Costco itself. The coverage options are standard, including liability, comprehensive, and collision coverage. A key benefit is that Costco Executive Members may receive additional discounts on top of the standard member rate.
It's crucial to understand that your experience will depend heavily on your location. In some states, the program is underwritten by American Family Insurance, a larger, more established provider. In others, it's handled by Connect, which may have different service levels and claim handling processes. Always get quotes from multiple providers to ensure you're getting the best deal.
| Driver Profile | Sample Annual Premium (Costco Connect) | Sample Annual Premium (National Average) | Potential Savings |
|---|
| Single Driver, Clean Record | $1,200 | $1,450 | ~17% |
| Married Couple, 2 Cars | $2,100 | $2,600 | ~19% |
| Teen Driver Added | $3,500 | $4,400 | ~20% |
| Driver with 1 Recent Claim | $1,800 | $2,200 | ~18% |
The main drawback is that it's not available in every state, including Massachusetts, Michigan, and Rhode Island. Furthermore, drivers with less-than-perfect records might not find the most competitive rates here compared to insurers specializing in high-risk coverage. The best approach is to use it as one of several quotes you gather during your annual insurance review.
