Costco Insurance Review: Auto and Home

Costco Insurance Review: Auto and Home

Expensive rates and poor customer service mean Costco members will likely find better coverage elsewhere.

Editor's Rating

Costco sells auto and homeowners insurance to its club members through American Family (AmFam) under the brand name Connect.

Members who purchase insurance through Costco may be eligible for a discount on insurance rates, along with perks like free roadside assistance. However, homeowners may find the AmFam Connect claims process to be difficult.

ValuePenguin rates every insurance company by factoring in prices, customer service, extra coverage options and any other unique value. Key metrics for each of those are combined using a unique formula to produce a rating out of five stars to show you the best insurers in the country.

Full methodology

Good for
  • Drivers with recent accidents worried about policy cancellation
  • Costco Executive Members
Bad for
  • Cheap rates
  • Customer service
  • Working with an agent

Costco insurance: Our thoughts

Bottom line: AmFam Connect is a poor choice for most Costco members. Auto and home insurance rates from Costco are more expensive than average. American Family offers Costco members free, useful coverage perks. However, the company receives a lot of complaints about its claims process, which means it may take a while to repair damage.

Costco's auto and home insurance policies are underwritten by American Family Connect, a subsidiary of American Family Insurance (AmFam), which is one of the 10 largest insurers in the country.

All Costco members can expect to get a discount on American Family Connect's auto and home insurance rates, as well as specific benefits for auto insurance based on their Costco membership tier.

Those with Costco's homeowners insurance can take advantage of glass repair reimbursement and home lockout assistance.

Despite its size, the company has a limited number of agents, with 2,000 team members across the country. In comparison, State Farm, the largest insurance company, employs 19,000 agents nationwide. AmFam might not be the best company for homeowners who want access to an in-person agent.

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

Currently insured?

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.

Minimum coverage
Full coverage
State Farm$80$187
Costco (AmFam)$90$204

Monthly rates are shown in the table.

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:

Safe driving

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.

Safety feature

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 and towing

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

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

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.

Costco homeowners insurance

Costco home insurance quotes

Costco home insurance quotes are more expensive than quotes from many of its competitors. The average annual rate is $999, which is 6% more expensive than average.

Graph showing Costco home insurance rates versus competitors.

Find Cheap Homeowners Insurance Quotes in Your Area

Currently insured?

Although coverage is more expensive than average, American Family Connect offers a number of optional coverages that may make it a good fit for some homeowners.

Average monthly cost
Average annual cost
Costco (AmFam)$83$999
State Farm$84$1,004

Costco homeowners insurance benefits and discounts

Costco members receive a number of added benefits from American Family, including:

  • Identity theft protection
  • Check fraud and stolen credit card protection
  • Lock replacement expense protection
  • Food spoilage protection
  • Wildfire loss prevention available in some states

These benefits don't cost extra for Costco members, and claims are not subject to a deductible.

Executive Members also receive glass repair reimbursement, which covers the cost of broken windows up to $1,000 per year, and home lockout assistance at no additional cost.

American Family home insurance discounts

Along with the Costco membership discount, American Family offers homeowners a handful of ways to lower their premium.

Age of home

Automatically added based on the age of your home


Homeowners who have not filed a claim in five years receive a discount

Protective devices

Install smoke alarms, dead bolt alarms, security alarms, sprinkler systems, monitored fire or security systems or fire extinguishers


Replace your roof, heating and cooling system (HVAC), electrical or plumbing system


Bundle your home and auto policies


Automatically added based on the number of years you've been insured with American Family

Availability of discounts depends on the state in which you live.

Costco home insurance coverages

Costco and American Family Connect provide all of the standard coverage options that you would expect from a home insurance policy, including:

American Family also has less-common optional coverages that can be added to your base policy.

  • Water backup and sump pump overflow coverage protects your home and belongings from damage due to sewer backup or sump pump failure.
  • Home media equipment coverage expands the electronics coverage included in your basic homeowners policy by $2,500, $5,000 or $10,000 increments to help protect expensive equipment like TVs, cellphones, cameras and home theater systems.
  • Adventure equipment coverage protects bicycles, fishing equipment, golf clubs and skis without needing to appraise or itemize individual items. With this coverage, your equipment is protected against all perils and is not subject to a deductible, and you'll receive replacement cost for any damage.

Costco insurance reviews and ratings

Costco insurer ratings

  • NAIC complaint index : 2.49
  • AM Best financial strength rating : A (excellent)

All of the interaction you'll have with your Costco auto insurance will be between you and American Family Connect, from buying your policy to making a claim. So American Family's customer service is what will impact your overall experience the most, not Costco's.

Unfortunately, AmFam Connect has poor reviews when it comes to its customer service. It has an NAIC complaint index of 2.49, meaning it receives more than twice as many complaints as a typical insurer of its size. The most common complaints from policyholders relate to the amount American Family paid out after an insurance claim and how long it took for the company to pay out the claim.

That means it may take AmFam Connect policyholders longer to repair damage and get back to normal after a loss.

On the other hand, American Family Connect is highly rated with regards to its financial strength, having received an A or "excellent" rating from AM Best. Shoppers shouldn't worry about the longevity of American Family when selecting it as an insurer.

Frequently asked questions

Does Costco sell auto and home insurance?

Yes. Costco sells auto and home insurance policies managed by Connect, which is owned by American Family Insurance. The company acquired Ameriprise Auto and Home Insurance — which previously handled Costco policies — in 2019.

Is Costco insurance cheap?

For both home and auto insurance, Costco is more expensive than its competitors. Costco's auto insurance rates are the most expensive we found, at $90 per month for minimum coverage and $204 per month for full coverage.

Should I buy Costco insurance?

Costco's home and auto insurance policies come with lots of coverage options, but its rates are more expensive than average. In addition, we aren't impressed by the customer service ratings we've seen for American Family Connect, which is the company that manages the policies.


To evaluate the quality of Costco's insurance offerings, we considered cost, coverage options and customer service.

To compare auto insurance quotes, we collected rates from nine of the largest cities across California for a 30-year-old man with an average credit score and a clean driving record who owns a 2015 Honda Civic EX.

Quotes are based on a policy with the following limits:

Minimum coverage
Full coverage
Bodily injury liability$25,000/$50,000$50,000/$100,000
Property damage liability$25,000$50,000
Uninsured/underinsured motorist bodily injuryWaived$50,000/$100,000
Medical payments$5,000$5,000
Comprehensive and collisionWaived$500 deductible

To compare home insurance quotes, we collected rates from nine of the largest cities across California for a 30-year-old man living alone with an average credit score and no history of claims.

Quotes are based on the following limits:

Dwelling coverage$340,600
Personal liability$100,000
Medical payments$5,000

*Dwelling coverage is the average across all properties.

Our customer service evaluations are in part based on ratings from the National Association of Insurance Commissioners (NAIC), AM Best and J.D. Power.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.