Costco Car Insurance Review 2026: Are Member Savings Worth It?

How Costco Car Insurance Actually Works

Despite the warehouse branding, Costco does not underwrite its own policies. Instead, the retailer partners with American Family Insurance to offer discounted auto coverage to members. The product was previously branded "CONNECT, powered by American Family Insurance," and at the end of 2025 it began operating under the American Family name, though the underwriting companies (American Family Connect Property and Casualty Insurance Company and American Family Connect Insurance Company) remain the same.

You can still access the program through a Costco-specific portal at costco.amfam.com. When you provide your membership number at quote time, the system applies the Costco member discount on top of any other discounts you qualify for. Claims are handled directly by American Family 24/7, online or by phone.

Eligibility: Gold Star vs Executive Members

There are two main Costco membership tiers, and both can access the program, but they get very different benefits.

One important catch: in Massachusetts, the Costco member discount is only available to Executive Members, not Gold Star members. The program is also subject to underwriting in every state, so the discount is not automatic.

Exclusive Benefits for Costco Members

The headline reason members consider this program is the Executive Member benefits, which are unusual in the broader auto insurance market.

Lifetime Renewability

As long as you keep your Executive membership active, American Family will renew your policy for life. This is meaningful because most insurers can non-renew you after a serious at-fault accident. Note that lifetime renewability is not available in California, Maryland, or Michigan, or on certain Florida policies, and it can still be lost for major violations, non-payment, or moving to a non-service state.

Complimentary Roadside Assistance

Executive Members get 24-hour roadside assistance included with most policies. It covers up to $75 per occurrence (higher in MA, MT, SC, and TX, and unlimited in NC) for towing, flat tires, jump-starts, lockouts, and fuel delivery. Non-Executive Members must add towing coverage to qualify. If you currently pay separately for roadside through AAA or a similar club, that alone can offset part of the Executive upgrade.

Glass Repair Deductible Waiver

Costco's program includes a $0 deductible for repairable windshield damage, which functions as a small but real deductible reduction perk that many mainstream carriers charge extra for.

New Car Replacement and Gap Coverage

New car replacement and gap coverage are available as optional add-ons depending on the state and policy. They are not always automatic perks of being a Costco member the way the Liberty Mutual or Travelers versions are, so confirm availability in your quote.

Available Coverages and Discounts

The program offers the standard menu you would expect from any major carrier, plus a few extras worth knowing about.

On top of the Costco member discount, you can stack savings such as multi-car, multi-product bundling, defensive driving course completion, good student, student away at school, safety features, Premier Safety (for households with no violations or claims in four years), and a garaging discount in some areas. Accident forgiveness kicks in after about three years of clean driving.

For drivers shopping every angle, it is worth reading our broader guide on how to save on car insurance and our breakdown of bundling home and auto to see how the math compares.

Average Savings, State Availability, and Real-World Pricing

Costco's own marketing has long highlighted average first-year savings of $595.86 for members who switched and bundled home and auto. Independent analysis backs up the broad story.

In other words, the program is best for drivers who carry full coverage. If you only want the legal minimum, mainstream direct writers may beat it.

Where It Is (and Is Not) Available

CONNECT/American Family Costco car insurance is offered in roughly 40-44 states plus DC, but there are notable holes.

If you live in one of the restricted states, you will need to look at alternative carriers. Our Geico review and Progressive review are good starting points for nationwide options.

How Costco Compares to Geico, Progressive, and USAA

Pricing varies wildly by driver, but a few data points help frame the comparison.

Costco vs Geico

In a head-to-head The Zebra analysis using identical coverage and a sample driver, CONNECT came in about $35 per month cheaper than Geico (around 40% lower for a six-month policy). Real-world results from Bogleheads users and Reddit threads echo that finding, with Costco often 10-40% cheaper for full-coverage shoppers. Geico still wins on app quality and nationwide reach. See our full Geico car insurance review for context.

Costco vs Progressive

Direct apples-to-apples studies are scarce, but member anecdotes suggest Costco can run 10-20% cheaper than Progressive for bundlers. Progressive remains the leader on telematics with Snapshot and is more flexible for high-risk drivers. Our deep dive on Progressive's program and Snapshot helps if you drive low miles or want usage-based pricing.

Costco vs USAA

If you are eligible for USAA, that should be your first quote, period. USAA frequently matches or beats CONNECT on price and is consistently near the top in J.D. Power satisfaction studies. Costco's program is the better play for non-military shoppers who still want a service-oriented carrier. Our USAA car insurance review explains eligibility (active duty, veterans, and qualifying family members) and the discount stack.

For shoppers comparing membership-based programs in general, our AAA car insurance review walks through a similar trade-off (the membership perk versus the policy price). And if customer-service ranking matters most, our Amica Mutual review is worth a read, since Amica wins many satisfaction studies but charges more.

Claims, Customer Satisfaction, and the Pros & Cons

Claims are filed directly with American Family 24/7 by phone or online, and you can choose your own repair facility. MarketWatch awarded Costco's CONNECT auto product 5 out of 5 stars for customer service in its 2026 review, and Costco's own data shows nearly 90% of members renewed their policies and 89% reported satisfaction.

That said, online reviews are mixed. The most common complaints involve unexpected rate increases at renewal and friction during larger claims, which is true of most carriers but worth flagging.

Is the Membership Worth It Just for Insurance?

Gold Star membership runs $65 a year and Executive runs $130. If the Costco discount plus bundling saves you even $200 a year over your current carrier, the membership pays for itself with money left over. If you are an Executive Member who also values the free roadside assistance (a $50-$100/year benefit elsewhere) and lifetime renewability, the math gets even better. The membership rarely makes sense as a standalone insurance play, but if you already shop at Costco or want home and auto bundled, it can be a quiet money-saver.

Frequently Asked Questions

Do I have to be a Costco member to get CONNECT insurance?

No, CONNECT (now operating under the American Family name) is technically available to non-members through American Family directly. However, you will not get the Costco member discount or the Executive Member perks like lifetime renewability and complimentary roadside assistance. If you already shop at Costco, getting your quote through the Costco portal almost always produces a better rate.

Is Costco car insurance cheaper than Geico?

In head-to-head studies using identical coverage and driver profiles, Costco's program through CONNECT has come in roughly 35-40% cheaper than Geico, especially for full-coverage policies. That gap shrinks or disappears for minimum-coverage shoppers and varies by state. Always run quotes from both before assuming Costco wins.

What states does Costco car insurance cover?

The program is offered in about 40-44 states plus DC. It is not available in Alaska, Maine, North Dakota, Rhode Island, West Virginia, or Wyoming. California and New York have major restrictions (Costco Insurance Agency is not licensed in NY), and Florida limits Costco pricing to certain auto policies only.

Does Costco car insurance include new car replacement?

New car replacement is not advertised as a universal Costco-exclusive benefit. It may be available as an optional add-on in some states, similar to gap coverage. If new car replacement matters to you, ask the agent specifically about availability in your state and confirm it on your quote before binding the policy.

Will my Costco membership pay for itself with the insurance discount?

For many full-coverage shoppers, yes. Costco reports an average first-year savings of $595.86 for members who switch and bundle home and auto, and even the $130 Executive membership represents a small fraction of that. The math is best if you bundle home and auto, drive a newer vehicle, and have a clean record. If you only carry minimum liability, the savings may not justify the membership fee on insurance alone.