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 in December 2025 it dropped the CONNECT name and now operates simply as American Family Insurance. The change was mainly cosmetic. Coverage, service, and the underwriter did not materially change, and anything you had under the CONNECT brand carries over untouched.

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. Costco raised its membership fees on September 1, 2024 (the first hike in seven years), and those prices remain in effect for 2026.

The Executive tier also earns 2% cash back on qualifying Costco purchases, capped at $1,250 per year. 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 eligible auto policies 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, moving to a non-service state, or purchasing an uninsurable vehicle. Costco is also explicit that it is not a contractual benefit.

Complimentary Roadside Assistance

Executive Members get 24-hour roadside assistance included with most policies. It covers up to $75 per occurrence in most states ($100 in MA, MT, and SC, $80 in TX, and unlimited in NC) for towing, flat tires, jump-starts, lockouts, and fuel delivery. It does not pay for the cost of the battery, gas, oil, or coolant itself. Non-Executive Members must add towing coverage to qualify. If you currently pay separately for roadside through a club like AAA, 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. Learn more about how Travelers handles new car replacement for comparison.

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 (which American Family lists as its largest single discount, roughly 18%), defensive driving course completion, good student, student away at school, safety features, Premier Safety (for households with no violations or claims in four years), Early Bird (quote at least seven days before your policy starts), Steer Into Savings (for switching from another insurer), Loyalty, and a garaging discount in some areas. Accident forgiveness kicks in after about three years of clean driving. Multi-policy bundling remains one of the biggest levers, so it is worth reading our guide on bundling home and auto to compare the math. For a broader menu of savings ideas, see our complete list of car insurance discounts.

Average Savings, State Availability, and Real-World Pricing

Costco continues to advertise savings around $581 for members who switched and bundled home and auto. Third-party analyses in 2026 back up the broader story, though the specific numbers vary by source.

In short, the program is best for drivers who carry full coverage. If you only want the legal minimum, direct writers like Geico often beat it by a wide margin.

Where It Is (and Is Not) Available

The Costco/American Family program operates in roughly 42 to 43 states plus DC in 2026, but the footprint has tightened as American Family has pulled back from disaster-prone states.

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. California drivers should see our cheapest car insurance in California guide instead.

How Costco Compares to Geico, Progressive, and USAA

Pricing varies wildly by driver, but a few 2026 data points help frame the comparison.

Costco vs Geico

Geico has closed the gap significantly in 2026. Most industry surveys now show Geico coming in cheaper than Costco/American Family on full-coverage policies, with Geico averaging around $114 to $118/month versus roughly $157 to $183/month through Costco. On minimum coverage the gap is even wider, with Geico often around $43 to $55/month versus roughly $67 to $79/month through Costco. Where Costco still wins is on Executive perks and lifetime renewability, and for households with a home to bundle. See our full Geico car insurance review for context.

Costco vs Progressive

Progressive averages around $148/month for full coverage nationally, right in the middle of the pack and generally cheaper than Costco depending on the study. Progressive remains the leader on telematics with Snapshot (average $322/year in savings) and is more flexible for high-risk drivers. Our deep dive on Progressive's Snapshot program 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 beats American Family and Costco pricing (around $99/month for full coverage and $46/month for minimum) 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.

If customer service ranking matters most, our Amica Mutual review is worth a read, since Amica wins many satisfaction studies but charges more. And if you want to see how Costco stacks up against the entire market, our roundup of the best car insurance companies for 2026 is a useful starting point.

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. Costco's auto product continues to earn high customer service marks in 2026 third-party reviews, and Costco's own data shows nearly 90% of members renew their policies with high 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. American Family's NAIC complaint index also runs above the industry norm, so pricing isn't the only thing to compare when you shop.

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 $65 to $125/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. Compare it against our roundup of the best car insurance companies for 2026 before switching.

Frequently Asked Questions

Do I have to be a Costco member to get American Family insurance?

No, American Family (formerly CONNECT) is 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?

Generally no. In 2026, Geico's average full-coverage rate of about $114 to $118 per month undercuts Costco's $157 to $183 range in most studies, and on minimum coverage Geico is roughly $30 per month cheaper. Costco can still win for full-coverage bundlers who value Executive-Member perks. Always run quotes from both before switching.

What states does Costco car insurance cover?

The program is offered in roughly 42 to 43 states plus DC in 2026. It is not available in Alaska, Louisiana, Maine, North Dakota, Rhode Island, West Virginia, or Wyoming, and California and Florida are both closed to new business. Florida still allows Costco pricing on certain existing auto policies, and Costco Insurance Agency is not licensed in New York.

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 advertises average first-year savings around $581 for members who switch and bundle home and auto, and even the $130 Executive membership is a small fraction of that. The math is best if you bundle, drive a newer vehicle, and have a clean record. If you only carry minimum liability, the savings often will not justify the membership fee on insurance alone.