Should You Get Home or Car Insurance Through Costco?
Costco members can get discounted insurance through Connect by American Family — but is it really a better deal?


Rachael Green
Rising home insurance costs mean that many homeowners are paying more for insurance than they ever have before, and they’re turning to alternative options like Costco car and home insurance to try to save money.
Insurance rates can vary tremendously by location, too, with some states having cheaper home insurance while others pay thousands more than the national average. The same is true for car insurance.
Shopping for home insurance or car insurance may help you save on your premiums since each insurance provider calculates their rates differently. Costco auto and home insurance offers many coverage options and potential discounts. But, whether or not it will save you money depends on a few factors. Here's what you need to know.
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What is Costco car and home insurance?
The most important thing to note about Costco insurance is that, technically, the policies aren't underwritten by Costco. Instead, the warehouse club has negotiated discounted rates for its members for policies underwritten by CONNECT, one of the operating companies of the American Family Insurance Mutual Holding Company.
The American Family Mutual Holding Company also includes insurance providers like American Family Insurance, The General and Homesite.
So, depending on where you are and what type of insurance you're getting, the actual insurance provider that you would be dealing with if you need to make a claim will vary. That means someone with Costco home insurance in Maryland could have a different customer service experience than, say, a Costco home insurance customer in New Mexico.
Costco offers car and home insurance policies in most states and has offered insurance through CONNECT for nearly 20 years. According to Costco’s website, nine out of 10 members nationwide end up renewing policies. That suggests that the customer experience is reasonably positive no matter which state you're in.
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What types of insurance does Costco offer?
Car and home insurance aren't the only types of coverage members can get. Here's a list of all the different types of insurance you can get through Costco. Again, all of these are underwritten by the warehouse club's partners, not by Costco directly:
- Auto: Costco offers many auto insurance coverage options, including traditional policies like collision and comprehensive insurance. Additional coverages, like roadside assistance, towing, and rental car insurance, are also available.
- Home and condo: Whether you own a home or condo, Costco offers standard coverage to protect the building’s structure, your belongings and more. You can also choose from additional coverage options like scheduled personal property coverage to cover high-value items, identity theft protection and personal injury coverage.
- Renters: Renters insurance covers the cost of replacing your personal property, and coverage for liability and medical payments help protect you if visitors are injured while visiting your rental.
- Umbrella: Umbrella insurance provides extra coverage, and it can help make up the gap between your auto or home insurance policy liability limit and the actual cost of a claim. It offers extra financial protection in case someone is injured, such as in a car accident or an accident that occurs on your property.
- Specialty: Costco also offers specialty insurance to cover your ATV, motorcycle, boat or classic car.
- Pet: Costco members can also save on pet insurance, which is underwritten by Figo. When you enroll in pet insurance through Costco, you'll pay 15% less for coverage compared to a non-member with similar coverage needs.
- Life: Costco has partnered with Protective Life Insurance Company to offer discounted term life insurance policies to its members.
Curious about auto insurance rates? Explore some of today's top auto insurance offers with the tool below, powered by Bankrate:
Is Costco insurance available in all states?
No, Costco doesn't offer its members discounted insurance in every states. But, it is available in most. If you're looking for home insurance, you'll be able to get a quote through Costco in any state except Alaska, Hawaii, California and Florida.
If you're looking to switch car insurance, Costco's insurance partners offer policies in all states except for Alaska, Maine, North Dakota, Rhode Island, West Virginia and Wyoming.
The other types of insurance offered through Costco are also generally available in most U.S. states. But you can check with the underwriting partner to confirm it issues policies in your state before getting a quote.
What do Costco members get with this insurance?
Costco members can receive several perks and benefits with Costco insurance. In most states, Costco members may be eligible for a discount on home and auto insurance when they provide their Costco membership number while purchasing a policy.
Additionally, buying insurance through Costco is convenient. When you buy home and auto insurance policies, you can bundle them together and pay both policies at once.
Benefits of Costco car insurance
Here are some of the key member's only perks you get for buying car insurance through Costco:
- Member's only discounts on car insurance in most states.
- Other discounts for things like a good driving record, parking your car in a garage or taking a defensive driving course.
- Glass repair deductible waiver for windshield repairs.
- Accident travel expense coverage
- Roadside assistance (for executive members only) subject to some limits.
- Lifetime renewability (for executive members only) subject to some exclusions.
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Benefits of Costco home insurance
Here are some of the key benefits Costco members can get when buying home insurance through the warehouse club:
- Discounted rates on home insurance in most states.
- Other discounts for things like replacing your roof, upgrading your home security or even just buying a new home.
- Identity theft protection worth up to $15,000 to cover the costs related to recovering your stolen identity.
- Stolen credit card or check fraud protection
- Refrigerated property coverage (for spoiled food related to a power outage).
- Window glass repair reimbursements worth up to $1,000 per repair, up to twice per year (for executive members only).
- Home lockout assistance (for executive members only),
Explore and compare some of today's top home insurance offers with the tool below, powered by Bankrate:
Is Costco insurance worth it?
While Costco members can expect discounted rates in most states, it may not always be the cheapest quote you get. However, the coverage you get and the additional perks (especially for executive members) can make it worth it. And, depending on where you are, it may well be the cheapest quote in addition to the most comprehensive coverage.
The bottom line is: if you're a Costco member, it's worth at least getting a quote through Costco. But, you should also shop around and get multiple quotes to make sure you're getting the best price for the coverage you need.
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Paige Cerulli is a freelance journalist and content writer with more than 15 years of experience. She specializes in personal finance, health, and commerce content. Paige majored in English and music performance at Westfield State University and has received numerous awards for her creative nonfiction. Her work has appeared in The U.S. News & World Report, USA Today, GOBankingRates, Top Ten Reviews, TIME Stamped Shopping and more. In her spare time, Paige enjoys horseback riding, photography and playing the flute. Connect with her on LinkedIn.
- Rachael GreenPersonal finance eCommerce writer
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