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

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.
According to the U.S. Department of the Treasury, the average home insurance cost rose 8.7% faster than the rate of inflation from 2018 to 2022. 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 around 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.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
What is Costco car and home insurance?
Costco car and home insurance policies feature several coverage options. While Costco doesn’t underwrite its own policies, the wholesaler partners with 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.
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 renew their policy through CONNECT.
You can buy several types of insurance through Costco:
- 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 coverages to protect the building’s structure, your belongings and more. You can also choose from many 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.
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 when they purchase 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.
Stack Social is offering a Gold Star Membership + $20 Digital Shop Card for the price of a $65 Gold Star membership.
It is also offering an Executive Gold Star Membership + $40 Shop Card for the price of a $130 Executive Gold Star membership.
Benefits of Costco car insurance
Costco Executive members can receive roadside assistance to help with issues like changing a flat tire or replacing a dead battery.
As long as individuals remain Costco Executive members, they can receive lifetime renewability for their auto insurance policy.
You can get several car insurance discounts through Costco:
- Good driver discount (in California only)
- Premier safety discount if all of the insured drivers haven’t had traffic violations, accidents or claims in the past four years
- Defensive driver discount for taking a "refresher" driving course
- Discounts for vehicle safety features like airbags
- Garaging discount if you park your vehicle in a garage overnight
- Good student discount for full-time students
- Student away discount if a student attends school more than 100 miles away from home
- Multi-vehicle discount for insuring multiple cars, trucks or vans with Costco
Benefits of Costco home insurance
Costco also offers numerous home insurance benefits. If a window on your home is broken, Costco could pay up to $1,000 toward replacing or repairing the window.
Home insurance also includes home lockout assistance, which is available 24 hours a day, seven days a week.
Other benefits include up to $15,000 in identity fraud expense protection, equipment breakdown to cover failures in home appliances and potential service line coverage to cover costs of downed utility lines or broken pipes connected to your home.
You can get several home insurance discounts through Costco:
- Discounts for a new or new-too-you home
- Discounts for safety devices, like burglar alarms or sprinklers
- Discounts if you completely replace your roof
What are the pros and cons of Costco insurance?
If you’re considering Costco auto and home insurance, then be sure to weigh the pros and cons of this coverage.
Pros:
- Costco offers discounted rates to members
- You’ll be buying from a trusted brand
- Costco has received solid insurance reviews from many policyholders
Cons:
- Costco insurance isn’t available in every state
- Costco insurance policies aren’t always the cheapest option, especially after renewal
- Some policyholders have complained about the claims process
Shopping around for insurance can help you save money, but it’s always important to make sure you’re choosing a policy that provides the coverage you want.
Take your time to get quotes, compare your coverage options, ask about any discounts you would qualify for and choose the insurance that’s best for you.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

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.
-
President Trump Makes Markets Move Again: Stock Market Today
The White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
-
Are Tariffs and the ‘Pumpkin Spice Tax’ Coming for Your Fall Coffee Budget?
Food Taxes Inflation pressures, tariffs, and talk of the so-called 'pumpkin spice tax' have some wondering about rising coffee prices.
-
Building a Business That Lasts: The Critical Steps to Avoid Blunders
'Another Way' author David Whorton offers advice on how to build an 'evergreen' business that endures by avoiding common pitfalls that can lead to failure.
-
How Grandparents Can Help with Education Expenses
Before paying for your grandkids' education, it's important to consider how to help them without risking your own retirement. Here are 10 things to think about.
-
Abu Dhabi Adventures: New Thrills, Iconic Sights and Disney’s Latest Park
Discover the mix of culture, wildlife and modern marvels that make this Middle Eastern city a destination to watch.
-
Four Money Habits Boomers Swore By That Millennials Are Walking Away From
Millennials are trading tradition for flexibility when it comes to building wealth.
-
My First $1 Million: Health Care Worker, 48, Sagadahoc County, Maine
Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Despite Our Grumbles, America Still Delivers on the Dream: Perspective From a Financial Pro Who's Seen Stuff
Some of us might complain about the state of our nation (and those concerns are legit), but America still offers unparalleled opportunities and mobility that many people around the world only dream about.
-
Sling TV Launches Select Plan With Lower Price Point
A lean new $19.99 bundle combines top news, sports and entertainment channels with 4K options and local feeds.
-
Are Rideshare Drivers on the Road to Financial Ruin?
Being a rideshare driver can be a great way to meet people and make money. But overlooking this one thing could cost you thousands.