Costco offers car insurance to its members, but are there any benefits? – Jalopnik

The car-related benefits of a Costco membership are numerous, ranging from cheap gas to low-priced tires and Kirkland Signature motor oil. And yes, that should pass the same tests as the other brands, even if it is cheaper. Looking for car insurance? Costco offers that too. And like other member benefits, the company’s insurance has some notable benefits.

Now the insurance is not actually underwritten by Costco. What happens here is that once you purchase a Costco membership, you can get a unique package of benefits from Connect Insurance, which in turn is part of American Family Insurance. Things get a little trickier because American Family Insurance is in the process of incorporating the Connect branding into its own brand. For what it’s worth, this company ranked third for overall customer satisfaction in the J.D. Power 2025 US Insurance Digital Experience Study, tied with Progressive and ahead of companies like State Farm, Allstate, Liberty Mutual, and Geico. It’s no wonder that more than 500,000 Costco members have taken advantage of their insurance offering to date.

Just by switching from another insurance company to Connect/American Family you can unlock the first benefit: discounts are available just if you’re a Costco member. However, keep in mind that you may want to stop at Costco Optical first, as the hard-to-read fine print contains a long list of disclaimers and exclusions.

Let’s jump right in with the Connect/American Family Premier Safety Discount. This could apply if all drivers in a given household can demonstrate that they have driven cleanly for four years, with no traffic offences, insurance claims or accidents – regardless of whether the driver was at fault or not – during that period. Improve your driving skills with a qualifying class from your local DMV (or other accredited group), and you may also qualify for the Defensive Driver Discount.

In addition to driving skills, there are also discounts that depend on the fact that your car has certain built-in safety features. Yes, automakers are required by law to incorporate some ADAS technologies, but you can still get Connect/American Family discounts even for low-tech equipment like airbags. As for safety, if you park your car in a garage instead of on the street, you can enjoy even more financial benefits. That said, you should probably investigate the fine print if that garage is hidden under your house.

Having students in the family can add two more ways to save. You can get a discount if you are a full-time student and have sufficient grades, or if there is a student in the family who lives far enough away from home. For people with a student who goes to school at least 100 miles away, Connect/American Family doesn’t charge that much as long as they don’t drive their own car.

Car insurance with Connect/American Family can also provide additional peace of mind through the free roadside assistance program. For Executive members, help is just a phone call away to assist with common problems such as flat tires or jump starts. However, the coverage does not pay for parts. A new battery is out of the question, and so is the gasoline itself if the fuel runs out. Connect/American Family also advertises lifetime renewals, so your policy isn’t canceled just because you had to use it after an accident. (However, we emphasize again that exclusions apply.)

Speaking of which, if something goes wrong, Connect/American Family has your back with agents available 24/7. In addition, if problems arise while traveling (and at a distance of at least 100 miles from home), you can receive reimbursement for out-of-pocket expenses, such as the cost of an overnight stay in a hotel. Insurance can even pay to have your windshield repaired if it cracks, and the company will waive the typical deductible for glass repair as long as it doesn’t need to be replaced.

As for the bottom line, the people of Insurance company America say, “Costco’s annual premiums are between $50 and $400 cheaper” than the other insurers they evaluated. That said, Costco couldn’t make the top 15 on Consumer Reports’ list of best auto insurance companies, so your mileage may vary.