Unlocking Savings: Understanding Costco Auto Insurance Benefits for Cardholders

Discover how Costco Auto Insurance provides unique benefits for Costco cardholders without overpromising. Explore how this insurance option offers competitive rates and exclusive perks like discounts and streamlined claims.

Sydney Blunt

23 Apr 2026 • 3 min read

Understanding Costco Auto Insurance for Costco Cardholders

Costco is widely known for its wholesale retail operations, but many don't realize that it also offers various financial and insurance services for its members. Among these is the Costco Auto Insurance program, which provides exclusive deals and benefits to Costco cardholders. If you are a member, you may be wondering how this program works and whether it might be the right choice for your auto insurance needs.

What Is Costco Auto Insurance?

Costco Auto Insurance is not an insurance company itself. Rather, it is a service provided in partnership with CONNECT, powered by American Family Insurance. This partnership allows Costco members to access a variety of insurance products at discounted prices, including auto, home, and renters insurance.

Benefits for Costco Cardholders

Costco cardholders can take advantage of several benefits when they sign up for auto insurance through the Costco program:

Exclusive Member Discounts: Members often receive rates that are lower than standard market rates. In 2026, the average savings reported was up to 15% compared to non-member rates.
High-Quality Customer Service: Connect by American Family Insurance has received positive reviews for its customer service, providing support through phone and online channels.
Home Glass Repair Reimbursement: Costco's program includes coverage for home glass repair, which is a unique benefit not commonly offered in standard auto insurance policies.
Roadside Assistance: Emergency roadside assistance is available, providing peace of mind for drivers in distressing situations.

How to Qualify for Costco Auto Insurance

To qualify for Costco Auto Insurance, you must be a Costco member. There are two main types of membership:

Gold Star Membership: This is the standard membership, available to anyone over the age of 18. As of 2026, annual fees are $60.
Executive Membership: Offering additional benefits and rewards, this tier includes a 2% cashback reward on qualified purchases and is priced at $120 annually.

Once you have a valid membership, you can request a quote from CONNECT, either online or by phone. It's a straightforward process, and you can compare the rate to your current insurance premiums to ensure you're getting the best deal.

Coverage Options Available

Costco Auto Insurance offers a range of standard auto coverage options:

Liability Coverage: Protects you in the event you are deemed responsible for an accident, covering costs for bodily injury and property damage of others.
Collision Coverage: Pays for damage to your car from a collision, regardless of who is at fault.
Comprehensive Coverage: Covers damages from incidents other than collisions, such as theft, fire, or natural disasters.
Uninsured/Underinsured Motorist Protection: Offers protection if you are in an accident with a driver who lacks adequate insurance.
Personal Injury Protection: Covers medical expenses for you and your passengers following an accident.

Real-World Example: A Satisfied Member

Let's consider Jane, a Costco Executive Member from Seattle who switched to Costco Auto Insurance in early 2026. She reports saving approximately $180 annually on her premiums while enjoying ongoing discounts and reliable customer support. Jane particularly appreciated the comprehensive online portal that allowed her to manage her policy and claims with ease.

Frequently Asked Questions

Here are some common questions regarding Costco Auto Insurance:

Is Costco Auto Insurance available in all states? CONNECT by American Family Insurance provides coverage in most states, but availability may vary. It's best to check with CONNECT for specific state coverage.
Can I insure multiple vehicles on one policy? Yes, you can insure multiple vehicles, often at a discounted rate. This flexibility is perfect for families with several cars.
Does Costco offer other types of insurance? Yes, aside from auto insurance, members can also access home, renters, and umbrella insurance through COSTCO’s partnership with CONNECT.

Deciding if Costco Auto Insurance Is Right for You

Choosing the right auto insurance involves considering your budget, the coverage you need, and the benefits that come with your choice. Costco Auto Insurance is a reputable option for many, thanks to its member-exclusive savings and strong partnership with American Family Insurance.

Ultimately, if you're a Costco member looking to save on auto insurance without compromising on services and support, it's worth exploring the options available through Costco's program. With current options, members can enjoy robust coverage with the added peace of mind that comes from trusted, national insurance underwriting.