Costco Insurance
- Offers a wide assortment of discounts.
- Guaranteed lifetime renewability and roadside assistance included for auto policies purchased through Costco as an executive member.
- More than the expected number of complaints to state regulators for auto insurance.
- Few optional types of car insurance.
Editor's note: Costco’s car insurance used to be called Connect before it changed its name to American Family Insurance in December 2025. The company was already a part of American Family, and the change won’t affect your policy, coverage or the underwriter of your policy. The only thing that will change, according to American Family, will be the brand name on your policy documents.
NerdWallet's take on Costco auto insurance
Costco, through its partnership with American Family, earned 3.9 stars out of 5 in our analysis for the discount that it offers Costco members, as well as its selection of other savings opportunities.
Best for: Drivers with the highest tier of Costco membership, the Executive Member level, who want auto and home insurance.
Not ideal for: Drivers looking for many ways to customize a basic policy.
Where Costco auto insurance stands out
Exclusive perks for some Costco members. You could access extra perks that aren’t available to others depending on your Costco membership level. Costco car insurance includes roadside assistance and lifetime renewability for those in its highest membership tier.
Discounts on home and auto insurance. Costco touts discounted insurance rates for its members. If you’re a member of Costco and you need auto or home insurance, you might consider getting a quote to see how the insurer’s discounted rate compares to other insurers’ prices.
Where Costco auto insurance falls short
Mixed customer experience ratings. Policyholders of Costco’s car insurance through American Family submit more complaints to state regulators than expected for the insurer’s size. Additionally, the company scores slightly worse than average in California for customer satisfaction in J.D. Power’s Auto Insurance Study.
Coverage offerings. Costco allows you to add roadside assistance, available as a benefit to some Costco members, and rental car reimbursement to a policy. These types of coverage can be useful, but you might have to consider another insurer if you want more options.
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Are Costco car insurance and American Family the same?
The car insurance that you get through Costco is issued and underwritten, or guaranteed, by American Family Insurance. But there are some key reasons we rated American Family car insurance higher than the car insurance you get through Costco in our analysis of auto insurance companies.
Digital experience: American Family has a dedicated mobile app where you can track open claims.
Complaints to state regulators: American Family receives fewer complaints than expected for its size, while American Family through Costco receives more.
Discount offerings: American Family offers more discounts than what’s available through Costco, including a usage-based insurance option called DriveMyWay.
Coverage offerings: While coverage isn’t a factor in our ratings methodology, it should be said that American Family may offer slightly different types of insurance than those that are available through Costco.
This doesn’t mean that the car insurance that’s available through Costco isn’t worth getting. In fact, we rated it relatively highly in our study. But before you buy a policy, make sure its price works for you, and check that you’ll get all of the features you want.
In some states, you may be able to get an American Family policy either through Costco or through the insurer itself, and it’s worth comparing to see which is the better fit for you. In other states, Costco may be your only option if you want American Family coverage.
Costco auto insurance discounts
Costco members receive a discount on auto and home insurance policies in most states.
Depending on your state, you may also be able to save on your auto policy by:
Meeting standards for being a safe driver (in California).
Not having any traffic violations, accidents or claims in the past four years.
Completing an approved defensive driving course.
Having vehicle safety features such as anti-lock brakes, air bags, automatic seat belts or anti-theft devices.
Bundling your auto insurance with home or umbrella insurance.
Parking your car overnight in a garage (in certain areas).
Meeting standards for being a good student.
Having a student on your policy who is at least 100 miles away at school and keeps their car at home.
Having continuous auto insurance coverage with American Family.
The cheapest car insurance that you can get is the minimum coverage your state requires all drivers carry. While the low cost of minimum coverage sounds appealing, you likely need more coverage. Minimum coverage could leave you without enough insurance to pay for the damage caused by a serious accident, or even less serious damage from an animal or falling tree branch.
Costco auto insurance coverage
The full coverage policies that you can get through Costco include the standard types of car insurance coverage offered by most insurers:
- Liability insurance
Liability car insurance pays for others’ injuries or property damage you cause in a car accident, up to your auto policy limits. There are two types:
Bodily injury liability covers others’ medical expenses after an accident where you are at fault.
Property damage liability covers the repair costs to other vehicles, fences, mailboxes or buildings from an accident.
Is it required? Yes. Every state, except for Virginia and remote parts of Alaska, requires drivers to have a minimum amount of liability car insurance in order to drive legally.
- Personal injury protection
Also known as "no-fault insurance," PIP covers your own injuries and medical expenses after a crash, regardless of who's at fault, up to your policy limits. Depending on your state, PIP could also help pay for:
Lost wages if you're unable to work due to your injuries from a car accident.
Services you can't perform because of an accident, such as house cleaning or child care.
Funeral costs if an injury from an accident leads to death.
A small death benefit as a cash payout.
Is it required? Personal injury protection is required in the following states: Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon and Utah.
- Medical payments coverage
Medical payments coverage, or MedPay, helps pay for your medical expenses or funeral costs after a car accident, no matter who's at fault, up to your policy limits. It also pays for medical bills if you or one of your family members is hit by a car while on foot, riding a bike or traveling as a passenger in someone else’s car.
Is it required? MedPay is required in Maine and New Hampshire, and can be purchased as an optional add-on in most other states. In a few states, MedPay can't be purchased because personal injury protection is required.
- Uninsured/underinsured motorist coverage
Uninsured and underinsured motorist coverage pays out if you're in an accident where the at-fault driver has no liability car insurance, or not enough to cover your injuries or property damage. It can also be used to pay for your passengers’ and household family members’ injuries.
Is it required? Uninsured/underinsured motorist coverage is required in Washington, D.C., and the following states: Connecticut, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia and Wisconsin.
- Collision insurance
Collision insurance reimburses you to fix or replace your car if you crash into another car or object. It can also pay for hit-and-runs, rollovers and damage caused by uninsured or underinsured drivers.
Collision insurance becomes less useful the older your car is. That's because it reimburses you for repairs only up to the actual cash value of your car, minus your deductible.
Is it required? Collision insurance isn't mandatory in any state, but most lenders require it if you finance or lease your car. And when you buy collision insurance, you'll likely have to also get comprehensive insurance, which pays for damage to your car from non-traffic-related causes.
- Comprehensive insurance
Comprehensive insurance reimburses you to fix or replace your car after non-traffic-related causes, such as:
Weather events, like hail, floods or tornadoes.
Falling objects, such as tree limbs.
Fire or explosions.
Hitting an animal.
Car theft and broken windows.
Earthquakes.
Vandalism or civil disobedience, such as a riot.
Comprehensive insurance becomes less useful the older your car is. That's because it reimburses you for repairs only up to the actual cash value of your car, minus your deductible.
Is it required? Comprehensive insurance isn't mandatory in any state, but most lenders require it if you finance or lease your car. And when you buy comprehensive insurance, you'll likely have to also get collision insurance, which pays for damage to your car from traffic-related causes.
Optional coverage
Costco, through its partnership with American Family, offers a few optional forms of car insurance in addition to the standard coverage types. You could add:
Roadside assistance. If your car breaks down, roadside assistance may help provide you with a tire change, a tow to a repair shop, battery jump-start, fuel delivery and other roadside services. Some Costco members may get this coverage as a policy benefit.
Who might need it? Roadside assistance could be worth adding if you take frequent long car rides and road trips. You could pass on it if you receive similar coverage from a credit card or a membership like AAA.
Rental car reimbursement. This coverage helps you pay for a replacement for your regular vehicle while it’s being repaired. You choose the per-day dollar amount that it covers when you sign up.
Who might need it? You might need rental car reimbursement coverage if you depend on your car to get to work or school. You might pass on it if you don’t drive frequently.
If you’re an Executive Member of Costco, you may also qualify for:
Roadside assistance, which generally covers up to $75 of your expenses if you get a flat tire, run out of gas or have a dead battery.
Lifetime renewability, which guarantees that your car insurance policy won’t be canceled, even if you have multiple accidents. (Some exceptions apply, and this benefit isn’t available in all states.)
When you have an idea of what coverage you need (and the extras you want to purchase), shop around for car insurance to find the insurer with the best rates. Companies don’t price their coverage the same, and some even include certain add-ons in the cost of a standard policy.
Is Costco car insurance good?
If you shop at Costco and want access to a car insurance company with extra perks for some members, its American Family insurance could be a good option to consider. That said, customer experience may be mixed.
Complaints: Costco’s American Family car insurance receives more complaints to state regulators than expected for its size, according to three years’ worth of data from the National Association of Insurance Commissioners.
Customer satisfaction: Costco’s American Family car insurance ranks just below average in J.D. Power’s Auto Insurance Study for overall customer satisfaction in California.
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More information about Costco car insurance
Customer service: You can contact customer service by calling 1-888-239-9953 or emailing servicepromise@amfam.com.
Website: The Costco-American Family website has straightforward information explaining discounts and coverage options. It also supports online claims filing, though you may need to speak with someone to check on the status of a claim.
Other Costco insurance reviews
How we review auto insurance companies
Our editorial team considers these factors when reviewing auto insurance companies:
- Financial strength
We use AM Best ratings to confirm an insurer’s long-term financial stability and ability to pay claims. NerdWallet does not recommend companies with a rating lower than a B.
- Complaints
These ratings are based on complaints to state regulators relative to a company’s size, according to three years’ worth of data from the National Association of Insurance Commissioners. The best auto insurance companies have fewer than the expected number of complaints.
- Ease of use
This category looks at how easily consumers can interact with an insurer through its mobile app and website. This includes how much coverage information is offered online, whether a user can start and track a claim online and get a quote and mobile app scores based on the Apple and Google Play store ratings.
- Discounts
We look at the kind of discounts a company offers and the total number of discounts available.
Read our full auto insurance methodology.
We nerd out on car insurance
Our goal is to give you what you need to make smart decisions about your car insurance.
Here’s why you can trust NerdWallet:
We do our homework. We regularly evaluate and review many of the insurance companies we write about. And all of our content is fact-checked before publication. This means the star ratings you see on our reviews are accurate and up-to-date.
We analyze the data. We update our average car insurance rates every month. To do that, we analyze more than 500 million rates from across the country. These rates are provided by Quadrant Information Services.
We are unbiased. NerdWallet’s content is never influenced by our business partners and advertisers. Learn more about how we write in our editorial guidelines.
Frequently asked questions
How do I get a Costco car insurance quote?
How do I get a Costco car insurance quote?
You can get a quote online, or by contacting a salesperson by sending an email to servicepromise@amfam.com.
How do you file an insurance claim with Costco?
How do you file an insurance claim with Costco?
You can file an auto claim online.
Is Costco insurance American Family?
Is Costco insurance American Family?
Yes, Costco offers insurance to its members through a partnership with American Family. Insurance through Costco has benefits that are specifically for its members, such as a discount on home and auto insurance for being Costco members, plus up to $75 in roadside assistance coverage in most cases for the highest-tier members.
Methodology
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2022-2024. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
Auto insurance ratings methodology
NerdWallet’s auto insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints and discounts. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. Using our editorial discretion, we also consider customer satisfaction surveys. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines and full ratings methodology for auto insurance.
