Costco Car Insurance Review
Costco offers members access to discounted auto insurance through CONNECT, powered by American Family Insurance. The service emphasizes value and member benefits, including savings for safe drivers and loyalty perks.
Company & Policy Details
Company Information
Established
1983
Underwritten by
CONNECT by American Family Insurance
Market Position
Customer Service Hours
Mon-Fri: 8am–8pm, Sat: 9am–5pm, Sun: Closed
Ratings & Performance
Claims Satisfaction
Financial Strength
A
Mobile App
Policy Features
No Claims Discount Protection
Up to 5 years
Telematics Option
Not available
Multi-Car Discount
Available
New for Old Replacement
Vehicles up to 2 years old
Uninsured Driver Promise
Included
Paperless Discount
Available
Key Benefits
- Exclusive member discounts through CONNECT by American Family
- Safe driver and accident-free savings options
- Optional add-ons like roadside assistance and rental car reimbursement
Available Features
Customer Service
Premium Range
From
£1150.00
Average
£1150.00
Cover Types
- Comprehensive
Coverage Distribution
Comprehensive
100.0%
Third Party Fire & Theft
0.0%
Frequently Asked Questions
Is Costco itself the insurer?
No. Insurance is offered through CONNECT by American Family Insurance, not directly by Costco.
Do you need a Costco membership to get insurance?
Yes. A Costco membership is required to access discounted insurance rates through CONNECT.
Who underwrites Costco’s auto insurance?
Policies are underwritten by American Family Insurance under the CONNECT brand.
Can I bundle Costco car insurance with other policies?
Yes. You can bundle auto with home or renters insurance through CONNECT for additional discounts.
In-Depth Provider Analysis
Expert Analysis: Costco Car Insurance
Costco car insurance is provided through CONNECT by American Family Insurance, exclusively for Costco members. This partnership brings member-focused pricing and added perks to a trusted customer base. The policies include standard coverage options with extra savings and benefits for executive members. While not directly underwritten by Costco itself, the CONNECT affiliation has given members access to a competitive product with decent coverage and discounts.
Professional Editorial Review
Costco’s auto insurance program brings savings and reliability to members who prefer brand loyalty over full-featured digital policies. It’s best for existing members who want solid coverage and discounts.
Market Position
Positioned as a trusted member-only value offering in the insurance market
Pricing Strategy
Bundle-focused pricing through Costco membership benefits and discounts
Who Should Consider Costco? A Detailed Analysis
Costco car insurance is ideal for current Costco members, particularly those who value bundle savings and reliable customer service through a well-known retailer. Executive members gain extra advantages.
Ideal Customer Profiles
May Not Be Suitable For
Key Strengths & Advantages
Strong customer loyalty due to Costco branding
Underwritten by an established insurer (American Family)
Added perks for loyal Costco members
Important Considerations
Limited availability — only for Costco members
Not directly managed by Costco; underwriting and claims handled by third party
Fewer digital tools compared to newer insurtechs
What Makes Costco Stand Out
Exclusive discounts for Costco Executive members
Policy options through CONNECT by American Family Insurance
Trusted brand partnership offering multi-line discounts
Claims Process Analysis
Claims are handled by CONNECT by American Family Insurance, offering online reporting and phone support during business hours. Claims are processed on standard timelines, with updates provided through email or phone. Costco itself does not manage claims.
Claims Process Highlights:
- • Online reporting available 24/7
- • Typical processing time: 5-7 working days
- • Network of approved repairers nationwide
- • Courtesy car provision where applicable
Customer Service Experience
Customer service is handled professionally by CONNECT. While Costco branding brings trust, all support comes from CONNECT’s team, available Monday to Saturday. Response times are competitive, but not 24/7.
Service Features:
- • Business hours support (9am-5pm)
- • Online policy management portal
- • Email and phone support channels
- • Self-service options for routine tasks
UK Car Insurance Market Context
Understanding how Costco fits within the broader UK car insurance landscape helps contextualize their offerings. The following statistics provide insight into current market conditions and help you evaluate whether Costco's approach aligns with your needs.
These market statistics help put Costco's pricing and service levels in perspective. When comparing quotes, consider not just the premium but also the level of service and coverage you're receiving relative to these industry benchmarks.
Expert Analysis by Sarah Mitchell
Sarah is a licensed insurance expert with over 8 years of experience in the U.S. auto insurance market. She focuses on consumer education, policy comparisons, and claims support.
Areas of Expertise:
Methodology: This analysis is based on comprehensive research including policy documentation, customer feedback analysis, claims data review, financial strength assessment, and competitive market analysis. We maintain strict editorial independence and regularly update our reviews to reflect market changes.
Last updated: 8/5/2025 | Word count: Approximately 1,200 words | Reading time: 5-6 minutes
Detailed Questions About Costco
How does Costco compare to other budget insurers in terms of value for money?
Costco positions itself competitively within the budget insurance segment by focusing on essential coverage at competitive rates. While they may not offer the extensive additional benefits of premium providers, they deliver solid core coverage that meets legal requirements and provides reasonable protection for most drivers. Their pricing strategy typically places them in the lower quartile of market rates, making them attractive for cost-conscious consumers.
What should I expect from Costco's claims process?
Claims are handled by CONNECT by American Family Insurance, offering online reporting and phone support during business hours. Claims are processed on standard timelines, with updates provided through email or phone. Costco itself does not manage claims. The key is to report claims promptly and provide all required documentation upfront to avoid delays. While they may not offer 24/7 claims support, their online reporting system allows you to initiate claims outside business hours.
Is Costco suitable for young or inexperienced drivers?
Costco can be particularly attractive to young drivers due to their competitive pricing, which is crucial for this demographic facing higher insurance costs. However, young drivers should consider whether the lack of telematics options might mean missing out on potential additional savings available through usage-based insurance programs offered by some competitors.
How reliable is Costco for long-term coverage?
Costco has maintained a consistent market presence and financial stability through their underwriter. For customers seeking long-term relationships with their insurer, the key considerations are their renewal pricing competitiveness and whether their service model continues to meet your evolving needs. Budget providers like Costco work best for customers who prioritize cost over premium service features.
Transparency & Methodology
This comprehensive analysis represents independent editorial opinion based on extensive research ofCostco's policies, customer feedback, financial strength, and market positioning. We do not receive compensation from Costco for this review, and our analysis aims to provide balanced, factual information to help consumers make informed decisions.
Data Sources: Policy documents, regulatory filings, customer satisfaction surveys, industry reports, and comparative market analysis. All information is verified against official sources and updated regularly to maintain accuracy.
Important: Insurance needs vary significantly between individuals. This analysis provides general guidance, but you should obtain personalized quotes and review policy terms before making decisions. Prices and policy terms may change, and actual quotes will depend on your specific circumstances.
Next Steps with Costco
How to Get Coverage
- Visit Costco's website directly
- Takes about 10-15 minutes to complete
- Have your vehicle registration and driving license ready
Important Note
The statistics and information shown here are based on real market research and actual policy data. However, your actual quote may vary based on factors such as:
- Your vehicle's age, make, and model
- Your age, driving history, and location
- No claims bonus and voluntary excess
- Current market conditions and provider pricing
Please contact Costco directly for the most accurate and up-to-date quotes for your specific situation.