Should You Get Home or Car Insurance Through Costco?
Costco members can get discounted insurance through Connect by American Family — is it really a better deal?
Rachael Green
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Rising home insurance costs mean that many homeowners pay more for insurance than they ever have, and they're turning to alternative options such as Costco car and home insurance to try to save money.
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 for home insurance or car insurance might 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. Whether it'll save money depends on a few factors. Here's what you need to know.
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What is Costco car and home insurance?
The most important thing to note about Costco insurance is that, technically, the policies aren't underwritten by Costco. Instead, the warehouse club has negotiated discounted rates for its members for policies underwritten by CONNECT, one of the operating companies of the American Family Insurance Mutual Holding Company.
The American Family Mutual Holding Company also includes insurance providers such as American Family Insurance, The General and Homesite.
Depending on where you are and what type of insurance you're getting, the actual insurance provider that you would be dealing with if you need to make a claim will vary. That means someone with Costco home insurance in Maryland could have a different customer service experience than, say, a Costco home insurance customer in New Mexico.
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 nationwide renew their policies. That suggests that the customer experience is reasonably positive no matter your state of residence.
What types of insurance does Costco offer?
Car and home insurance aren't the only types of coverage members can get. Here's a list the different types of insurance available through Costco. All these are underwritten by the warehouse club's partners, not by Costco directly:
- Auto. Costco offers many auto insurance coverage options, including traditional policies such as collision and comprehensive insurance. Additional coverages, such as roadside assistance, towing and rental car insurance, are also available.
- Home and condo. Whether you own a home or condo, Costco offers standard coverage to protect the building's structure, your belongings and more. You can also choose from additional coverage options such as 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 helps 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.
- Pet. Costco members can also save on pet insurance, which is underwritten by Figo. When you enroll in pet insurance through Costco, you'll pay 15% less for coverage compared to a non-member with similar coverage needs.
- Life. Costco has partnered with Protective Life Insurance Company to offer discounted term life insurance policies to its members.
Curious about how auto insurance rates compare? Explore some of today's top auto insurance offers with the tool below, powered by Bankrate:
Is Costco insurance available in all states?
No, Costco doesn't offer its members discounted insurance in every state, but it's available in most. If you're seeking home insurance, you can get a quote through Costco in any state except Alaska, Hawaii, California and Florida.
If you want to switch car insurance, Costco's insurance partners offer policies in all states except Alaska, Maine, North Dakota, Rhode Island, West Virginia and Wyoming.
The other types of insurance offered through Costco are also generally available in most U.S. states. But you can check with the underwriting partner to confirm it issues policies in your state before getting a quote.
What do Costco members get with this insurance?
Members can receive several perks and benefits with Costco insurance. In most states, They might be eligible for a discount on home and auto insurance when they provide their Costco membership number while purchasing 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.
Benefits of Costco car insurance for members
Some key members-only perks you get for buying car insurance through Costco:
- Members-only discounts on car insurance in most states.
- Other discounts for things such as a good driving record, parking your car in a garage or taking a defensive driving course.
- Glass repair deductible waiver for windshield repairs.
- Accident travel expense coverage
- Roadside assistance (for executive members only), subject to some limits.
- Lifetime renewability (for executive members only), subject to some exclusions.
Benefits of Costco home insurance for members
Some of the key benefits Costco members can get when buying home insurance through the warehouse club:
- Discounted rates in most states.
- Other discounts for things such as replacing your roof, upgrading your home security or buying a new home.
- Identity theft protection worth up to $15,000 to cover the costs related to recovering your stolen identity.
- Stolen credit card or check fraud protection
- Refrigerated property coverage (for spoiled food related to a power outage).
- Window glass repair reimbursements worth up to $1,000 per repair, up to twice per year (for executive members only).
- Home lockout assistance (for executive members only).
Explore and compare some of today's top home insurance offers with the tool below, powered by Bankrate:
Is Costco insurance worth it?
While Costco members can expect discounted rates in most states, it might not always be the cheapest quote you get. However, the coverage you get and the additional perks (especially for executive members) can make it worth it. Depending on where you are, it might be the cheapest quote in addition to the most comprehensive coverage.
The bottom line: If you're a Costco member, it's worth getting a quote through Costco. But you should also shop around and get multiple quotes to make sure you're getting the best price for the coverage you need.
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