Costco Auto Insurance Review [2023]

Is American Family Insurance a Good Choice?

Is Costco car insurance any good? As with any auto insurance company, there are pros and cons to Costco’s auto insurance policies and rates. We’ve outlined the main pros and cons in the next section, so you can quickly get a better idea of whether Costco auto insurance is right for you.

Pros of Costco Auto Insurance

One of the pros that Costco advertises is that drivers can save hundreds of dollars on their insurance by using Connect, and Costco’s rates tend to fall below the national average rates. Some of the main pros of Costco are as follows:

• Costco’s insurance rates are below the national average insurance rates.
• Costco executive members have guaranteed lifetime renewability.
• Costco offers many discounts and perks for auto insurance customers.

Costco’s auto insurance policies may not be as well known as other car insurance companies, but Connect at Costco has a decent amount of coverage and discounts for drivers.

Cons of Costco Auto Insurance

Costco’s Connect auto insurance plans also have some cons that go along with the pros. The main cons of Costco’s car insurance policies are as follows:

• Costco’s Connect auto insurance is not available in every state, so you may have to switch to a new company if you move.
• Costco requires you to have a Costco membership to get most of the auto insurance policy’s benefits.
• Costco’s Connect auto insurance doesn’t have a mobile app, and it isn’t clear if Connect customers can use the American Family app instead.

You’ll need to be a Costco member to get the best benefits out of your Connect auto insurance policy. If you aren’t a Costco member, then it is likely not worth it to sign up with Connect, as you won’t earn the Costco discount.

Costco Auto Insurance Reviews and Ratings

Checking Costco Insurance reviews and ratings can give you a good indication of how good a company’s customer service is and its financial standing. We’ll review all the important reviews and ratings you should know about below.

Costco Auto Insurance Customer Complaints and Satisfaction

The Better Business Bureau (BBB) gave Connect a rating of A+. On the BBB, there were a total of 79 complaints closed within the last three years. Within the last year, there were 37 complaints closed on the BBB. This isn’t a terrible amount of complaints, and since the BBB considers complaints when making its rating, Connect seems to have a normal amount of complaints.

As for customer satisfaction, Connect scored well in J.D. Power’s latest customer satisfaction study. While Connect only had a rating in California, it scored 834 out of 1,000, which was above the region’s average of 820, putting Connect in third place.

Costco Auto Insurance A.M. Best Rating

A.M. Best gave Connect auto insurance a rating of A (Excellent) for financial strength, which is the third-highest rating, so Connect scored well. This rating means that Connect is financially stable and able to meet its ongoing financial obligations, such as paying out customer claims.

Costco Mobile App Ratings

If you like managing your policy and filing claims from your smartphone, then it is important that the company you pick has a good mobile app. However, Connect does not currently offer a mobile app, and it is unclear whether customers should use the parent company’s American Family mobile app. So while you can file a claim, pay bills, and more online, there isn’t an app, which may deter some customers who prefer doing things from their smartphones.

American Family Insurance Rates

While Costco members earn a discount when they purchase Connect auto insurance, this doesn’t necessarily mean Connect will be the cheapest option of an insurance company for drivers. However, Connect’s auto insurance rates tend to be below the national average rates, as shown in the table below showing Connect’s average rates for minimum liability insurance coverage and full coverage auto insurance.

Since these are just basic averages for car insurance policies, we want to look more into how Connect’s car insurance rates change based on age, driving record, and more — this will better estimate whether Connect’s rates are cheap or expensive for most drivers.

Rates for Teenagers and Young Adults

Younger drivers tend to pay the most for car insurance, even if they have clean driving records, as their inexperience makes them more likely to crash and file a claim. However, once drivers age past 25, they will see their rates decrease if they keep a clean driving record.

Look at the table below to see how much Connect charges on average for young drivers with clean driving records.

Connect’s rates are below the national average, which is good. For example, a 16-year-old male with a clean record will pay an average of $471 per month, which is below the national average of $618 per month. However, we want to note that if these rates seem high, it’s because these average rates are for teenagers and young adults purchasing their own auto insurance policies. The cheaper option is for parents to add teenagers to the parents’ insurance policy.

If you are purchasing your own policy, you may be able to find cheaper rates at companies like State Farm, as its average rates are lower than Connect’s average rates for teenagers. You can read our State Farm auto insurance review to learn more about this car insurance company.

Rates for Adult Drivers

Adult drivers will see a decrease in auto insurance rates if they keep a clean driving record because they have more driving experience than teenagers and are less likely to crash due to inexperience. Take a look at the table below to see how much Connect charges on average for adult drivers with clean records.

Connect’s auto insurance rates are cheaper than the national average, which is good. In addition, since older adult drivers with clean records have proven for decades that they can drive safely, Connect charges drivers in their 50s with clean driving records less than drivers in their 30s.

Rates for Senior Drivers

Newly-retired senior drivers often have some of the cheapest rates as they no longer commute to and from work during rush hour, when most traffic crashes happen. Retired senior drivers also drive less, which means that they have reduced mileage that can earn them a discount on their auto insurance. Take a look at the table below to see the average auto insurance rates for senior drivers at Connect.

However, your rates may increase as you get older since insurance companies charge drivers in their 70s and 80s a little more. Older drivers see higher rates because of increased risks that come with age, such as decreased reaction time and worsening vision. Learn more about the top auto insurance providers for seniors.

Rates for Drivers With Traffic Tickets

Plenty of other factors go into determining a driver’s rates beyond just a driver’s age. A driver’s driving record is one of the biggest factors, as drivers with violations are considered more at risk of filing a claim in the future. Below, you can see how much Connect charges on average for drivers with a traffic ticket on their record.

Connect’s average rates are below the national average, even for drivers with a traffic ticket, which is good. Bear in mind, however, that these rates are for just one traffic ticket. So, you can expect higher rates if you have more than one traffic ticket on your record, especially if it is a more serious traffic violation.

Rates for Drivers With At-Fault Accidents

At-fault accidents will always raise a driver’s rates, as the insurance company will view them as riskier to insure and more likely to file a claim in the future. Below you can see how much Connect charges for drivers with at-fault accidents.

Connect’s rates are below the national average for drivers with an at-fault accident, which is great. For example, a 45-year-old driver with an accident will pay about $136 per month for a full coverage policy if they have an at-fault accident on their driving record, which is roughly $40 cheaper per month than the national average. Learn about how long an accident stays on your record.

Rates for Drivers With a DUI

A DUI will often raise car insurance rates the most at a car insurance company, so drivers with a DUI should always shop around to see which insurance company offers the cheapest rates. Take a look at the table below to see how much Costco’s Connect insurance charges on average for drivers with a DUI on their record.

Connect’s rates are below the national average. For example, a 45-year-old male driver with a DUI will pay about $60 less than the national average. However, remember that even though Connect has average rates below the average, they may not be the cheapest. So if you have a DUI, we recommend shopping around to see if you can find savings on your car insurance policy. Learn about how long a DUI stays on your record.

American Family Insurance Discounts Available

In addition to the discount you get at Connect for being a Costco member, there are also plenty of other auto insurance discounts you can also get to save on your auto insurance. These discounts are as follows:

• Defensive driver discount: If you take a Department of Motor Vehicles (DMV) defensive driving course and show a certificate of completion, you can get a discount.
• Garaging discount: This discount applies if you park your car overnight in a garage.
• Good driver discount: This discount is only available in California and rewards good drivers.
• Good student discount: This discount is for students with good grades, generally a B average or higher or a 3.0 or higher.
• Multi-car discount: If you insure more than one car at Costco’s Connect, you can get a multi-car discount.
• Multi-policy discount: This discount applies to customers who buy more than one type of insurance from the company.
• Premier safety discount: Drivers can only qualify for this discount if all the drivers on the policy have had zero accidents and traffic violations for four years.
• Safety feature discount: You can get a discount if your car has anti-lock brakes, air bags, automatic seat belts, or anti-theft devices.
• Student away discount: If students are away at a school over 100 miles away without a car, you can get a discount as they rarely drive the family car except on breaks and weekends.
• Tenure discount: You can get a discount if you pass certain time-related milestones at the company.

There is a good array of auto insurance discounts available, which means that you can work to reduce your rates after you sign up with the company.

Costco Auto Insurance Contact Infomation

Costco’s Connect auto insurance offers plenty of ways to contact the company. You can call, email, or mail Connect. The phone numbers and fax numbers for Connect are as follows:

• Claims phone number: 1-888-404-5365
• Claims fax number: 1-866-935-2858
• Customer service and sales phone number: 1-888-404-5365
• Customer service and sales fax number: 1-920-330-5607
• Roadside assistance: 1-888-742-4572

You can also contact Connect by email if you prefer. The email addresses for Connect are:

• Claims email: [email protected]
• Customer service email: [email protected]
• Sales email: [email protected]

If you would like to send something in the mail, then Connect has the following addresses for customers:

• Billing address: P.O. Box 19036, Green Bay, Wisconsin 54307-9036
• Claims address: 6000 American Parkway, Madison, Wisconsin 53783-0001
• General address: P.O. Box 19054, Green Bay, Wisconsin 54307-9054
• Overnight address: 3500 Packerland Drive, De Pere, Wisconsin 54115-9070

There are plenty of ways to contact Connect, which is great. Connect’s claim phone number is also available 24/7, so you can file a claim at any time.

How to File a Claim at Costco

It is important that a company’s claim filing process is easy and quick. At Connect, you can file an auto insurance claim online or call Connect at 1-888-404-5365. You can also check the status of your claim or get assistance by emailing Connect at [email protected]

When filing your claim, you should be as thorough as possible to make sure your claim gets approved quickly. Connect will want the following information from you when you file your claim:

• Name, address, and policy number
• Name, address, phone number, and insurance information of any other involved drivers
• Name and numbers of any witnesses to the accident
• Police report, if one was filed
• Description of how, when, and where the accident happened
• Photos of the damages

A claims adjuster will work with you after you file the claim to confirm the accident details and how much damage occurred to the vehicle. Connect also allows you to choose any repair shop you want to get your car repaired, or you can ask for a recommendation for a repair shop if you aren’t sure where to go for repairs.

American Family Insurance Coverage Options

Connect offers many auto insurance coverages for customers. Take a look at the full list of coverages you can get for your auto insurance policy below:

• Bodily injury liability insurance: If you cause an accident that injures another person, bodily injury liability insurance will help pay their medical bills.
• Collision insurance: If your car gets damaged from a collision with another vehicle or a collision with an object like a mailbox, collision auto insurance coverage will pay for your repairs.
• Comprehensive insurance: If your car gets damaged from an animal collision, weather, or vandalism, comprehensive auto insurance coverage will pay for your repairs.
• Gap insurance: If your car gets totaled, gap insurance will pay the difference between your car’s value and the amount left on your lease or loan.
• Medical payments (MedPay) insurance: If you or your passengers get injured in an accident, MedPay will help pay for your medical bills.
• New car replacement insurance: If you have a new car that gets totaled, new car replacement insurance will replace your car with the same make and model if your car is under a year old or has less than 15,000 miles on it.
• Personal injury protection (PIP) insurance: If you or your passengers get injured in an accident, personal injury protection insurance coverage will help pay for your medical bills and things like lost wages and child care.
• Property damage liability insurance: If you cause an accident that damages a person’s property, whether their car or fence, property damage liability insurance will help pay for their repair bills.
• Rental car insurance: If your car is in the shop for an extended period of time, rental car insurance will help pay for your rental car until your car gets repaired.
• Roadside assistance insurance: If your car breaks down, Connect Insurance roadside assistance will help with several basic fixes, such as jumping your car or towing your car to the nearest repair shop.
• Uninsured motorist insurance: If a driver hits you and doesn’t have insurance, uninsured motorist insurance coverage will help pay for your accident bills.

So what is Connect missing? It doesn’t offer rideshare insurance or modified car insurance. So if you need these coverages, you will have to get insurance from a different company. However, Connect offers a great array of car insurance coverages for all other drivers beyond just the basic auto insurance coverages required by your state.

Costco Member Benefits

If you are a Costco member, you get a discount on Connect auto insurance when you apply if you provide your membership number. In addition, Costco executive members get the following perks with their Connect auto insurance policy:

• Lifetime renewability: Costco executive members have a lifetime renewability guarantee, which means their policy won’t get canceled after minor accidents or minor traffic violations.
• Roadside assistance: Costco executive members get 24/7 roadside assistance with their auto insurance policy.

Costco’s advertisement also says that, on average, Costco members save $587 a year by switching to Connect with their Costco membership.

Other Insurance Options at Costco

Connect by American Family sells more than just auto insurance, which Costco members can also save on. Connect also offers the following insurance coverages:

• ATV insurance
• Boat insurance
• Business insurance
• Classic car insurance
• Condo insurance
• Flood insurance
• Home insurance
• Motorcycle insurance
• Renters insurance
• Rental property insurance
• RV insurance
• Umbrella insurance

Connect also offers a multi-policy discount if you purchase more than one type of insurance. Some possible combinations for this discount include auto and home insurance or auto and umbrella insurance. You can also bundle auto, home, and umbrella for a bigger discount.

The Final Word on Costco Auto Insurance

Costco’s partnership with Connect by American Family insurance means that Costco members can get a discount on Connect insurance and potentially get significant savings. Connect’s auto insurance rates are below average, and it has good customer satisfaction reviews, but it is not available in many states.

If Costco auto insurance isn’t available in your area and you want to shop around for cheap auto insurance rates, use our free quote comparison tool. It will help you find the best auto insurance rates from companies in your area.