Costco Car Insurance Review 2023 - Business Insider
- Types of Auto Insurance Plans
- Additional Coverage Options
- How Much Does Costco Auto Insurance Cost?
- How to File a Claim
- FAQ
- How Costco Car Insurance Compares
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While many love Costco for its wholesale prices and value of its food court meals, Costo offers several other services to members, including auto insurance. Costco auto insurance is offered through Connect, powered by American Family Insurance.
Those who have Costco memberships rave about its wholesale prices and the value of food court meals, but it also offers several other services to members, including auto insurance. Costco auto insurance is offered through Connect, powered by American Family Insurance.
You'll need a Costco membership to get insured, but the upside is a variety of discounts, and generally affordable rates.
Types of Auto Insurance Plans from Costco
Before you consider the various types of car insurance offered by Costco, make sure you're a member so you're eligible to purchase a policy.
There are two types of Costco memberships: Gold Star, which allows members to shop in-store and online, and the Executive, which provides all the same benefits as the Gold Star plus 2% cash back. The Gold Star membership costs $60 per year, while the Executive costs $120 per year.
Costco Executive members get additional perks, including free roadside assistance and lifetime renewability. And while auto and home insurance are Costco's primary offerings, it also has renters, umbrella, life, pet, business health, and specialty insurance.
Connect offers the following types of auto insurance:
- Comprehensive: Covers "out of your control" events, such as weather-related events, vandalism or theft, or hitting an animal.
- Collision: Covers collisions with another vehicle or object, such as a light pole or a pothole.
- Rental car: Also known as rental reimbursement coverage, pays up to a daily amount you select towards a rental vehicle after a covered loss.
- Bodily injury: If you injure someone in an accident and are found at fault, this can help cover the cost of a lawsuit, jury award, or settlement.
- Property damage: If you're in an accident and cause damage to another's property, such as sliding on ice into your neighbor's mailbox or hitting a parked vehicle, this can help pay for the damage.
- Uninsured motorist: If you're in an accident and the other driver is uninsured or underinsured, this will help pay for your medical expenses and damaged vehicle.
- Medical expense: Covers medical-related expenses after an accident, including hospital stays, doctor visits, and ambulance fees.
- Personal injury protection: Personal Injury Protection (PIP) is required in some states and can cover medical expenses, lost wages, lost services (such as childcare), and funeral expenses.
- Guaranteed auto protection: Guaranteed Auto Protection (GAP) covers the difference between what your new car is worth, or what you still owe, and what your insurance policy will pay out.
Comprehensive insurance includes stolen key coverage, which involves replacing the locks and waiving the deductible if it costs under $250.
Connect also offers accident forgiveness, which will essentially overlook a first at-fault accident and not raise your premiums, after you maintain a clean driving record for a certain amount of time.
There's also free windshield repair for Connect customers, and the Glass Repair Deductible Waiver ensures that your deductible will be waived if your windshield only needs repair, not replacement.
Currently, Costco Insurance Agency is not offering new auto or home insurance policies to residents of California. Costco car insurance isn't available in Alaska, Louisiana, Maine, North Dakota, Wyoming, either.
Additional Coverage Options (Riders)
Costco Executive Members can enjoy the following exclusive benefits:
- Real-time roadside assistance: This benefit offers up to $75 per incident for each covered vehicle, including help for a flat tire, dead battery, low fuel, or something unexpected. This does not cover the cost of fuel or battery.
- Lifetime renewability: If something unexpected happens, even more than once, you may still be able to have your policy renewed for your lifetime.
- Accident travel expense coverage: To make your life easier when you're on vacation or traveling and involved in a car accident, Connect will help cover accommodation and travel expenses if in an accident more than 100 miles from home disables your vehicle.
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