Car Insurance Reviews

Costco Car Insurance Reviews: Cost & Coverage (2022 Guide)

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Is there a costco auto insurance policy available to you, and if so, is it worth the money? In this article, our team will look at Costco auto insurance reviews, coverage options, benefits, and more to help you decide.

Reading: Is costco car insurance good

Technically, Costco doesn’t sell auto insurance on its own; it is backed by a larger insurance company. We’ll take a look at what this means below, but we also encourage you to get quotes from several of the major auto insurance providers to ensure you can’t get a better deal directly from a larger company. You can use the simple tool above to start comparing free auto insurance quotes.

in this article:

  • costco car insurance review: 3.5 stars
  • costco car insurance overview
  • costco car insurance rates
  • costco car insurance coverage
  • costco car insurance customer reviews
  • costco car insurance: conclusion

costco car insurance review: 3.5 stars

we rate costco auto insurance 3.5 out of 5.0 stars overall. the carrier has a long list of discounts but lacks coverage, customer service, and technology, and it’s not available in all states.

If you’re already a Costco member and looking for basic insurance without too many frills, Costco auto insurance may have a great deal for you. The insurer includes helpful benefits with every insurance policy, including glass repair, stolen keys coverage, and travel accident benefits.

Here’s a snapshot of the pros and cons of costco car insurance:

costco car insurance

Costco Auto Insurance, which is available in 34 states, is part of the company’s discount offerings called Costco Services, which also offer insurance products such as home and condo insurance, renters insurance, general, specialty insurance, life insurance, health and vision insurance, dental insurance, as well as costco business travel and payment processing.

While drivers can purchase auto insurance plans through Costco, American Family Insurance is the company that stands behind those plans. Some sites may list Ameriprise as the company behind Costco’s auto insurance, but American Family purchased Ameriprise in 2019.

american family is one of the largest auto insurance companies in the us. US, with more than 2% national market share and $5.8 billion in written premiums in 2019, according to the National Association of Insurance Commissioners.

costco benefits

Although any Costco member can obtain a policy, customers who have a higher level membership are eligible for additional benefits:

  • Roadside Assistance: If you have a Costco Executive Membership, your insurance policy will automatically include roadside assistance coverage.
  • Renewal by Life: Costco Executive Members also receive renewal for life, which means Costco will not cancel your policy for accidents or moving violations (excluding serious violations).
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costco car insurance rates

Because the cost of auto insurance differs from policyholder to policyholder, it’s hard to say how much a Costco auto insurance policy would cost you. While we can’t give you an exact number, Costco says members reported saving an average of $615.43 the first year after switching.

To help you understand what goes into pricing a policy, here are some basic factors to consider:

  • driving history
  • credit score
  • years of driving experience
  • where you live
  • your age
  • the age and mileage of your car
  • previous insurance coverage
  • your claims history

costco insurance quote

See also: Best Extended Car Warranty: Top 9 Providers (2022)

As we mentioned earlier, American Family stands behind all Costco auto insurance policies. Below, we’ve included cost estimates for American Family in every state it serves. however, you may find different rates as a costco member.

Estimated rates below apply to full coverage auto insurance for drivers 35+ with good credit and driving record.

costco auto insurance discounts

Through American Family, Costco offers these discounts to all drivers:

costco membership fee

To be eligible for costco insurance, you must be a member. When considering the cost of Costco auto insurance, it’s important to include annual membership fees.

  • gold star: $60 annual membership fee
  • gold star executive: $120 annual membership fee
  • business: $60 annual membership fee
  • business executive: $120 annual membership fee

costco auto insurance coverage

You can get all of the standard coverage options with costco auto insurance, including:

  • bodily injury and property damage liability insurance
  • collision coverage
  • comprehensive auto insurance
  • uninsured or insured driver insufficient (um/uim)
  • medical payments (medpay)
  • personal injury protection (pip)

additional coverage options

These are some add-ons that can be purchased in addition to the standard types of auto insurance:

  • New Car Replacement: If your new car is wrecked, this option will pay to replace it with the same model, rather than cover its value at the time of the accident.
  • Secured Asset Protection (Gap) Insurance: Gap insurance coverage will pay the difference between the value of your car and the amount you have left on your loan if totaled.
  • Rental car reimbursement: With this coverage, you can get reimbursed for the use of a rental car up to the amounts you specify in your policy.
  • roadside assistance: Adding this option to your costco auto insurance policy will cover towing, dead battery assistance, spare tire installation, lockout services, jump start services, and fluid deliveries .

included benefits

In addition to 24/7 insurance claim reporting by phone and online policy management, all Costco auto insurance policies come with these added benefits:

It should be noted that Costco does not offer an auto insurance app to report claims, manage your policy, or view your insurance card.

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To compare Costco’s coverage and costs with other providers, get free quotes using the tool below.

costco auto insurance customer reviews

To get an idea of ​​costco auto insurance reviews, it helps to understand the ratings of the company providing the coverage, american family insurance.

american family has a pretty good reputation. It has an ‘A’ rating from the Better Business Bureau (BBB) ​​but is not accredited. american family received an a (excellent) rating from am best, demonstrating the financial strength of the company.

If you search for remaining costco auto insurance reviews on the american family bbb page, you will find that many people are not satisfied with their service. At the time of publication, there are two five-star ratings, one four-star rating, and the rest are two or one-star ratings.

here are some sample costco car insurance reviews:

“I’m a costco member and have been with [this] insurance for over 7 years. in november 2019 my new truck hit an object in a driveway and i filed a claim through ameriprise. we got cut off quickly a check… in May 2020, [our] premium increased almost 100 percent.”

See also: A Complete List of Car Body Parts [Names & Functions] PDF

– anonymous via bbb

“what this company is doing is unethical and should be illegal. they sell you a reasonable policy at a reasonable price through costco and then change your coverage for the worse and raise your premium hoping you won’t notice or you do it”. change insurer before claiming”

See also: A Complete List of Car Body Parts [Names & Functions] PDF

– anonymous via bbb

“we have been with ameriprise costco for many years, both auto and home insurance. the auto premium has gone up and down over the years, but there hasn’t been a big change, so we kept it” .

– liu d. via bbb

according to j.d. power of 2021 usa uu. auto claims satisfaction survey, american family insurance has a better than average claims experience. after your claim is settled, you can expect your auto insurance rates to increase over the next term of your policy if you were at fault; For this reason, it might be worth repairing a small scratch outside of your insurance coverage.

costco car insurance: conclusion

In this review we go over everything there is to know about costco car insurance. we rate it a 3.5 out of 5.0, but you should still look at other providers before making a decision. Below are some of Costco’s main competitors in auto insurance.

Costco Auto Insurance Competitors: Top Picks

The great thing about shopping for auto insurance is that you can get as many free insurance quotes as you want. we recommend getting at least three, so you have a better idea of ​​what type of coverage and premiums are available to you. To connect with insurers in your area and get quotes, use the tool below.

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We’ve also done some research on the best providers for you. Any of the following companies would be great to check out, as they are all at the top of our auto insurance rankings. Plus, they all offer affordable rideshare coverage.

usaa: best for military

usaa is the best overall choice if you are a member of the military, part of a military family, or a veteran. usaa customers can find some of the cheapest rates in the industry. In addition, they have access to first-rate customer service and a series of discounts. in our review, usaa was the only provider we rated 4.8 out of 5.0 stars. read more in our usa auto insurance review. uu.

geico: best overall

geico ranked second in our auto insurance rankings. We believe it’s the best option if you’re not eligible for USAA, and it also offers many drivers great insurance rates. for that and for its excellent customer service, we rate the company 4.6 out of 5.0 stars. Read more in our Geico auto insurance review.

progressive: best for high-risk drivers

progressive is our third choice for auto insurance, also earning 4.6 out of 5.0 stars. Progressive has a great usage-based option through its Snapshot® app, and its General Insurance app is easy to use for managing your account and submitting claims. Read more in our progressive auto insurance review.

methodology

In an effort to provide accurate and unbiased information to consumers, our expert review team compiles data from dozens of auto insurance providers to formulate rankings of the best insurers. companies receive a score in each of the following categories, as well as an overall weighted score of 5.0 stars.

  • Industry Reputation: Insurers with strong financial ratings and customer-centric business practices receive the highest scores in this category.
  • Availability: We consider availability by state, as well as exclusions for specific groups of drivers.
  • Coverage: This rating is based on the types of insurance available, the maximum coverage limits and policy add-ons.
  • cost and discounts: our research team reviews sample quotes for a variety of drivers in each state. Companies with the lowest prices and many discount opportunities on auto insurance receive the highest scores.
  • Customer Service: We analyzed customer reviews and feedback studies from expert consumers like j.d. power.
  • technology: Auto insurers with mobile apps, advanced online services, and telematics are more likely to meet consumer needs.

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