Costco car insurance is sold through CONNECT, powered by American Family Insurance, and you need an active Costco membership to get a quote. The process starts online at Costco’s insurance page or by phone, and most members can have a policy in place the same day. Here’s what to know before you start.
What Costco Car Insurance Actually Is
Costco doesn’t underwrite car insurance itself. Instead, it partners with American Family Insurance, which sells policies under the CONNECT brand exclusively to Costco members. Costco Insurance Agency acts as the middleman, and your actual policy is issued and managed by American Family. This matters because when you file a claim or call for service, you’re dealing with American Family’s network, not Costco.
Availability varies by state, and not every member can get a policy. Costco Insurance Agency is not licensed in New York, so members there can’t buy through this program at all. In Florida, Costco pricing is only available on certain auto policies. Some discounts are also restricted by state and membership tier.
Membership Requirements
Any active Costco membership qualifies you to request a quote: Gold Star, Business, or Executive. However, the membership tier you hold affects the benefits and discounts attached to your policy.
Executive Members get extras that lower-tier members don’t, including roadside assistance and lifetime renewability (meaning the insurer can’t drop you as long as you keep paying). These perks alone can justify the higher Executive membership fee if you’re planning to use Costco for insurance. In some states, the member discount itself is restricted by tier. Non-Executive Members in Massachusetts, for example, aren’t eligible for the Costco member discount on auto insurance.
How to Get a Quote
Start at the auto insurance page on Costco’s website. You’ll be redirected to the CONNECT by American Family platform, where you’ll log in with your Costco membership credentials. You can also call Costco’s insurance line directly if you prefer to work with an agent over the phone.
To complete a quote, you’ll typically need:
- Your Costco membership number
- Driver’s license numbers for everyone in your household who drives
- Vehicle information including year, make, model, and VIN
- Your address and where you park overnight
- Driving history for the past three to five years, including accidents and violations
The online quote process takes about 15 to 20 minutes if you have everything ready. Once you review the quote and choose your coverage levels, you can bind the policy and get proof of insurance right away.
Discounts That Lower Your Premium
CONNECT offers a solid range of discounts, and stacking several of them can meaningfully reduce your rate. Here are the main categories.
Safety Discounts
The Premier Safety discount is the most valuable: if every driver on your policy has had zero traffic violations, accidents, or claims for the past four years, you qualify. Beyond driving records, your vehicle’s features matter too. Anti-lock brakes, airbags, automatic seatbelts, and anti-theft devices can each earn a small discount. If you park your car in a garage overnight, the garaging discount may apply as well, though availability is limited.
Completing a state-approved defensive driving course can also earn a discount. You’ll need to submit your certificate of completion. Note that basic driver’s education classes taken while learning to drive don’t count.
Student Discounts
Full-time students with strong grades may qualify for a good student discount. If your student attends school more than 100 miles from home and doesn’t have a car on campus, the Student Away discount lets you keep them on your policy at a reduced rate. They’re still covered when they come home for breaks or weekends.
Bundling Discounts
Buying your homeowners or condo insurance through CONNECT alongside your auto policy earns a multi-product discount. Adding an umbrella policy on top of that increases the discount further. If you’re already a Costco member shopping for multiple insurance products, bundling is one of the easiest ways to save.
Tenure Discount
The longer you stay with American Family, the less you pay relative to a new customer. This discount kicks in automatically at certain milestones, so your rate can gradually improve just by sticking with the policy.
What to Know Before You Buy
Your Costco membership must stay active for the insurance benefits and member pricing to remain in effect. If you cancel your Costco membership or let it lapse, you could lose the member discount and any Executive-level perks like roadside assistance.
Coverage options, pricing, and available discounts differ by state, sometimes significantly. The quote you receive will reflect your specific location, driving history, and vehicle. It’s worth comparing the CONNECT quote against two or three other insurers before committing, since Costco’s group buying power doesn’t guarantee the lowest rate for every driver profile.
If you’re in New York, you’ll need to shop elsewhere entirely since Costco’s insurance agency isn’t licensed there. Members in Florida and a handful of other states may find that certain products or discounts are limited or unavailable.
Managing Your Policy After Purchase
Once your policy is active, you manage it through CONNECT’s online portal or by phone with American Family representatives. You can update vehicles, add or remove drivers, adjust coverage limits, and file claims through the same account. Payments are handled directly by American Family, not through your Costco membership billing.
If you need to make a claim, the process follows American Family’s standard claims workflow. You’ll contact their claims department, provide details about the incident, and work with an adjuster. Your Costco membership number ties your account to the member pricing, but the claims experience itself is the same as any other American Family policyholder.