September 28, 2022

RTC

Safe Travel USA

Connect Insurance From Costco: Costs and Coverage (2022)

*Ratings are determined by our editorial review team. Learn more about our scoring methodology below.

People often join the nation’s largest warehouse club looking for deals — whether on toilet paper, vitamins or international travel. With Connect Insurance from Costco, members also gain access to an affordable option for car insurance.

We at the Home Media reviews team wanted to see how Connect Insurance from Costco compares to the best car insurance companies. Our team carefully looked at Connect, which is offered through American Family Insurance, to find its costs, coverage and customer reviews. We found that Connect Insurance from Costco offers affordable rates and decent protection.

About Connect Insurance From Costco

Costco Wholesale doesn’t actually offer auto insurance directly, so its plans are administered by American Family. The company is one of the largest car insurers in the United States, and it holds a relatively strong reputation.

As with the retailer’s merchandise, Connect Insurance from Costco is available to members at a discounted rate. Costco members may find reduced prices for coverage that is similar to what American Family carries, though that’s not always the case.

It’s smart to compare your new car insurance rate with prices from multiple providers before making a final call. That’s because Connect Insurance from Costco isn’t always the cheapest option, despite the company’s reputation.

Connect Insurance Availability

American Family, commonly known as AmFam, uses the Connect brand name to sell insurance products in most states. Connect Insurance from Costco isn’t available in the following locations:

  • Alaska
  • Louisiana
  • Maine
  • North Dakota
  • Rhode Island
  • Wyoming

Get car insurance quotes from other providers to find the most cost-effective coverage policies, even if you live in a state where Connect Insurance from Costco is offered.

Connect Insurance From Costco Pricing and Discounts

Costco is known for low prices on just about everything, and that’s no different when it comes to Connect Insurance. Our rate estimates for American Family, the insurance administrator, come out to an average of $1,505 per year for full coverage car insurance. That’s significantly below the average estimate across the nation, which is $1,732 annually.

Your rates will likely vary from the numbers given above. Also keep in mind that Costco members may find even lower rates with Connect Insurance than they would with American Family itself.

Factors that Affect Car Insurance Costs

Connect Insurance from Costco bases your premiums on a few personal factors and vehicle details. The most significant elements include:

  • Coverage types: You can find cheap car insurance by sticking with a state minimum liability policy. Additional coverage types such as collision and comprehensive insurance offer more financial protection but come at a higher cost.
  • Coverage limits: The amount of protection you purchase also affects your rates. Typically, steeper premiums come with higher coverage limits.
  • Deductible: You get to pick your auto policy’s deductible, or out-of-pocket limit. A higher deductible will get you lower rates, but you’ll pay more for each repair.
  • Driving record: A clean driving record will give you lower rates, while accidents or traffic violations on your record will drive your premiums up.
  • Age: Younger motorists, especially teen drivers, pay higher rates than other age groups. Older adults typically pay more than middle-aged drivers as well.
  • Credit score: In states where car insurers use credit scores as a factor in premiums, drivers with lower scores can expect to pay higher rates.
  • Location: Rates vary between states due to differences in coverage requirements and other factors. Rates also vary within states, as drivers in rural areas usually pay less for coverage than those in cities.
  • Vehicle: The make, model, condition, mileage and age of your vehicle all factor into how much you pay for auto coverage.

Factors that affect car insurance rates

Connect Insurance From Costco Discounts

Connect Insurance from Costco offers several potential savings that can help members find cost-effective coverage. Below are the main car insurance discounts you could receive:

Connect Insurance From Costco Coverage

Like with American Family, drivers who choose Connect Insurance from Costco receive standard coverage and have a few additional options. The standard coverages offered by Connect include the following:

  • Bodily injury liability insurance: Covers the medical treatments and lost wages of other parties in an accident you cause
  • Property damage liability insurance: Takes care of damages to other vehicles and property after an accident you cause
  • Medical payments coverage (MedPay): Handles you and your passengers’ medical expenses regardless of who caused the accident
  • Personal injury protection (PIP): Covers you and your passengers’ medical expenses and lost wages, regardless of who is at fault for an accident
  • Uninsured motorist coverage/underinsured motorist coverage (UM/UIM): Takes care of accident-related costs if the at-fault driver doesn’t have sufficient coverage
  • Collision insurance: Covers damages to your vehicle regardless of who is at fault for an accident
  • Comprehensive insurance: Covers damages to your vehicle that aren’t caused by an accident, such as issues due to floods, hail or vandalism

Additional Coverage Options From Connect Insurance

There are very few policy add-ons available through Connect Insurance from Costco. The choices that are available include the following:

Rental car reimbursement: Covers the cost of a rental car while your car is being repaired or replaced
Gap insurance: Covers some or all of the difference between what you owe on a vehicle and what it’s worth after a total loss incident

Connect Insurance From Costco Benefits

Connect Insurance from Costco policies include a few perks that come standard for members. These include the benefits outlined below:

  • Roadside assistance: This covers emergency roadside services like towing, flat-tire help, fuel delivery and lockout assistance. It’s available free of charge to all Costco Executive members who carry a Connect car insurance policy.
  • Glass repair deductible waiver: Connect Insurance from Costco covers damaged windshields as long as they can be repaired rather than replaced.
  • Accident travel expense coverage: This takes care of lodging and travel expenses if you’re involved in an accident more than 100 miles from home.
  • Lifetime renewability: Most Costco Executive members will be able to always renew their auto insurance policies from Connect Insurance, even after accidents occur.

You’ll also receive stolen key coverage if comprehensive insurance is part of your policy. These Costco car insurance benefits are intended for members who carry applicable coverage.

Connect Insurance From Costco Reviews

Connect Insurance from Costco holds an A+ rating and accreditation from the Better Business Bureau (BBB). However, policyholders on the site give it an average of 1.1 out of 5.0 stars, though this is based on fewer than 100 reviews. Common issues include having coverage denied, getting policies canceled and struggling with the company’s claims process.

On the other hand, California drivers ranked Connect Insurance from Costco as the second-best provider in the Golden State in the J.D. Power 2021 U.S. Auto Insurance Study℠.

It’s difficult to know exactly how drivers feel about Costco insurance policies, as they receive few reviews online. There’s also little data available from the National Association of Insurance Commissioners (NAIC). The company’s high number of closed complaints on the BBB website — 32 in the last 12 months — doesn’t speak positively about its customer service standards, though.

Our team reached out to Connect Insurance from Costco for a comment on its negative customer reviews but did not receive a response.

Bottom Line on Connect Insurance From Costco

We give Connect Insurance from Costco 8.2 stars out of 10.0. Connect offers what those with Costco memberships have come to expect: competitive prices on quality products with few frills. The company doesn’t offer many add-ons or additional coverages, but it has affordable rates.

Connect comes with the benefit of being backed by American Family, one of the country’s largest auto insurance companies. That means those affordable rates combine with the financial strength of a well-established provider. For current Costo members who want basic car coverage, Connect Insurance is certainly worth a look.

Other Types of Insurance Offered

Bundling policies is an easy way to save money on car insurance. Those who want to bundle insurance products may be interested in what options are available with Connect Insurance from Costco. Below are your choices:

Other Options for Car Insurance

Even if Connect Insurance from Costco seems like the right provider for you, we advise getting car insurance quotes from multiple companies. That way, you can compare actual rates instead of just car insurance estimates. We recommend starting your search with Geico and Progressive.

Geico: Editor’s Choice

In our study of the top insurance providers, Geico earned the award for Editor’s Choice. That’s because of the company’s affordable rates for drivers in various categories across the entire country.

Geico also offers a wide selection of coverage options and helpful add-ons, such as rideshare insurance and mechanical breakdown insurance (MBI). With a large number of discounts to choose from, most drivers can lower their rates from Geico even further.

Keep reading: Geico insurance review

Progressive: Low Rates for High-Risk Drivers

Progressive offers plenty of coverage options and generally affordable rates for drivers in multiple categories. The Name Your Price® tool is a unique feature that allows motorists to start from their budget and work backward to find coverage that fits.

This provider shines brightest when covering those with less-than-stellar driving records. Progressive has long specialized in taking care of drivers with violations like speeding tickets, accidents and DUIs on their driving histories.

Keep reading: Progressive insurance reviews

Our Methodology

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

Here are the factors our ratings take into account:

  • Cost (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
  • Coverage (30% of total score): Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
  • Reputation (15% of total score): Our research team considered market share, ratings from industry experts and years in business when giving this score.
  • Availability (10% of total score): Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
  • Customer Experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.

*Data accurate at time of publication.