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Does Costco Do Car Insurance? A Deep Dive for Savvy Shoppers

Yes, Costco does offer car insurance, but not in the way you might initially think. They don’t directly underwrite insurance policies. Instead, Costco partners with CONNECT, powered by American Family Insurance, to provide Costco members with car insurance. This partnership allows Costco to offer potentially lower rates and exclusive benefits on auto insurance to its members. Let’s unpack exactly how this works and whether it’s the right choice for you.

Unveiling the Costco Car Insurance Program: CONNECT

How Does CONNECT Work Through Costco?

CONNECT, as facilitated through Costco, isn’t your typical insurance brokerage. It’s a strategic alliance. Think of Costco as the vetting agent, meticulously selecting a partner – American Family Insurance – to deliver insurance products. This arrangement leverages Costco’s immense buying power and member loyalty to negotiate potentially favorable rates.

When you, as a Costco member, request a car insurance quote through Costco, you’re actually being connected to CONNECT, which then processes your information and generates a quote underwritten by American Family Insurance. You’re essentially getting American Family Insurance, but with the potential for additional Costco-exclusive perks.

What are the Potential Benefits of Getting Car Insurance Through Costco?

Several appealing benefits may entice you to consider car insurance through Costco:

Potential Savings: This is the primary draw. Costco’s negotiation power allows CONNECT to offer potentially lower rates than you might find elsewhere. This is due to the large pool of drivers they can access through Costco membership.
Exclusive Costco Member Benefits: These often include enhanced coverage options, discounts on deductibles, and other perks not typically offered to non-Costco members.
Reliability of American Family Insurance: American Family Insurance is a reputable and established insurer with a solid financial rating, providing peace of mind.
Convenience: Getting a quote is easy, often done online or over the phone through CONNECT’s platform accessible via the Costco website.
Solid Customer Service: While the policy is managed by CONNECT, it benefits from the backing of American Family Insurance’s well-established customer service infrastructure.

The Fine Print: What to Consider Before Signing Up

While the benefits are compelling, a savvy shopper always reads the fine print:

Membership Requirement: You absolutely must be a Costco member to access these insurance benefits. Without a membership, you are ineligible.
Not Always the Cheapest: Despite the potential for savings, it’s crucial to compare quotes from multiple providers. CONNECT, while competitive, might not always offer the absolute lowest rate for your specific circumstances. Factors like your driving history, location, and the type of car you drive significantly influence premiums.
Limited Underwriting: CONNECT is underwritten by American Family Insurance, meaning your options are constrained to what American Family offers.
Coverage Variations: Coverage offerings might differ slightly from what’s directly available through American Family Insurance. Pay close attention to the policy details to understand exactly what you are covered for.
Rate Fluctuations: Even if you find a great rate initially, it’s crucial to understand that insurance premiums can fluctuate from year to year due to a multitude of market-related factors.

Is Costco Car Insurance Right For You?

The million-dollar question! There’s no one-size-fits-all answer. To determine if Costco car insurance via CONNECT is the right choice, consider the following:

Are you already a Costco member? If not, the cost of membership needs to be factored into your overall savings calculation.
Are you a safe driver with a clean record? Those with excellent driving records typically receive the most significant discounts.
Are you comfortable comparing quotes? Always get quotes from multiple providers to ensure you’re getting the best possible rate and coverage.
Do you value customer service? Research reviews of CONNECT and American Family Insurance to gauge their customer service reputation.
What are your specific coverage needs? Ensure the policy offered through CONNECT meets your individual requirements.

Frequently Asked Questions (FAQs) about Costco Car Insurance

1. What Types of Car Insurance Coverage are Available Through Costco (CONNECT)?

CONNECT typically offers a full suite of auto insurance coverages, including liability, collision, comprehensive, uninsured/underinsured motorist, and personal injury protection (PIP), depending on your state’s requirements and your chosen policy. Specific coverages and limits can be tailored to your needs and budget.

2. Does Having a Costco Executive Membership Affect My Car Insurance Rates?

While a Costco Executive Membership doesn’t directly impact your car insurance rates, it might unlock access to additional exclusive benefits or discounts offered through CONNECT. It’s always worth clarifying with a CONNECT representative if your Executive Membership provides any further advantages.

3. How Do I Get a Car Insurance Quote Through Costco?

You can obtain a quote online through the Costco website by navigating to the insurance section. You’ll be directed to CONNECT’s platform, where you’ll provide information about your vehicle, driving history, and coverage preferences. Alternatively, you can call CONNECT directly to speak with a representative.

4. Can I Bundle My Home and Auto Insurance for Additional Savings with Costco?

Yes, you can typically bundle your home and auto insurance policies through CONNECT for potential discounts. This is a common practice among insurance providers, and CONNECT/American Family Insurance is no exception.

5. What Happens If I Cancel My Costco Membership After Getting Car Insurance?

Cancelling your Costco membership could impact your eligibility for the insurance policy through CONNECT. It’s likely your rates will increase to standard American Family Insurance rates, or potentially, your policy may be canceled. Contact CONNECT directly to understand the specific consequences of cancelling your Costco membership on your insurance policy.

6. Does Costco (CONNECT) Offer Discounts for Safe Driving or Other Factors?

Yes, CONNECT typically offers various discounts, including those for safe driving records, multiple vehicles, anti-theft devices, and good student discounts. The availability of these discounts may vary based on your location and individual circumstances.

7. How Does Costco (CONNECT) Handle Claims?

Claims are handled directly through American Family Insurance. You can file a claim online, through their mobile app, or by contacting their customer service hotline. The claims process is generally the same as if you were a direct American Family Insurance customer.

8. Can I Get Car Insurance Through Costco If I Have a DUI/DWI on My Record?

Getting car insurance with a DUI/DWI on your record is challenging, regardless of the provider. While CONNECT may still offer coverage, expect significantly higher premiums. It’s crucial to be upfront about your driving history when obtaining a quote.

9. Is Costco Car Insurance Available in All States?

While CONNECT aims to be widely available, coverage may not be offered in all states. It’s best to check directly with CONNECT or on the Costco website to confirm availability in your specific location.

10. How Does CONNECT Compare to Other Insurance Providers?

The best way to compare CONNECT to other insurance providers is to obtain multiple quotes and carefully evaluate the coverage options, deductibles, and premiums. Consider factors like customer service ratings, financial stability, and claims processing efficiency.

11. Are There Any Hidden Fees Associated With Costco Car Insurance?

Transparency is key. There are typically no hidden fees associated with Costco car insurance through CONNECT. However, always carefully review the policy documents to understand all costs and potential charges.

12. How Often Should I Re-Evaluate My Car Insurance Policy Through Costco (CONNECT)?

It’s generally a good practice to re-evaluate your car insurance policy annually or whenever significant life changes occur (e.g., moving, buying a new car, changes in driving habits). This ensures your coverage remains adequate and that you’re still receiving the best possible rates.