Costco members have access to auto insurance through a third-party insurance arrangement with American Family Insurance. The program provides eligible Costco members with access to personalized auto insurance quotes and a member discount on qualifying policies. Costco states that members may receive an exclusive discount when switching auto insurance, while additional savings may apply depending on individual circumstances.
Costco's auto insurance arrangement allows members to obtain personalized insurance quotes through American Family Insurance.
Rather than having one fixed Costco insurance rate for every driver, the premium is determined using information relevant to the insurance policy.
Factors can include:
Costco membership can provide access to a member discount on qualifying policies, but the discount does not mean that every Costco member receives the same final premium.
An insurance quote should therefore be evaluated based on the complete policy price and coverage rather than the membership discount alone.
Costco continues to list auto and home insurance among its member services in 2026.
The current Costco insurance information states that members may receive an exclusive discount on auto and home insurance when switching. Additional discounts can also apply, including savings associated with safe driving or bundling auto and home insurance.
Availability and policy terms vary by state.
Costco's current disclosures specifically identify state-level restrictions affecting eligibility for certain member discounts. For example, Costco states that its member discount is subject to eligibility and underwriting criteria and that certain restrictions apply in Florida, Tennessee, Massachusetts, and other circumstances.
This means a Costco membership does not automatically guarantee eligibility for the advertised discount in every state.
The primary benefit associated with the program is a Costco member discount on qualifying auto insurance policies.
Costco describes the discount as an exclusive member benefit.
The actual amount of savings depends on the applicable policy, state, underwriting company, eligibility requirements, and other factors.
Insurance discounts can also interact with other pricing factors.
For example, a driver with a clean driving history may qualify for a safe-driving discount in addition to a Costco member discount, depending on eligibility.
A household that insures both vehicles and a home through the applicable program may also qualify for a bundling discount.
Costco has two primary consumer membership levels: Gold Star and Executive.
Executive Members receive additional benefits through certain Costco Services. Costco's current information states that Executive Member benefits for auto and home insurance can vary according to state, policy, underwriting company, and other conditions.
The Executive membership does not mean that every auto insurance policy receives an identical additional discount.
Instead, the benefits depend on the policy and applicable state rules.
This makes it important to compare the complete premium rather than assuming that an Executive Membership automatically produces a particular percentage reduction.
Safe driving can affect insurance pricing.
Costco's current insurance information states that members could receive additional discounts for safe driving.
Insurance companies generally evaluate driving history and other underwriting factors when determining premiums.
A clean driving record may result in lower premiums compared with a history involving accidents or violations, although the exact impact varies according to the insurer and state.
Safe-driving programs can also involve additional eligibility requirements.
Costco's insurance program also allows qualifying customers to consider bundling auto and home insurance.
Bundling means obtaining multiple insurance policies through the same insurance provider.
Costco states that members can save more by bundling car and home insurance, subject to the applicable terms.
A bundled policy can simplify billing and may reduce the combined premium.
However, bundling does not automatically produce the lowest total cost.
Separate quotes from multiple insurers can provide a useful comparison.
An insurance quote is based on the details provided during the quotation process.
The final policy can include several coverage categories.
Common auto insurance coverage types include:
Not every coverage type is required in every state.
State law determines minimum liability requirements, while lenders can impose additional requirements for financed or leased vehicles.
Liability insurance generally helps pay for injuries or property damage caused to another party when the insured driver is legally responsible.
Bodily injury liability can help cover qualifying medical expenses and other damages resulting from injuries to another person.
Property damage liability can help cover qualifying damage to another person's vehicle or property.