Costco is offering auto insurance deals for members in 2026 through its long-running partnership with American Family Insurance, but the savings depend on your state, driving record, and membership tier. Here is how the program works, what it covers, who benefits most, and how to check whether it actually beats your current rate.
Headlines make it sound like a fresh promotion, but the program has been around for years under various branding iterations. You may also see it called Costco Connect, since American Family Insurance is in the process of absorbing the Connect branding into its own. Either way, the offer is the same idea: a member-only discount on car insurance. joingeraldjalopnik
Not Costco. Costco doesn’t underwrite the policies itself. Instead, the car insurance you get through Costco is issued and underwritten by American Family Insurance, and claims are handled by American Family. Costco acts as the distributor, offering members access to policies at negotiated rates. Gerald Wallet Home +3
You also need an active membership. Only active Costco members can purchase and maintain a policy through the program. That means if you let your membership lapse, you may lose access to the discount and the program. joingerald
A member discount. Costco members receive a discount on auto and home insurance policies in most states. One reviewer notes that merely switching to the program from another insurer can unlock it, since discounts are available just for being a Costco member. nerdwalletjalopnik
Bundling savings. The program also sells home and condo coverage, and bundling your auto and home policies can yield additional discounts. Other discounts mentioned include bundling with home or umbrella insurance and keeping continuous coverage with American Family. joingeraldnerdwallet
Executive Member perks. This is where the program stands out. Guaranteed lifetime renewability and roadside assistance are included for auto policies bought through Costco as an Executive Member. Lifetime renewability is a rare promise. Roadside help covers common problems such as flat tires or jumpstarts. One review lists the Executive Membership at $130 a year as of 2026, so weigh that cost against the perks. Costco Car Insurance Review 2026 +2
The basics are standard. The program covers liability, collision, coverage for damage beyond collision, uninsured motorist, and medical payments. You can also add roadside assistance, available to some members, and rental car reimbursement. joingeraldnerdwallet
The coverage is also simpler than some competitors. One review calls it more bare-bones than what you’d get from insurers like The Hartford or Farmers. Another notes the program has few optional types of car insurance. If you want extras such as accident forgiveness or gap coverage, ask specifically what is available in your state. wasmernerdwallet
Often, but not always. One report says Costco’s annual premiums were between $50 and $400 cheaper than the other insurers evaluated, and more than 500,000 members have taken up the offer. A CNBC Select review says members with clean driving records and good credit often find competitive rates. Costco Offers Auto Insurance To Its Members, But Are There Any Perks? +2
But there are warnings too. The same report notes Costco couldn’t crack the top 15 on Consumer Reports’ list of best car insurance companies. A user-sentiment roundup says readers rate the program favorably for initial value but flag unpredictable renewal pricing as a concern. And a NerdWallet review points to more than the expected number of complaints to state regulators for auto insurance. Costco Offers Auto Insurance To Its Members, But Are There Any Perks? +2
The takeaway: a low first-year quote is not the whole story. Ask what happens to your rate at renewal.
Costco’s auto insurance deal is real, but it’s a membership perk delivered by American Family, not a mysterious new Costco insurance product. It can save money for members with clean records, especially Executive Members who value lifetime renewability and roadside help. But the coverage is basic, complaints are above average according to one review, and renewal pricing can change. The smart move is to get a quote, compare it line by line with competitors, and choose the policy that offers the best coverage for your actual risk.