Costco Auto Insurance Review: Quotes and Service (2024)

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Updated: December 28, 2023

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checkmarkOffers several add-on coverages such as rental car reimbursement, gap insurance, accident forgiveness and roadside assistance
checkmarkAlso offers OEM as an add-on coverage, which helps ensure aftermarket parts will not be used when your vehicle is repaired
checkmarkOffers most commonly available discounts plus several not typically offered, such as new customer, low mileage and loyalty discounts, plus a volunteer discount for drivers 25 and under


closeDoes not provide add-on coverages for new car or better car replacement or deductible modification
closeDoes not provide a discount for anti-theft system


Costo insurance premiums are moderately priced, and the company offers a number of discounts so you can save even more. Its MoneyGeek scores for discounts and financial stability are above average and are average in terms of complaint resolutions and customer satisfaction.

MoneyGeek evaluated the best car insurance providers across the U.S. along with the cheapest car insurance companies. This can help you compare the insurance policies offered by Costco and other insurance companies. You can also use our tool for comparing Costco’s insurance policies, costs and coverages with other insurers.

How Does Costco Rank for Customer Service?

In MoneyGeek’s list of the best car insurance companies, Costco’s underwriter, American Family, ranks fifth with a score of 84 out of 100. For these rankings, MoneyGeek considered ratings and reviews from industry sources such as J.D. Power, AM Best and the NAIC (National Association of Insurance Commissioners).

Customer Satisfaction Rating

First Notice of Loss:
Estimation of Process:
Repair Process:
Claims Servicing:
Rental Experience:

Based on data provided by J.D. Power, American Family earns a customer satisfaction score of 820 out of 1,000 total points. The industry average is 835, so American Family's rating in this area is a bit worse than the typical insurer. J.D. Power's data also informed these star ratings, which show you how American Family performs in several specific categories.

Customer Complaint Ratio

American Family gets a score of 3.12 in NAIC’s customer complaint ratio. The national median is 1.00, indicating the average number of complaints for insurance companies. Thus, American Family’s score shows that the company gets more than three times as many complaints as the typical insurer.

Costco Auto Insurance Quotes: How Much Does it Cost?

MoneyGeek calculated affordability scores based on data from a J.D. Power survey and found that Costco is moderately priced compared to other insurers.

To see how much a car insurance policy would cost for you, it’s a good idea to get several personalized quotes for comparison. Unless you are shopping only for the cheapest car insurance policy, you should consider factors such as coverages and discounts, customer satisfaction and complaints, and other variables apart from pricing.

Is Costco Car Insurance Expensive or Cheap? Why?

Costco is a moderately-priced car insurance company for our sample driver.

Insurance companies are not transparent about how they calculate their rates for car insurance policies. Generally, however, all insurers tend to charge higher premiums based on certain factors, including your age, driving history and where you live.

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Discounts Offered by Costco That Can Help You Save

Costco offers multiple discounts, including most common ones like bundling, safe driving, defensive driving, multiple cars, pay-in-full, defensive driving, good student and airbag discounts. Unlike most other insurers, however, it does not offer the anti-theft system discount.

Still, Costco does offer a number of unique discounts not typically offered by most car insurers. Among others, these include a low mileage discount for policyholders who drive less than 7,500 miles per year, new customer and automatic payment discounts, as well as a volunteer discount for drivers under the age of 25.

Car Insurance Comparison Tool

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Note: The cost of car insurance is highly personalized and varies from driver to driver. Auto insurance companies weigh several factors when considering your rate, including age, driving record, address, the type of car you drive and more. The MoneyGeek calculator estimates how much you could pay for car insurance, without entering your personal information. The estimator can help you decide if it's time to switch car insurance companies or find a provider that fits your needs and budget.

Does Costco Offer Broad or Unique Coverage?

Like all other auto insurers in the U.S., Costco provides standard coverages, which include comprehensive, liability and collision insurance coverages.

You can also buy add-on coverages from Costco, including rental car reimbursement, gap insurance, accident forgiveness and roadside assistance.

Costco also gives you the option to add original equipment manufacturer (OEM) coverage to your car insurance policy. This additional coverage, which is not widely offered, ensures aftermarket parts will not be used when repairs are made to your vehicle.

What Online Auto Insurance Tools Does Costco Offer?

American Family offers comprehensive auto insurance coverage and multiple discounts. You can shop for car insurance by comparing quotes from several providers to get the cheapest rates for your needs.

  • Type of Feature
  • Online Price Quotes
    You can get a custom quote for your auto insurance needs.
  • Online Bill Pay
    You can pay your bills through the online account portal or mobile app.
  • Online Claims
    Use your desktop PC or mobile phone to file claims online.
  • Payment Options
    American Family offers a range of convenient payment options.
  • Mobile App
    Use the MyAmFam app to view documents, file a claim and pay your bills.

Other Costco Insurance Products

Apart from auto insurance, American Family also offers homeowners, renters, umbrella, condo, landlord, life, business, agricultural, classic car, health, identity theft, travel and motorcycle insurance. Check to see if bundling multiple policies can help you save money.

  • Type of Product
  • Homeowners Insurance
    Homeowners insurance includes personal property, dwelling, medical and liability coverage.
  • Renters Insurance
    Renters insurance covers your belongings and includes liability coverage for lawsuits and medical bills.
  • Condo Insurance
    This coverage protects your valuables and shields you from liability in your condominium.
  • Life Insurance
    This form of insurance pays the coverage amount to the family if the policyholder passes away.
  • Umbrella Insurance
    You can get extra protection for your existing policies, like home or car insurance.

Financial Strength

American Family gets an “A” rating from AM Best for its financial strength and ability to meet its insurance obligations. This is AM Best’s third-highest rating behind only A++ and A+. You should not consider this opinion to be a warranty of a provider’s financial strength, but it is an excellent indicator of whether you can trust a company to pay legitimate claims.

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

How to Make a Car Insurance Claim With Costco

You can file a claim online, via the MyAmFam app or over the phone. The app might be your best bet, as it allows you to rent a car, find local repair shops and submit images of vehicle damages.

Contact Costco Car Insurance

Methodology and Assumptions

To evaluate and review auto insurance companies, MoneyGeek carefully weighs factors such as price, financial strength, policy features, customer satisfaction, service and other leading indicators. MoneyGeek also references publicly available data from industry leaders such as J.D. Power, AM Best, the National Association of Insurance Commissioners (NAIC) and the Better Business Bureau. Learn more about MoneyGeek’s review methodology here.

About Mark Fitzpatrick

Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.