Costco is a large wholesale corporation that has at least one store worldwide and sells almost everything food, toys, office supplies…., and insurance.
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Costco Auto Insurance Reviews
Costco insures homes and cars, but we’re going to focus on Costco auto insurance.
About Costco
Costco Wholesale Corporation, commonly known as Costco, is an American multinational corporation that manages a chain of membership-only big-box retail stores.
Big-box stores are large stores that are a part of chain stores like Target or Walmart, but unlike them, Costco is a membership-only store which means only people who bought Costco membership can shop there.
It was founded in 1976, and it’s Headquartered in Issaquah, Washington. With 46 years of service, Costco has accomplished 804 chain stores across the US and held the honor of being the fifth largest retailer in the world in 2020.
Costco Auto Program
Costco Auto Program Approved Dealerships sold about 700,000 vehicles to Costco members in 2020. Costco Auto Program teamed up with various automobile manufacturers to offer special deals to its customers, manufacturers like Chevrolet, Cadillac, Audi, Mercedes Benz, Honda, and many more.
According to MSN research, Costco members saved an average of $1,100 – $1,200 off the transaction price.
The Costco Auto Program webpage is user-friendly; on this page, you can see and compare available vehicles, calculate monthly payments, and read reviews, or you can call the Costco customer service line to walk you through your options.
Your contact info and Costco membership number allow you to buy or lease the vehicle with the Costco discount. Costco offers its members a 15% discount on parts, service, and accessories at participating service centers.
About Costco auto insurance
Costco sells auto insurance to its members, but Costco itself doesn’t provide the insurance; instead, Costco has an agreement with CONNECT, a division of American Family Insurance, for auto insurance, home insurance, and umbrella insurance, in 2019.
Drivers that purchase their car insurance through Costco can be eligible for a discount off American Family’s rates, which are already affordable.
But it must be mentioned that Costco isn’t the perfect choice for consumers who want to customize their policy, and American Family has poor customer service.
Coverages
Costco members who purchase a policy from CONNECT get a basic auto coverage which includes:
- Liability Coverage
- Collision Coverage
- Comprehensive Coverage
- Medical Payments Coverage
- Uninsured/Underinsured Motorist Coverage
Optional coverages include:
- Rental Car Insurance
- Personal Injury Protection (PIP)
- Gap Insurance & Roadside Assistance
Costco Executive members may receive additional perks by signing up for CONNECT, which are:
- Roadside assistance: Members that purchase add this coverage to their policy get vehicle repairs and towing services.
- Lifetime renewability: Lifetime renewability is available for Costco executive members regardless of how many accidents, tickets, etc., they had.
- Accident travel expense coverage: It covers hotel and food expenses if they get into an accident or their car breaks down while traveling away from home.
- Glass repair deductible waiver: With this coverage, Costco Executive members’ windshields can be repaired rather than replaced with no deductible.
Discounts & Benefits
Costco members receive a few perks if they purchase a policy.
- Free roadside assistance.
- Option of renewing your policy regardless of how many accidents, tickets, and traffic violations you had.
- Members may be eligible to get a $100 Costco gift card when they sign up for a new policy and some other gift cards and discounts.
American Family offers customers who purchase auto insurance through Costco benefits and discounts too. The discounts available includes:
- Safe Driving Discount: Drivers with a clean driving record (three or more years of driving without causing an accident) are eligible for discounts. American Family provides several discounts for taking a defensive driving course.
- Safety Feature Discount: Cars safety like airbags and anti-theft features such as alarms will receive a discount.
- Longevity Discount: Loyal Customers will get a discount after three years’ worth of continuous coverage from the American Family.
- Bundling Discount: If you purchase more than one insurance policy from American Family will be eligible for a discount, whether it’s for multiple cars or bundling your auto, home, and life insurance together.
- Students Discount: American Family lower their rates if you or someone in your family has completed four years of postsecondary education. If you’re a full-time student under 25 with a “B” grade average or better, you are eligible for a discount.
- Student away at school discount: American Family will also reduce the rates for families with a student living more than 100 miles from home who doesn’t have a car.
OTHER DISCOUNTS
- Premier safety discount
- Defensive driver discount
- Garaging discount
- Education discount
- Multi-product discount
- Tenure discount
A review of Costco
FINANCIAL STRENGTH: A rating
BBB RATING: A+ rating
COVERAGES: 4/5
FLEXIBILITY: No policy customization.
DISCOUNTS: 4/5
SUPPORT: Phone, E-mail, Fax.
USER RATINGS: NAIC 1.79 (above average complaints).
AVAILABILITY: Not available in all states.
PRICING: Good value for money.
Pros:
- Multiple Policy Discounts
Costco offers several discounts to members based on their good driving habits, loyalty, vehicle safety features, and education. - Choose your own body shop for repairs.
After an accident, members are not required to select a body shop from a list provided by the insurer; members can take their vehicles to anybody shop they like for repair. - Additional benefits for Costco Executive members
Costco Executive members receive additional for free. These perks include glass repair reimbursement and roadside assistance.
Cons:
- Limited customer service hours
Agents don’t work 24/7. Customer service work hours are:
Monday to Friday: 5 a.m. – 8 p.m.
Saturday: 6:30 a.m. – 5 p.m. on.
Sunday: Closed - Car insurance through a third party
Costco auto insurance is provided by a third party (CONNECT, a division of American Family Insurance). When dealing with a third party, you are not guaranteed the same level of service you expect. - Complaint ratio of two times the industry standard
According to the NAIC Costco, auto insurance received twice as many complaints as expected for the market.
