Costco Insurance Reviews : A Comprehensive Guide to Coverage and Customer Satisfaction

Costco insurance Reviews, renowned for its abundance of bulk deals and complimentary samples, has ventured into the insurance realm.

The question arises: Is this a harmonious union of savings, or merely an additional membership perk to overlook?

This piece delves into Costco insurance reviews, meticulously examining the advantages and disadvantages, aiming to assist you in determining whether it aligns with your coverage requirements.

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Discover Costco insurance Reviews PHOTO: Value Penguin.


What Insurance Does Costco Offer?

Costco Insurance Agency provides various coverage options, encompassing life, auto, home, and pet insurance.

(Note that new auto and home policies are no longer offered in California or Florida.)

When you purchase a policy from Costco, you’re essentially acquiring coverage from a third-party insurer.

The substantial warehouse club capitalizes on its size to secure members lower rates and additional benefits.

Auto and homeowners insurance policies available at Costco are underwritten by CONNECT by the American Family, while life insurance policies are managed by Protective Life.

In addition to life, auto, and home coverage, Costco Insurance Agency extends its services to renters insurance, umbrella insurance, and specialty insurance for ATVs, motorcycles, and boats.

Pet insurance is also accessible through Figo.

Who Should Consider Costco Auto Insurance?


  • Exclusive discount only available to Costco members
  • Roadside assistance and lifetime renewability are included for executive members


  • New auto policies are not available in California or Florida

Provided through CONNECT by American Family Insurance, Costco’s auto insurance offers an exclusive discount in addition to CONNECT existing deals for student drivers, garage parking, and insuring multiple vehicles.

Costco Executive members can enjoy significant advantages with their car insurance, such as:

1. Guaranteed Renewability:

Ensures continuity of coverage even after an accident.

Note that this benefit is not available in Michigan or Maryland and may have exceptions for policyholders with major violations or unpaid premiums.

2. Roadside Assistance:

In most states, the policy covers expenses related to flat tires, dead batteries, and other issues, up to $75 per occurrence.

Even lower-tier Costco members, specifically Gold Star members, can experience savings with CONNECT, including:

1. Glass Repair Deductible Waiver:

If the windshield is chipped or cracked and can be repaired without replacement, the deductible is waived.

2. Accident Travel Expense Coverage:

Covers lodging, meals, transportation home, and other expenses if an accident occurs more than 100 miles from home.

Standout benefits

Insurance companies determine the value of your possessions in two ways: actual cash value, accounting for depreciation over time, and replacement cost, which does not consider depreciation.

While some home insurance providers may increase premiums for adding replacement cost value (RCV) coverage, it’s worth noting that in most states, Costco’s CONNECT by American Family home insurance policies automatically includes standard RCV coverage without additional charges.

Customer satisfaction and financial strength

In terms of customer satisfaction, American Family Insurance falls slightly below the average in J.D. Power’s home insurance customer satisfaction index.

CONNECT by American Family exhibits a consumer complaint index that surpasses expectations, as reported by the NAIC.

Despite this, it has received an A rating for financial strength from A.M. Best.

Who Should Consider Costco Life Insurance?


  • Competitive initial rates



Backed by Protective Life, Costco provides life insurance coverage in 10-, 20-, and 30-year terms, offering policies with payouts of up to $5 million.

Costco presents competitive quotes, notably lower than average rates. Although premiums experience an increase after the initial five years, they stabilize thereafter.

As per Policygenius data, a 30-year-old male nonsmoker in excellent health typically pays around $42.45 for a 30-year policy with $500,000 coverage. Opting for a Protective Life policy with a Gold Star Costco membership, the same individual pays only $27.58 monthly for the first five years and $30.18 per month thereafter.

For those seeking whole life insurance, Costco’s offerings are limited, and alternative options should be explored as they exclusively provide term life insurance products.

Standout benefits

Customer satisfaction and financial strength

Regarding customer satisfaction, Protective achieved a score of 768 out of 1,000 points in the 2023 Individual Life Insurance Study by J.D. Power.

Additionally, the company boasts a notably low complaint index according to the NAIC.

Furthermore, Protective Life has been awarded an A+ in financial strength by A.M. Best.


Costco offers its members competitive rates and exclusive home, auto, and life insurance benefits, particularly for those in higher-tier memberships.

However, it’s advisable to conduct a thorough comparison to ensure you receive optimal coverage for your budget and the most suitable policy for your requirements.


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