Considering Insurance Options: Costco Offers Both Home and Auto Policies
Costco car and home insurance offers several benefits for Costco members compared to other providers, primarily through discounts, convenience, and some unique perks tied to Costco membership.
Benefits of Costco Car and Home Insurance
Costco members often receive discounts on both home and auto insurance by providing their membership number at purchase. Members can bundle home and auto policies, paying for both at once, often resulting in additional savings. Roadside assistance services are available for Costco Executive members, enhancing value beyond standard coverage. Executive members also have the benefit of lifetime renewability on their auto insurance policies, adding long-term stability.
Multiple car insurance discounts include good driver discounts (in some states), defensive driver course discounts, multi-vehicle discounts, and vehicle safety feature discounts (airbags, garaging). Costco provides standard car insurance coverages including comprehensive, collision, liability, uninsured motorist, medical expenses, roadside assistance, rental car insurance, and glass repair deductible waivers. Competitive rates make Costco's CONNECT (insurance brand used) a cost-effective choice, with average monthly rates around $127 for full coverage.
Comparisons to Other Providers
American Family Insurance, offered as an option through Costco affiliates, provides special rates and better bundling discounts (up to 25%) for home and auto, especially for certain groups (e.g., SSI recipients). Other major insurers like USAA, Travelers, and GEICO may offer slightly lower or similar rates for full coverage but without the Costco membership perks. Some insurers, such as Farmers and Nationwide, may have a wider variety of specialty coverage options that Costco’s policies lack.
American Family and Allstate emphasize discounts based on driving behavior and mileage, with features like accident forgiveness and pay-per-mile policies—areas where Costco’s insurance may not compete as strongly.
Additional Benefits and Considerations
Costco insurance policies aren't always the cheapest option, especially after renewal. Costco insurance isn't available in every state. Some policyholders have complained about the claims process with Costco insurance. The average home insurance cost rose 8.7% faster than the rate of inflation from 2018 to 2022.
However, Costco provides a premier safety discount if all insured drivers haven't had traffic violations, accidents, or claims in the past four years. Costco home insurance offers discounts if you completely replace your roof, equipment breakdown coverage for home appliances, and potential service line coverage for downed utility lines or broken pipes connected to your home. Costco offers a student away discount if a student attends school more than 100 miles away from home. Home lockout assistance is available 24/7.
Costco home insurance offers up to $15,000 in identity fraud expense protection, and up to $1,000 in broken window repair or replacement. Costco offers a multi-vehicle discount for insuring multiple cars, trucks, or vans. It's essential to shop around for home insurance to save on premiums, as some states have cheaper home insurance while others pay thousands more than the national average.
In summary, Costco insurance benefits revolve around membership-tied discounts, bundling convenience, roadside assistance for Executive members, and competitive pricing, mainly for customers already invested in Costco membership and preferring straightforward coverage. It may not offer the breadth of specialty coverage some competitors provide but excels in value-added member perks and service convenience.
If you are a Costco member or considering membership, Costco insurance could be a cost-effective and convenient choice, especially if you value bundled policies and roadside assistance. For customers needing specialized coverage or residing outside of Costco’s selling states, exploring other providers may be necessary.
- As a Costco member, you can enjoy discounted rates on not only car and home insurance, but also on lifestyle products such as shopping and home-and-garden items, thanks to the benefits that come with your membership.
- In comparison to other insurance providers, Costco's auto insurance stands out for its unique member perks, like the premier safety discount, home lockout assistance, and identity fraud expense protection, in addition to competitive pricing and bundling convenience.
