More Than Just Bulk Savings: The Costco Insurance Model
Most people don't realize that Costco doesn't actually sell insurance. Instead, they’ve partnered with CONNECT, powered by American Family Insurance, to offer a "private-label" experience.
When you request a Costco car insurance quote, you are accessing a pool of rates specifically negotiated for the Costco membership base. In 2026, data suggests that 9 out of 10 members stay with their policy year-over-year—a retention rate that is almost unheard of in the insurance industry.
Executive Members: The "VIP" Coverage
While any Gold Star member can get a quote, Executive Members unlock a suite of "concierge-level" benefits that are usually expensive add-ons with other carriers.
The Executive-Only Perks:
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24/7 Roadside Assistance: Stuck with a flat or a dead battery? It’s included in your policy.
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Lifetime Renewability: This is the big one. In most states, as long as you pay your bill and don't commit fraud, your policy cannot be canceled due to accidents or tickets.
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Home Lockout Assistance: If you bundle your home and auto, they'll even help you get back in your house if you're locked out.
What a Typical Quote Looks Like
Nationally, Costco-branded policies are consistently among the cheapest options for middle-of-the-road drivers. Because the underwriting is handled by American Family, you get the financial stability of a "Big Five" insurer with a much smaller price tag.
Note: These are national averages. Your specific quote will vary based on your zip code and driving history.
3 Features Every Member Should Use
If you’re running a quote, make sure to look for these specific "Costco-special" line items:
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Glass Repair Waiver: If your windshield has a chip that can be repaired (rather than replaced), Costco/CONNECT often waives your deductible entirely.
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Travel Interruption Coverage: If you’re more than 100 miles from home and get into an accident, your policy can help cover your food and hotel costs.
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The Charity Bonus: In 2026, American Family is often running promotions where they donate to the Children’s Miracle Network just for you completing a quote—win-win!
Is There a Catch?
No policy is perfect. Before you cancel your current plan, keep these two things in mind:
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Availability: As of 2026, Costco’s insurance partners do not offer new policies in California, Florida, or Alaskadue to state-specific underwriting shifts. If you live in these states, the "Get a Quote" button may be grayed out.
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Claims Service: While the prices are low, some members report that the claims process can be slower than "agent-heavy" companies like State Farm or Allstate since everything is handled digitally or via a central call center.
The Verdict: Should You Get a Quote?
If you live in an eligible state and already pay for a membership, it is a 10-minute task that could save you $500 a year.The savings on the insurance premium alone usually pays for the Executive Membership ($130/year) four times over.
Pro Tip: Have your current "Declarations Page" handy. When you get your Costco quote, make sure you are comparing the same liability limits (e.g., 100/300/100) to see the true "warehouse" discount.
