Costco Insurance Reviews 2026

Costco Overview

Costco not only serves as an insurance service provider but also functions as a renowned wholesale marketplace, offering a diverse array of products and services to its members. Beyond its insurance offerings, Costco provides an extensive range of discounted goods and services, making it a one-stop destination for various purchase deals.

Costco partners with American Family Insurance under the name CONNECT to provide different insurance services to its members.

Here, you will find the information on the insurance service provided by Costco, the customer reviews, and the various home and auto insurance discounts.

• No of Reviews: BBB (90), Consumer Affairs (372), Trustpilot (143) | Total (605)
• Ratings: BBB (1.5), Consumer Affairs (3.2), Trustpilot (4.5) | Average Rating (3.06)
• Costco Address: 999 Lake Dr Ste 200, Issaquah, WA 98027-8982
• Phone Number: (425) 313-8100

Insurance Services of Costco

Costco extends an array of insurance services to cater to the diverse needs of its members. The specific insurance services available are:

• Auto & Home Insurance: Costco provides insurance services for automobiles and homes, ensuring comprehensive coverage for members.
• Business Health Insurance: Costco offers health insurance tailored specifically for businesses, providing comprehensive coverage for employees.
• Life Insurance: Costco provides life insurance policies to help members safeguard the financial security of their loved ones.
• Pet Insurance: Costco offers insurance plans to help members cover the medical expenses of their beloved pets.
• Member Prescription Program: Costco provides a specialized program to assist members in accessing prescription medications, ensuring convenient and affordable healthcare solutions.

Costco Auto and Home/Condo Insurance Discounts

Costco provides different kinds of discounts to the auto and homeowners through their member prescription program as well.

Costco members may receive a Costco member-only discount on auto insurance. Costco members who saved reported an average of $595.86 in savings the first year they switched.

Costo Customers Insurance Reviews and Ratings

Your interaction with Costco auto insurance primarily involves American Family Connect, handling everything from policy purchase to claim processing. Hence, your overall experience hinges on the quality of customer service provided by American Family, rather than Costco’s involvement.

Costco Insurance Ratings by BBB and NAIC

While Connect Insurance from Costco maintains an A+ rating and BBB accreditation, policyholders’ reviews on the site average a disappointing 1.2 out of 5.0 stars, though these are based on a limited number of reviews.

Regrettably, AmFam Connect has faced criticism for its customer service, reflected in its NAIC complaint index of 2.49, indicating more than double the usual complaints for an insurer of its size.

Customers commonly express dissatisfaction with the payout amounts and the prolonged duration taken by American Family to process their insurance claims.

Other Home and Auto Insurance Company

As stated, Costco only serves its members to sell the insurance, here are other insurance company which you can directly refer or getting the service you want including American Family Insurance. Go through the reviews here, and

• GEICO Insurance
• Allstate Insurance 
• American Family Insurance
• Otto Insurance

Bottom Line: Is Costco a Right Choice ?

With a multitude of insurance companies to choose from, the process of selecting the right one can be challenging. However, Costco’s unique position not only offers essential insurance coverage but also grants members access to a wide selection of competitively priced products, providing a holistic solution that caters to diverse member requirements.

If you are a current Costco member, obtaining a quote for Connect homeowners insurance could potentially yield cost savings. However, it’s important to note that you do not necessarily need a Costco membership to acquire Connect homeowners insurance. Considering the $60 annual membership fee, it’s essential to evaluate whether the potential discount justifies the cost, especially if you won’t be utilizing other Costco member benefits.

Sources

• Costco.com
• Costco insurance services
• BBB
• Bloomberg