Does Costco Have Good Car Insurance Discounts?
Costco’s Connect car insurance offers drivers plenty of discounts, starting with a lower rate for simply having a Costco executive membership.
Written by Jaya Anandjit
Reviewed by Kathleen Flear
Costco executive members can enjoy lower car insurance premiums when they sign up for Costco’s Connect insurance, provided through a partnership with American Family. Costco Connect offers a wide range of discounts, including good driver discounts and vehicle safety feature discounts.
Comparison shopping can help you find the lowest rate when you’re searching for
cheap car insurance
, but that isn’t the only way to secure an affordable premium. Most car insurance companies offer numerous discounts that can significantly cut your annual payments, and Costco’s Connect insurance is no different! To help you get the best car insurance rate from your Costco executive membership, we’ve compiled a full list of
Costco car insurance
discounts. Let’s get started. Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds (Title in payload)
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversWhat auto insurance discounts does Costco offer?
Costco is partnered with American Family to provide auto, home, renters, umbrella, and other insurance policies to executive members under their Connect Program. This program is available in 34 states, and their premiums are generally lower than average on a national scale.
Auto insurance discounts from the Connect program fall into three groups: safe driving discounts for car owners who prove they are low-risk drivers, vehicle discounts for cars that are protected by safety tech and responsible garaging, and policy discounts based on personal factors, renewal loyalty, and policy inclusions.
Let’s take a closer look at each discount category!
Costco safe driver discounts
Insurance providers prefer to insure drivers that demonstrate safe and reliable driving habits, and Costco is no different. Like most companies, the Connect program minimizes the risk of insuring unreliable drivers by offering them higher rates.
Meanwhile, car owners with cleaner driving records benefit from lower premiums, and extra safe drivers may be rewarded with safe driver discounts. Here are some of the Costco Connect insurance discounts offered to safe drivers:
- Good driver discount (exclusive toCaliforniadrivers): California drivers with spotless driving records and minimal to no auto insurance claims may qualify for Costco’s good driver discount.
- Premier safety discount: If your policy includes multiple drivers with clean driving records across the board, you may be eligible for a discount.
- Defensive driver discount: Eligible Connect policyholders who take a defensive driving course can benefit from a discount.
- Student away discount: If your auto insurance policy includes a student away at school at least 100 miles from your garaging address, you may be eligible for a discounted rate. This discount is due to the lower risk of having a young driver who only operates the vehicle during certain times of the year. Savings depend on your location and vehicle.
Unlike other providers, Costco does not offer usage-based or pay-per-mile insurance policies with discounted rates for low-mileage drivers. Drivers who require an SR-22 or FR-22 form for major violations are also ineligible for Costco auto insurance policies.
Costco vehicle discounts
When calculating your rate, insurance providers assess the risks associated with your vehicle’s make, model, and age. Reliable SUVs with high safety ratings tend to get the lowest rates, while
Regardless of the vehicle you drive, you can get lower premiums if you’re eligible for these vehicle discounts from Costco:
- Vehicle safety features discount: You may receive a discount if your vehicle has high safety ratings from protective technology like anti-lock brakes, airbags, automatic seatbelts, and anti-theft devices.
- Garaging discount: If you park your vehicle in a private garage overnight, you may qualify for a lower rate. Eligibility and savings depend on your location.
MORE: Good driving record discounts, explained
Costco policy discounts
Lastly, Costco members who purchase insurance under the Connect program may qualify for the following discounts based on their policies and other personal factors:
- Costco member discount: Executive members automatically receive discounts on their Connect car insurance policies for simply having a Costco membership.
- Good student discount: Full-time high school, college, or university students under 25 who maintain the grade criteria for this discount can benefit from savings on their policies.
- Education discount: Drivers who complete a four-year post-secondary program (beyond high school) may qualify for this discount on their policy.
- Multi-car discount: Drivers who insure multiple vehicles under Costco/Connect can get lower premiums on their policies for all applicable vehicles.
- Bundling discount: Insuring multiple products under Costco/Connect can help you save on each policy with their bundling discount. Add home, auto, renters, life, umbrella, or any other eligible policy to one profile with Connect to receive discounts on each policy.
- Tenure discount: Loyal customers who continuously renew their Costco/Connect insurance over a certain period may qualify for lower premiums on their policies.
MORE: Continuous insurance discounts, explained
Does Costco have good car insurance discounts?
Costco/Connect offers fairly standard discounts, and while your savings may sum up to a far lower insurance rate than your pre-discounted premium, you could potentially miss out on savings that aren’t offered by this program.
For example, providers like
State Farm
and Allstate
offer telematics
programs that track driving habits and reward safe drivers with policy discounts. Also, most providers have low-mileage discounts for pay-per-mile or usage-based policies, which Costco does not offer.If you already have a Costco executive membership, it's possible that a Costco/Connect car insurance policy with any of the discounts listed above could land you an overall cheaper rate than if you were to stick with a provider that offers more discounts. But with only 12 available discounts, you may be able to find a provider with a larger collection of stackable savings—which could score you a cheaper rate than Costco’s.
Be sure to do your research and compare at least three different providers and rates before you commit to purchasing any auto insurance policy from Costco.
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Does Costco offer a military discount?
Costco does not offer a military discount under their Connect insurance program with American Family. Military personnel can apply for other discounts on their Costco/Connect insurance policy, but they are unable to claim savings based on their military status.
What is the Costco senior discount?
Costco does not offer a senior discount. Instead, seniors can complete a defensive driving course or a safety refresher course to receive a defensive driver discount on their Costco/Connect policy.
