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Should You Buy Insurance From Costco?

Shopping at Costco has its benefits. You may have purchased a membership to buy in bulk (and nab a few cheap hot dogs), but the big box chain has some financial products worth a look, too — including insurance.  

Getting a policy through Costco can mean lower premiums and exclusive benefits, especially for those with upgraded Executive memberships.

If you’re considering a policy through Costco, you should definitely factor in the cost of membership: As of November 2023, a standard Gold Star membership costs $60 a year plus tax, while an Executive membership costs $120. (And the company has already acknowledged increases are on the way.)

If you’re already a Costco member, it could be worth getting a quote as you shop for insurance. Here’s what you need to know about buying insurance from Costco.   

What we’ll cover 

Costco Insurance Agency offers many types of coverage, including life, auto, home and even pet insurance. (The agency is not offering new auto or home policies in California or Florida anymore, though.)

When you buy a policy through Costco, you’re actually purchasing coverage from a third-party insurer. The mammoth warehouse club is able to leverage its size to get members lower rates and other perks. Auto and homeowners insurance policies offered at Costco are underwritten by CONNECT by American Family, while life insurance policies are handled by Protective Life.

Costco Insurance Agency also offers renters insurance, umbrella insurance and specialty insurance for ATVs, motorcycles and boats. Pet insurance is also available through Figo.

Who should consider Costco auto insurance? 

CONNECT Auto Insurance for Costco members

  • Cost

    The best way to estimate your costs is to request a quote

  • App available

  • Policy highlights

    Powered by American Family, this auto insurance is available to Costco members with unique perks and discounts. Executive members get additional perks with included roadside assistance and lifetime renewability to prevent your policy from being dropped as long as you remain an executive member.


  • 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

Offered through CONNECT by American Family Insurance, Costco’s car insurance includes an exclusive discount that’s in addition to the deals that CONNECT offers for student drivers, garage parking and insuring multiple cars.  

Executive members stand to benefit the most from Costco’s car insurance, including:  

  • Guaranteed renewability. This can ensure your coverage continues, even after an accident. (This benefit isn’t available in Michigan or Maryland, however, or to policyholders who have major violations or don’t pay their premiums. There are other other exceptions, as well.) 
  • Roadside assistance. In most states, your policy could cover flat tires, dead batteries and other issues, up to $75 per occurrence.

Lower-tier members can also see some savings. CONNECT covers the following scenarios for Costco Gold Star members:  

  • Glass repair deductible waiver. If your windshield is chipped or cracked and can be repaired without needing to be replaced, the deductible is waived.  
  • Accident travel expense coverage. If you’re involved in an accident more than 100 miles from home, this covers lodging, meals, transportation home and other expenses.

Standout benefits 

Costco’s auto insurance comes with several discounts, including a defensive-driver discount for anyone who’s taken an approved course and a “distance student” deal for undergrads who leave their car at home while attending college.

Customer satisfaction and financial strength 

CONNECT by American Family earned an A for financial strength from A.M. Best, which measures an insurance company’s ability to pay on claims and debts. When it comes to customer satisfaction, CONNECT sits near the middle of the pack, according to J.D. Power’s 2023 ratings, earning four ratings between 819 and 837 out of 1,000 in regional studies.

American Family is ranked 9th for claims satisfaction out of the 25 companies reviewed by J.D. Power, but CONNECT had a higher-than-expected volume of complaints, according to the National Association of Insurance Commissioners.

Who should consider Costco homeowners insurance? 

CONNECT Homeowners Insurance for Costco members

  • Cost

    The best way to estimate your costs is to request a quote

  • Maximum coverage

  • App available

  • Policy highlights

    CONNECT by American Family offers Costco members homeowners coverage that can protect you and your home in a variety of situations. In addition to dwelling coverage, personal property insurance, endorsements and scheduled personal property coverage, Costco members can also benefit from identity theft protection, stolen credit card use or check fraud protection, refrigerated property coverage and equipment breakdown.

  • Does not cover

    Flood damage, earthquake damage, sewer backups or any damage from lack of maintenance.


  • Variety of discounts available to customers
  • Coverage for identity theft protection and fraud protection


  • New homeowners policies are not available in California or Florida

Costco’s home insurance is also provided by CONNECT by American Family, with several types of enhanced coverage, including:

  • Refrigerated property coverage. If your home loses power for an extended period of time, you can be reimbursed for up to $500 worth of perishable items. (This coverage isn’t available to residents of Florida or Texas.) 
  • Identity theft protection. If your identity is stolen, Costco’s home insurance can cover associated costs of up to $5,000.
  • Stolen credit card and check fraud coverage. If your credit card is stolen or hacked, or if someone writes a fraudulent check on your account, this deductible-free benefit can cover legal fees, lost wages and other costs associated with restoring your identity.
  • Service line coverage. Homeowners are responsible for water pipes, power lines, cables and sewer lines on their property. This add-on covers the cost of repairing damage due to wear and tear, rust and deterioration, freezing, electrical malfunction, root and tree invasion, and other issues.
  • Equipment breakdown coverage. If an appliance or smart home system is damaged, this add-on coverage can pay for the cost of repairs or replacements. It doesn’t cover normal wear and tear, however.  

Costco Executive members get several other perks, including:  

  • Glass repair reimbursement. If there’s a broken window, up to $1,000 in repairs is covered per occurrence. There’s a limit of two claims per 12-month period.  
  • Home lockout assistance. Locked out of the house? Your policy includes 24-hour service and coverage of up to $100 per occurrence, with a limit of two claims a year.  

Not all the Executive membership benefits may be available to condo owners, though, so read your quote carefully to see what is included.

Standout benefits 

There are two ways insurance companies calculate the value of your belongings — the actual cash value, which considers the depreciated worth of an item over time, and the replacement cost, which doesn’t. Many home insurance companies charge more to add replacement cost value (RCV) coverage to a policy but, in most states, RCV coverage comes standard with Costco’s CONNECT by American Family home insurance policies.

Customer satisfaction and financial strength 

In terms of customer satisfaction, American Family Insurance ranks just below average in J.D. Power’s home insurance customer satisfaction index. CONNECT by American Family has a higher-than-expected consumer complaint index according to the NAIC, but it earned an A for financial strength from A.M. Best. 

Who should consider Costco life insurance? 

Protective Life Member Advantage Life Term Life Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • App available

  • Policy highlights

    Costco members looking for term life insurance policies can get coverage for up to 30 years and between $100,000 and $5 million of coverage.


  • Competitive initial rates


  • Permanent life insurance not available
  • Not available in New York
  • May require a medical exam

Underwritten by Protective Life, Costco’s life insurance coverage is available in 10-, 20- and 30-year terms with policies paying out up to $5 million.

Cotsco offers affordable quotes compared to average rates. And while the premiums do increase after the first five years, they remain the same after that point.

According to data from Policygenius, the average 30-year-old male nonsmoker in excellent health pays about $42.45 on a 30-year policy with $500,000 worth of coverage.

That same individual buying a Protective Life policy with a Gold Star Costco membership only pays $27.58 per month for the first five years and $30.18 per month thereafter.

If you want whole life insurance, however, you’ll need to look elsewhere — Costco only offers a term life insurance product.  

Standout benefits 

Costco’s life insurance doesn’t require a medical exam in all cases, which could be a benefit to some who would rather skip the hassle of an exam. It offers applications online or by phone, with quotes available online.  

Customer satisfaction and financial strength 

In terms of customer satisfaction, Protective earned 768 out of 1,000 points in J.D. Power’s 2023 Individual Life Insurance Study. According to the NAIC, the company’s complaint index is very low.

Protective Life also earned an A+ in financial strength from A.M. Best.

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Bottom line 

When it comes to home, auto and life insurance, Costco is able to secure its members lower rates and exclusive benefits, especially higher-tier members. But you should still comparison shop to make sure you’re getting the most coverage for your money and the best policy for your needs.  

Why trust CNBC Select?

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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