Costco is a membership club that offers products and services for sale online and in its warehouse locations. Members also receive special discounts, pricing, and benefits through Costco\u2019s partnerships. One of these benefits is Costco car insurance through CONNECT (formerly Ameriprise Auto and Home), a division of American Family Insurance.<\/p>
American Family Insurance was founded in Madison, Wisconsin, in 1927. Since then it has grown into a Fortune 500 company with $34 billion in total assets and $10.6 billion in customer equity. It has been providing Costco auto insurance to members for nearly 20 years. American Family Insurance offers a wide variety of policies, including vehicle, property, business, and life insurance.<\/p>
Costco members can purchase car insurance from Connect by American Family and get a member discount. Connect has a robust menu of car insurance discounts, but a slightly higher than average level of consumer complaints. Costco car insurance might be worth considering if you are a Costco member who is more interested in broad coverage than in price breaks for being a low-mileage driver.<\/p>
However, don\u2019t automatically assume your Costco membership will result in the best auto insurance rates. Shop around for car insurance quotes from multiple insurers before you make your decision.<\/p>
Costco car insurance is provided by Connect from American Family. Costco members are eligible for exclusive discounts through Connect, but you don\u2019t have to be a Costco member to purchase a policy from Connect.<\/p>
Car insurance policies from Costco provide standard coverage options and endorsements that you can add to your policy.<\/p>
According to Costco\u2019s website, more than 400,000 members have switched their auto insurance coverage to Connect. Costco car insurance policies are available in 44 states and Washington D.C., and certain coverages and discounts are subject to state availability.<\/p>
Here\u2019s a closer look at the core coverage types you can buy through Connect:<\/p>
Liability insurance includes two parts\u2014bodily injury and property damage. If you cause an accident, liability insurance compensates the other driver for their losses, including medical bills and vehicle damage, up to the policy limit. <\/p>
Liability insurance also pays for your legal defense costs if you\u2019re sued. In most states, drivers are required to carry a minimum amount of liability insurance.<\/p>
Comprehensive insurance pays for your vehicle\u2019s repairs if there is damage from a non-collision incident. For example, comprehensive insurance covers hail damage, theft, vandalism, falling objects and accidents with animals. The maximum payout for comprehensive insurance is the actual cash value of your vehicle if it\u2019s totaled. <\/p>
If you need to file a claim, your insurance check will be reduced by the amount of your deductible.<\/p>
Costco offers Gap (Guaranteed Asset Protection) insurance that may cover your new car if it is totaled or badly damaged. It covers the difference between the amount you owe on your vehicle and what your car is currently worth.<\/p>
Costco\u2019s gap insurance policy offers policyholders coverage for a new car or replacement during the first year of having the vehicle insured.<\/p>
As the name suggests, collision insurance pays for your vehicle\u2019s repairs after an accident, regardless of fault. It also covers accidents with stationary objects, like a telephone pole or tree.<\/p>
Collision covers the cost of your repairs if you collide with another vehicle in a driving accident and damage your car. It pays out without regard to who is at fault and can also be used to help with repairs if you hit an object on the road or a pothole or accidentally crash into a pole or concrete divider in a parking lot.<\/p>
Comprehensive coverage pays for non-collision accidents. For instance, it may cover damages due to any of the following:<\/p>
Collision and comprehensive insurance are typically available together as part of a full coverage policy. These policies are usually optional, but if you lease or finance your car, you might be required to purchase them. Like comprehensive coverage, the maximum payout for collision insurance is the value of your vehicle if it\u2019s totaled, minus a deductible.<\/p>
The medical payments portion of a policy pays for your medical bills if you, a family member, or a passenger in your vehicle gets injured in an accident. It covers expenses like ambulance rides, X-rays, prescription medication, surgery and rehabilitation. Medical payments insurance is included with a full coverage policy and does not have a deductible.<\/p>
In some states, uninsured motorist coverage is required, and it\u2019s optional in other states. If you get hit by a driver who does not have insurance or doesn\u2019t have enough insurance to cover your losses in full, uninsured\/underinsured motorist coverage will provide additional coverage for you and your passengers\u2019 injuries. In some states you can also buy coverage for damage to your vehicle caused by an uninsured driver.<\/p>
Personal injury protection (PIP) is a required coverage in no-fault states. This policy pays for your medical bills if you get injured in an accident, regardless of which driver caused the crash. It also extends coverage to passengers riding in your vehicle who are also injured. If you live in a fault state, PIP is often available as an endorsement for extra protection. <\/p>
Having PIP, or personal injury protection, insurance is required for drivers who live in states with no-fault determination. In no-fault states, drivers involved in an accident claim compensation from their respective insurance companies, no matter who is at fault. PIP covers medical bills for personal injuries resulting from a car crash.<\/p>
Costco members can opt to add PIP, which may help pay for a portion of any medical treatment, lost income and funeral expenses. It can cover you, your spouse or family members living in your household, other persons named on the policy, any passenger in your car at the time of the accident and any pedestrians involved in the accident.<\/p>
Costco’s uninsured and underinsured motorist insurance may pay for medical expenses incurred after an auto accident with a hit-and-run driver or a driver without required liability car insurance. It may also pay for lost income and funeral expenses.<\/p>
This is not guaranteed for all accidents or states, so be sure to check your state requirements and read your full policy.<\/p>
Costco’s car rental reimbursement will pay for a rental car while your vehicle undergoes repair after sustaining damage in an accident that your insurance policy covers. This coverage is optional and allows you to choose the daily amount you want to cover you when you open the policy.<\/p>
Costco auto insurance also offers the following optional coverages for your vehicle:<\/p>
How much car insurance costs with Costco will depend on the make, model and age of the vehicle, the age and driving experience of any insured persons, driving records, where you live and more. However, you can reduce the premium if you qualify for one or more of the discounts Costco offers.<\/p>
For example, you’ll save money if you bundle your auto insurance with a home or umbrella policy. You can find further information for bundling on the Costco discount page.<\/p>
You must enter your zip code, membership number and personal information to get a quote through the website, or you can contact them via phone.<\/p>