Disclaimer: We are not Costco Car Insurance Company. This Costco car insurance Review is designed to help deliver unbiased information about Costco Insurance to help you decide if they are one of the best options for car insurance you can choose.
This Costco Car Insurance Review is roughly a 4-min read.
Throughout our review, we will cover several essential aspects of the company, including rates, coverage options, and available discounts.
Additionally, in case you needed the ability to jump ahead in this post for specific information, we have provided links directly below to allow you to do so.
Here is what we intend to cover in this post.
- Our Costco Car Insurance Review
- Costco Insurance Company History
- Costco BBB Ratings and Complaints
- Costco Car Insurance Coverages Offered
- Costco Other Coverages Offered
- Cost of Costco Car Insurance Coverage
- Who Should Consider Costco Car Insurance?
- What Makes Costco Car Insurance Unique?
- Rideshare Coverage Availability
- Pros of Choosing Costco
- Cons of Choosing Costco
- Final Thoughts on Costco
For a quick summary of Costco auto-insurance, we have created a 30-second overview for you directly below.
Here’s that quick overview for you.
Costco car insurance is running 100% through Ameriprise car insurance company.
Costco simply offers incentives and discounts to members through a mutual partnership with Ameriprise.
If you are a Costco member, you have a good shot at saving a substantial amount of money on your car insurance coverage by switching to Costco (Ameriprise).
Several discounts are available, and the coverages are about middle of the pack compared to other car insurance companies available to you.
If you are not a member of Costco, you can save yourself some time by comparing rates with other car insurance providers in your area.
That’s the quick and easy summary of what to consider when looking at Costco for car insurance coverage.
If further detail or more information is what you are looking for, we recommend reading the rest of our review directly below.
Here are the details.
Our Costco Car Insurance Review
Costco car insurance doesn’t work in the same fashion as most car insurance providers.
In fact, Costco isn’t offering any actual car insurance to consumers.
Costco offers car insurance through Ameriprise Car Insurance Company to individuals who are currently Costco members.
Costco uses Ameriprise to offer both home and auto coverage to consumers with active memberships.
As a member of private Facebook groups for insurance agents, the consensus is most insuranceagents can’t beat their pricing. Here’s a few comments to illustrate the point:
If independent insurance agents have a hard time matching or beating their pricing, they’re worth a look to get quotes.
Even insurance agents who can sell policies to themselves will buy from Costco/Ameriprise. Like the person below.
Costco is, however, currently ranked #14 on the Fortune 500 list for being one of the largest companies in the United States based on yearly revenue.
Costco has been around since the 1970s.
However, due to this being a review of the auto insurance offered through Costco it makes more sense to look at the history of Ameriprise who is technically underwriting and providing all auto and home insurance through the partnership.
Ameriprise has a long-standing and rich history offering car insurance to consumers, and clearly, Costco is one of the most powerhouse brands in the world.
In fact, Ameriprise was initially founded back in the late 1800s and has always been a midline company when it comes to
Costco (Ameriprise) BBB Ratings and Complaints
Ameriprise doesn’t necessarily stand out as one of the best car insurance companies when it comes to customer service ratings or BBB ratings.
Currently, they are only sitting on a B- rating and have about the average amount of complaints filed compared to other car insurance companies relative in size.
Consumers do however need to understand that purchasing car insurance through Costco does mean that all your policy complaints and service would be handled by Ameriprise, not Costco.
Costco Car Insurance Coverages Offered
This is again going to be the coverage offered by Ameriprise if you decide to purchase car insurance through Costco.
With that being the case, the basic lineup for coverage options looks very similar to all what all car insurance companies offer consumers.
Here’s a look at them.
Costco Other Coverages Offered
In addition to the coverage discussed above, you can also pick up some additional coverage with Costco at an additional charge on your monthly premiums that include the following:
GAP Insurance- This allows you to get the full payoff amount for your vehicle if it’s totaled and not the depreciated value of the vehicle.
Rental Car Reimbursement- This coverage will cover any cost related to needing a rental vehicle while your damaged vehicle is either being replaced or repaired.
Cost of Costco Car Insurance Coverage
This is one of the strengths of purchasing car insurance through Costco.
The membership and option to do so will provide some very competitive rates.
This is rare to see, and typically these companies offer some of the lowest rates in the country you can find for your auto coverage.
However, always keep in mind and remember that car insurance is never black and white for pricing.
It’s always going to be based on your driving history, credit history, marital status, and more factors.
This is what makes it imperative to always compare rates with a half dozen insurance companies before ultimately making that decision.
Who Should Consider Costco Car Insurance?
This is about as simple as it can be.
The only people who should or can consider using Costco for car insurance coverages are active members.
This is a perk to Costco members only so if you currently don’t shop at Costco or have no future to do so, you can continue comparing rates with other companies.
If you are a member, Costco is an option for coverage that you should be considering and comparing quotes with.
What Makes Costco Car Insurance Unique?
Nothing necessarily makes Costco car insurance unique.
The fact that they don’t underwrite or service the policies is unique compared to most car insurance companies.
Additionally, when you switch to Costco car insurance, you are provided with a 100.00 Costco gift card which is a unique perk that we don’t see other companies attempting to replicate.
Discounts Available with Costco (Ameriprise)
Again, remember when purchasing car insurance with Costco, you are getting the perks offered through Ameriprise Insurance Company.
Here’s a look at the discounts you can check eligibility for after applying for coverage with Costco.
Safe Driving Discount- Applied for drivers who remain accident-free for 12 months and have zero claims against their policy.
Accident Merit Discount- Applied in replacement of the safe driving discount in states where the safe driving discount is not available.
Defensive Driving Discount- Applied for taking an approved defensive driving course for drivers over the age of 55.
Vehicle Safety Discount- Applied for vehicles that come with standard safety features factory-installed such as airbags.
Education Discount- Applied for high school or college students who maintain a B or better grade point average.
Multi-Vehicle Discount- Applied for any consumers who elect to have more than 1 vehicle insured with Costco Insurance (Ameriprise)
Tenure Discount- Applied to any individuals who remain with Costco (Ameriprise) for more than 3 years.
Rideshare Coverage Availability
Currently, if you purchase car insurance coverage with Costco (Ameriprise), you will not be able to add protection for rideshare driving for uber and lyft drivers.
This is a coverage that’s slowly beginning to roll out with many car insurance providers, but at this time, a good number of car insurance companies are still not offering this coverage or state availability is limited.
Pros of Choosing Costco
When choosing a car insurance company, we can typically find some unique advantages and disadvantages.
With Costco, here is what we believe to be the most significant advantages.
- Backed by Strong Financial Strength (Ameriprise)
- Very Competitive Pricing for Costco Members
- Sign Up Incentives and Strong Discounts
Cons of Choosing Costco
While looking at the disadvantages, this is what we believed to be the biggest downfalls of choosing Costco Insurance.
- Memberships Are Required
- Not the Best Customer Service
- Limited Coverages and No Rideshare Availability
Final Thoughts on Costco
If you are a Costco member, we would 100% recommend comparing rates and seeing if you could potentially save money on your car insurance.
Current members will likely find that Costco will be one of the best car insurance options near them for coverage.
If you aren’t a member, you still have homework to do and rates to compare with several other car insurance companies.
Best of luck in your search.