Costco Auto Insurance Review

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Costco is known for selling quality products at great prices. The warehouse club offers exclusive deals on items like food, home goods, seasonal products, vacations and autos. Members have been turning to Costco to buy auto insurance for the last 20 years. Costco has insured more than 400,000 members through a partnership with Ameriprise Insurance.

When compared to other insurers, Ameriprise offers already-low rates. Costco members purchasing Ameriprise vehicle insurance through the Costco insurance program will benefit from a member-exclusive discount on their policy and free roadside assistance. Read our Costco car insurance reviews to decide if its auto insurance is right for you.

Cost of Costco car insurance

Costco claims, “members who saved reported an average of $590 in savings the first year they switched their auto insurance.” We collected sample quotes to compare how Costco car insurance rates for members compared to Ameriprise using a 25-year-old male, 25-year-old female and a 35-year-old married couple, all with a good driving record.

Annual cost of Costco car insurance

Insurer profile Cost of Ameriprise Insurance Cost of Costco car insurance
25-year-old male $1,478 $1,404
25-year-old female $1,283 $1,215
35-year-old married couple
with 2 household vehicles
$782 $690

Buying Costco insurance can save members about 5 to 10 percent on car insurance, compared to buying it directly from Ameriprise. In addition to the savings, members also get free roadside assistance and towing, which covers up to $75 per occurrence for vehicles on the auto policy.

Costco car insurance coverages

Besides free roadside assistance and towing, members are also guaranteed the option to renew their auto insurance policy. Most insurers have don’t have to renew your policy when the term ends if you have too many driving infractions or accidents. This extra Costco member benefit guarantees you’ll always have the option to renew your auto insurance policy no matter how many auto accidents or traffic violations you were involved in.

Policies start with basic liability coverage that insures you according to the state minimum requirements against bodily injury and property damage. Here are other Costco insurance coverages available through Ameriprise:

  • Bodily injury insurance pays for damages if you injure someone in an auto accident.
  • Collision and comprehensive coverage covers damages to your vehicle from non-vehicle accidents and events like vandalism or natural disasters.
  • Gap insurance covers the full amount you owe on the loan of your new vehicle
  • Medical payments covers medical bills for your or your passengers regardless of who is at fault in an accident.
  • Personal injury protection covers damages if you or a pedestrian are injured in an accident.
  • Property damage insurance pays for the cost of repairs to damaged property if you’re at fault.
  • Rental car reimbursement coverage pays for a rental car while your vehicle is being repaired after an accident.
  • Uninsured motorist coverage covers your damages if the at-fault driver wasn’t insured.

How to get Costco car insurance discounts

Simply being a Costco warehouse member gets you a savings of 5 to 10 percent off Ameriprise’s rates, although Costco claims the savings are higher — as much as $590 when switching from another car insurer. When shopping for car insurance, compare several insurance carriers to find the best price.

Take advantage of other Costco insurance discounts offered from Ameriprise such as:

  • Accident forgiveness: Safe drivers can deduct one accident from their driving history so their car insurance rates don’t increase.
  • Bundling discount: You can bundle your Ameriprise auto, home and life insurance together to save on all of them.
  • Defensive driver discount: Drivers who complete a defensive-driver course save money.
  • Garaging discount: Park your car in a garage for extra savings.
  • Good driver discount (California only) and Premier Safety: This discount allows drivers to save by being accident-free for four or more years.
  • Student away discount: This discount keeps your student driver on your policy for a discounted cost so they’re covered when driving during a weekend visit.
  • Student discount: This discount offers savings for drivers with a four-year college education and full-time students under 25 years old with good grades.
  • Tenure discount: This gives loyal drivers a better discount the longer they keep continuous coverage with Ameriprise.
  • Vehicle safety feature discount: You can get a discount for vehicles equipped with safety and anti-theft features, such as alarm systems and airbags.

Is Costco car insurance worth it?

Costco insurance is worth it for Costco members who wish to save on their auto insurance. Here are the pros and cons of whether Costco car insurance is right for you.


  • Low prices
  • Roadside assistance and towing is included
  • Drivers with recent accidents who may be worried about insurance policy cancellation
  • Gap insurance available, which not all auto insurers offer


  • Requires a Costco membership, which costs $60 or $120
  • No dedicated insurance agent for assistance
  • Premiums not eligible for Costco’s annual 2% member reward

Frequently Asked Questions

Costco auto insurance offers discounted rates compared to other insurers and throws in free roadside assistance and towing. Here are some of the most frequently asked questions about Costco insurance:

Do I have to be a Costco member to benefit from Costco car insurance?

Yes. To qualify for Costco’s exclusive auto insurance rates through Ameriprise, you’ll need to be a Costco member.

Is Costco auto insurance available nationwide?

Costco does not offer coverage in all states. Car insurance is not available in Tennessee and Massachusetts. According to Costco, discounts, service and savings vary by state.

Who do I contact if I was in an accident?

Costco auto insurance is underwritten by Ameriprise Insurance. For any questions or to file a claim, contact Ameriprise with the phone number provided when you sign up.

Are Costco insurance reviews positive?

The Better Business Bureau’s Costco car insurance reviews are mixed, although Ameriprise does attempt to resolve customer issues. Because the insurer responds to customer complaints, the BBB awards Ameriprise with an A+.

Cynthia Paez Bowman
Cynthia Paez Bowman
Contributing Writer

Cynthia Paez Bowman is a finance, real estate and international business journalist. Her work has been featured in Business Jet Traveler, MSN,, and She owns and operates a small digital marketing and public relations firm that works with select startups and women-owned businesses to provide growth and visibility. Cynthia splits her time between Los Angeles, California, and San Sebastian, Spain. She travels to Africa and the Middle East regularly to consult with women’s NGOs about small business development

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