We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence. The offers that appear on this site are from companies from which TheSimpleDollar.com receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. The Simple Dollar does not include all card/financial services companies or all card/financial services offers available in the marketplace. The Simple Dollar has partnerships with issuers including, but not limited to, Capital One, Chase & Discover. View our full advertiser disclosure to learn more.
Costco Auto Insurance Review
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|
|35-year-old married couple|
with 2 household vehicles
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.