15 Things To Know Before Buying Costco Insurance

Costco used to be one of the companies trying to outsource the UAW and unionize its jobs. Now the union is trying to take it over, and Costco is fighting back.

Costco: The best rates but the most expensive. The best thing about Costco is that insurance can be transferred to other people, but it will cost more.

Chubb: This is the second best. It is one of the most used insurance companies, especially since it is relatively cheap.

Travelers: This is cheaper than Chubb and also has a great travel benefit in that it will pay for your trips if you are covered under your policy.

15 Things to Know Before Buying Costco Insurance In 2022

1. Insure Your Home and/or Vehicle With CONNECT Through Costco Insurance

Costco doesn’t have its own insurance agency, and it doesn’t plan on getting one.

Costco has partnered with an insurance company, Connect, with the intention of taking care of our members’ insurance concerns.

The company is known for its reliability and trustworthiness. It currently holds about two percent of the insurance market share here in the U.S.

2. Costco Insurance Is Only Available for Warehouse Members

You get members-only discounts and a bunch of other benefits by being a Costco member. It is currently the cheapest car insurance available so Costco’s offering may compete well here.

We are pleased to offer exclusive deals and rewards for our executive/business members and the benefits don’t stop there.

3. Make Sure Costco Insurance Is Available in Your State

The good thing about Costco auto insurance coverage is that it is available in every state.

The states in which you cannot be covered by Costco’s CONNECT plans are Alaska, Arizona, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington and Wyoming.

4. Costco Insurance for Vehicles Provides Basic Coverage

In a word, Costco insurance for cars can best be described as basic. Few frills mark this coverage, which does take care of the following:

Liability coverage, which pays for legal costs and damages to individuals or other vehicles in an event of an accident.
Collision coverage, which protects against damage to a vehicle in an accident. This is likely to be your most important coverage.

The car isn’t an expensive purchase because you have to pay for insurance and maintenance.

Including all members and all auto insurance policyholders, the Glass Repair Deductible Waiver, Stolen Key Coverage and Accident Travel Expense.

5. Costco Insurance for Homes Is More Robust

The home insurance plans at Costco.com are more extensive than the plans at most other companies.

There are other different types of medical payments coverage, and there is also liability coverage, and the type of coverage will depend on the particular insurance company.

Costco is offering coverage for earthquake insurance for members in the northern and central part of California.

You have built-in home insurance benefits that include ID theft protection, credit card or other fraud, and even food spoilage up to $500.

But, if the power goes out in the heat of summer, your refrigerator will spoil, so you will not get any insurance money.

It’s quite possible that your home may be broken into and burgled. Because of this, you can get $100 towards lock repairs.

6. You Can Cover Other Investments with Costco Insurance, Too

Homeowners, Auto, Business, Recreational Vehicle, Boats, RVs, Campers, and Motorcycles.

You can use some insurance tools to customize your policy for your specific life.

7. Save Potentially Hundreds of Dollars with Costco Insurance

If you have had an accident in the past, then Costco’s car insurance is a good value since it will likely cover the cost of repairing your car in the event of an accident for a reasonable monthly fee.

Even though Costco has higher rates that USAA, we believe Costco’s rates give better bang for your buck.

But don’t be fooled into thinking Costco rates are any better than other insurance companies. Other insurance companies also may offer discounts on homeowner’s insurance, but not all companies are equal.

8. Bundle for Even Greater Costco Insurance Savings

If you’re in the market for both home insurance and car insurance, you might want to bundle those two policies at Costco. They can save you even more.

With the bundling discount, you are getting a good deal on these policies, but you should consider getting another policy to make sure you have coverage while the bundling discount is in full effect.

9. Check Out Which Costco Insurance Discounts Could Benefit You

You can get discounts on your auto insurance based on the following:
Your current insurance coverage
Your driving record
Your driving history
Your vehicle’s safety features
Your vehicle’s model year
Your vehicle’s age
Your vehicle’s condition
The reason behind this is that insurers pay less for claims filed by drivers who are older and have certain safety features and who are likely to be more cautious and more responsible when on the road.

There is no cap on how much the discounts may vary.
You may save as much as 50%, but not more than 80%.
The discounts may vary from 10% to 40%.

10. Choose From Plenty of Costco Insurance Add-ons for Home & Auto

Rental car coverage is essential if you get into an accident that damages your rental car. New car replacement should be a part of any comprehensive Costco auto insurance policy. Additional car insurance coverage is best to cover the cost of replacing an old vehicle with a new one, in the case of an accident.

One of the types of coverage in the add-on home insurance is the Scheduled Personal Property which covers all of the items on the property that are extremely expensive.

If you own a Picasso, a rare sports card collection, or a grandmother’s five-carat platinum ring, you can protect it.

11. Receive Extra Costco Insurance Services as an Executive Member

Executive members are paid more than gold members, and they also receive more perks.
– You can change the order of your words on a line.
– You can split a sentence into two separate sentences by
using a period to finish one and start a new one.

To make your travel easier, as an Executive member you get a roadside assistance add-on that can be included with your policy. If you are an Executive member, you don’t have to pay for this service.

They also get lifetime benefit renewability, meaning the cost of insurance is less than if they were to drive without insurance.

This benefits them more than anyone else, because, it’s a lot easier to break in if you have a home and can’t afford the premium to make it locked up.

12. Make Your Costco Insurance Payments on Your Terms

You have two choices about your Costco insurance policies. You can either make monthly payments or you can make a large one time payment.

With Costco, you’ll usually pay a higher insurance premium for less coverage, so it’s a good idea to shop around for the best deal.

13. Costco Insurance Isn’t the Most Tech Savvy

Costco Insurance has a good customer service department, but they are not very tech-savvy and the website is not the easiest to navigate.

If you’re in an accident with a driver who has State Farm insurance, the app will ask you to take pictures of all the damage to your car and fully detail the extent of the body work needed. The app can also take pictures and post the details to your State Farm claims page that will be linked to your State Farm account.

Unfortunately, at this time, there is no technology that allows CONNECT to monitor the Internet for changes.

14. Customers Are Generally Positive About Costco Insurance

It’s important to mention that Costco and Clearsurance.com are not connected with each other. It’s great that customers are generally pretty happy about their Costco insurance, but whether or not Costco insurance is actually a good deal for them isn’t for us to say.

Customers pointed to the company’s commitment to innovation as a key strength.

The biggest complaint I’ve come across is not the rate change, but rate changes, up and down, from year to year.

15. Ultimately, Costco Insurance Is Great for Some

Costco might not be the best option for people who are very particular about their coverage and who want to be able to customize it.

– Coverage and price for new home vs. old home
– Coverage and price for new car vs. old car
– Coverage and price for new RV vs. old RV
– Coverage and price for new boat vs. old boat

Get the best price on insurance in just one location. Don’t waste your time
sifting through insurance companies, agents, and websites to find the
best price.

If you want to know more about Costco Optical, you can find our posts on Costco’s prices, how to get the best deal on a Costco membership, and if you should buy a Costco membership for your business.

Conclusion

Costco Insurance works with the American Family Insurance’s subsidiary CONNECT, who handle the company’s insurance needs.

Customers benefit from discounts on policies like home and car. Insurance providers also offer 24/7 assistance.