Costco is America’s go-to when it comes to bulk wholesale. So many products under one roof make it the one-stop shop for all your needs. But how does it stack up when it comes to your insurance needs?
Costco proudly offers car insurance along with business and home coverage for its members. After all, their customer base is largely homeowners and people running or representing a business. So, it would make sense to team up with American Family Insurance and start dealing in these services. When it comes down to Costco’s car insurance, there are some major pros and cons.
What Policyholders Say Are The Best Part of Costco Insurance
Of course, one of the highly touted praises of Costco car insurance is how convenient it is for members to get. A shopper can get any kind of auto coverage from basic to full insurance at the same time they buy their groceries. Costco car insurance is also known for the following.
Insurance Company Stability
Despite being a relatively new thing compared to most mainstream car insurance providers and companies, Costco sees just as much stability in its business and rates as they do. American Family Insurance has proven to be a great umbrella provider for them after all these years and makes it ideal for long-term policyholders.
Several Available Discounts
Costco knows they are already dealing with their loyal customers when it comes to their exclusive members-only car insurance, so they are generous with discounts. The best part is that Costco stacks its discounts.
Experienced And Personalized Car Insurance
American Family Insurance is a well-established insurance provider. Costco utilizes its services to create a unique one-size-fits-all approach to auto insurance. This helps a lot of their customers and members achieve the perfect level of coverage.
How Happy People Are With Costco Insurance
Shoppers will list the car insurance services as one of the main benefits of being a Costco member. Again, the sheer convenience and prioritization of members are what makes it so successful. Of course, Costco also backs it up with great car insurance products and services like:
- First-time accident forgiveness
- Windshield repairs
- Travel coverage
- Safe driving discounts
- Multiple vehicle discount
- Defensive driving course discount
What Policyholders Say Are The Worst Parts of Costco Car Insurance
Costco car insurance isn’t for everyone –literally, membership with the store is required in order to get their car insurance. While that’s a more general criticism, more glaring ones include the following.
Subpar Claims Processing
Costco insurance doesn’t have the best reviews when it comes to handling and processing claims. There are reports of improper claim handling and the inability to answer some questions. Settlement results also receive criticism from unhappy policyholders at times.
Not For High-Risk Drivers
Young drivers and those with a spotty driving record aren’t entitled to most of the discounts that Costco offers. At the same time, they naturally pay more for car insurance than the average driver. Having coverage with Costco isn’t really economical in cases like this.
Insurance Rates Can Increase After an Extension
An issue that several Costco policyholders report is an increase in rates after they extend their coverage. A lot of drivers tend to save the most on their very first year of coverage rather than down the road when they get insured with Costco.
The Drivers That Benefit The Most From Costco
The only requirement for car insurance from Costco is to have a membership with them. When it comes to driver requirements, there really aren’t any. Any driver can get insurance with Costco; they just have to be willing to accept their one-size-fits-all car insurance. But the ones that benefit the most from it are:
- Safe drivers with little to no markups on their driving history
- Costco members looking for a household policy
- More established drivers
- Business owners looking to insure their fleet
It also helps to look at American Family Insurance and their practices as they are the ones where the insurance is truly coming from through Costco. The only difference is that you will qualify for more discounts when you do it through Costco.
Things to Consider When Getting Car Insurance
Costco is great for the most basic insurance needs of an established driver, along with some specific coverages like the ones previously mentioned. How they underwrite insurance policies is comparable to how others do it. Knowing this, it helps to keep the following in mind when looking for car insurance:
- How much you drive – This also ties into what you use your car for, as it will heavily determine how much you pay for car insurance. It helps to have at least an idea of your annual mileage and report it to your insurer.
- Your credit score – If you have a low credit score, you may be labeled as a high-risk driver, which, as we know, does not mix well with Costco’s car insurance.
- Your Costco membership – If you don’t have a Costco membership yet, think about how it can help you with not just your car insurance but general errands. It may not be worth it to get a Costco card just for their insurance.
Final Thoughts About Costco Car Insurance
Costco’s car insurance is by no means a standard. It’s specifically designed for Costco customers and gives you the necessary insurance to drive legally. Whether or not they are reliable when it comes to providing services involving coverage is debatable and based on individual experiences. However, if you are a long-time Costco customer and a safe driver with an established record, your car insurance may be worth it.
Visit Costco at https://www.costco.com/