Costco offers several types of insurance to members, mainly through partner companies: auto and home insurance via CONNECT by American Family, health and supplemental benefits via a separate marketplace, and term life insurance via Protective Life. For most people, Costco insurance is appealing for its member-only discounts and convenience, but it is still essential to compare quotes because cheaper isn’t guaranteed in every case.

What is “Costco insurance”?

Costco itself is not an insurance company; it partners with established insurers and markets those products to members, often with special pricing or perks. The main categories are:

  • Auto and home (including renters) through CONNECT, powered by American Family Insurance
  • Health, dental, vision, and some supplemental lines via a dedicated member marketplace
  • Term life insurance under the Member Advantage Life branding via Protective Life

These partner products are usually branded around Costco and positioned as membership benefits rather than stand‑alone retail offerings.

Auto and home insurance

Costco’s flagship insurance offering is auto and home coverage for members, administered by CONNECT (American Family). Key points commonly highlighted by reviewers and Costco’s own marketing include:

  • Potential first‑year savings for members compared with prior carriers, sometimes in the several‑hundred‑dollar range, depending on driving record and location
  • Member‑only extras such as deductible waivers for repairable windshield damage and certain travel‑related accommodations if an accident happens far from home
  • Typical auto protections (liability, collision, comprehensive, rental reimbursement) and home coverages (dwelling, personal property, liability) similar to major national brands

However, forum and review chatter shows that some drivers see extremely competitive rates while others find quotes higher than regional insurers or online direct players, so shopping around remains important.

Life and health options

Costco’s term life insurance is offered as “Member Advantage Life” by Protective Life, with standard term lengths (for example, 10–30 years) and coverage ranges suitable for many households. Features often emphasized include:

  • Member‑only pricing with a structure where premiums are lower for the first years of the term before stepping up to more typical market levels later
  • Access to riders such as terminal illness accelerated death benefit and optional child or accidental‑death coverage, depending on state availability

For health and related benefits, Costco directs members to a dedicated marketplace that can show medical, dental, vision, and other benefit options, run by a third‑party benefits administrator rather than Costco itself. These platforms function more like comparison and enrollment sites than single‑carrier products.

How to decide if Costco insurance is worth it

Whether Costco insurance is “good” depends heavily on your profile, location, and priorities.

Consider:

  • Price: Compare Costco‑partner quotes to at least two other insurers for the same limits and deductibles
  • Value: Weigh member perks and coverage extras (like glass deductible waivers or included riders) against any price differences
  • Convenience and trust: Some members like managing several financial products through a brand they already use for shopping and fuel

If a Costco quote is similar in price to competitors but includes extra benefits and you already maintain a membership, it can be a solid, practical choice for bundling your coverage.

Information gathered from public forums or data available on the internet and portrayed here.