Costco does not sell car insurance directly, but it offers discounted rates through partner insurers
Costco itself does not underwrite or sell car insurance. Instead, the warehouse offers discounted rates on policies sold by Amerisafe, Amica Mutual, and Costco Insurance Services (which partners with third-party carriers). The discounts are available only to Costco members, and you purchase the actual policy from the insurance company, not from Costco.
The discount structure varies by state and by which insurer you choose. Some Costco members report savings of 10 to 15 percent compared to standard rates, though the actual discount depends on your driving history, location, and the coverage you select. Not every insurer offers the same discount to Costco members, and availability changes by region.
Key Takeaways
- Costco partners with specific insurers to offer member discounts, but you buy the policy directly from the insurance company, not from Costco.
- The discount amount varies by state, insurer, and your personal risk profile, so comparing quotes is necessary to see your actual savings.
- You can find Costco's insurance partners through the Costco website or by calling your local warehouse, and most partners allow you to quote online.
- Costco membership is required to receive the discount, and the discount applies only to the policy holder listed on the membership account.
How to find Costco's car insurance discounts
Visit the Costco website and look for the "Insurance" section, usually found under "Services." From there, you can see which insurers offer discounts in your state and get a link to their quote tool. You can also call your local Costco warehouse and ask which car insurance partners are available in your area.
When you click through to the insurer's website, you will enter your information and receive a quote. The Costco discount is typically applied automatically if you are logged into your Costco membership account or if you provide your membership number during the quote process. Some insurers require you to mention the Costco partnership explicitly to receive the discount.
Which insurers partner with Costco
Amerisafe is one of the most widely available Costco partners and operates in most states. Amica Mutual also offers Costco member discounts in many regions. Costco Insurance Services acts as a broker and connects members with various carriers depending on location.
The specific insurers available to you depend on your state. California, Texas, and New York may have different partner options than smaller states. Call your warehouse or check the Costco website to see which companies serve your area. Availability can change, so it is worth checking annually when your policy renews.
What the Costco discount actually covers
The Costco discount applies to the same coverage types any car insurance policy offers: liability, collision, comprehensive, and uninsured motorist protection. The discount percentage is applied to your premium after you have selected your coverage levels and deductible. It does not change what the insurance covers or how claims are handled.
The discount is a member benefit only. If your Costco membership expires or is cancelled, you lose the discount on renewal. If you add a household member to your policy who is not on your Costco membership, that person's portion of the premium may not receive the discount.
How Costco insurance discounts compare to other ways to save
A Costco discount is one tool among several. Many insurers offer discounts for bundling home and auto policies, maintaining a clean driving record, paying in full rather than monthly, or completing a defensive driving course. Some offer discounts for low mileage, good grades (for young drivers), or safety features in your vehicle.
The Costco discount does not stack with all other discounts, and different insurers combine them differently. Before committing to a Costco partner insurer, get quotes from at least two or three other companies without the Costco partnership to compare your total out-of-pocket cost. A smaller discount from a Costco partner might be outweighed by a larger multi-policy discount elsewhere.
When the Costco discount might not be the best option
If you do not have a Costco membership, the discount is not available to you, and the cost of membership may not be worth it for insurance savings alone. Costco membership costs $60 to $130 per year depending on the tier, so you would need to save at least that much on your insurance premium to break even.
If you have a complex insurance situation—multiple drivers, a teenage driver, or a history of accidents or violations—the Costco partner insurers may not offer the best rate for your specific profile. Specialty insurers that focus on high-risk drivers sometimes offer better pricing than mainstream carriers, even with a membership discount.
How to switch to a Costco insurance partner
Get a quote from the Costco partner insurer you are interested in. Once you have a quote and have decided to switch, you can purchase the policy online or by phone. The new insurer will handle cancelling your old policy or coordinating the switch, though you can also cancel your current policy yourself to avoid overlap.
Make sure your new policy's start date is the same day your old policy ends, or one day after, to avoid a gap in coverage. A gap in coverage can affect your rates and is illegal in most states. Once the new policy is active, you will receive your declarations page and policy documents from the new insurer.
Frequently Asked Questions
Do I need to be a Costco member to get the car insurance discount?
Yes. The discount is a member benefit only. Your Costco membership must be active and in your name to receive the discount on your policy. If your membership expires, you lose the discount at your next renewal.
Can I use the Costco discount if I buy insurance for a family member?
Only if that family member is on your Costco membership account. If you are buying a policy for someone else who has their own membership, they would need to purchase the policy themselves to receive the discount under their membership.
Is the Costco insurance discount the same in every state?
No. The discount amount, the insurers available, and the coverage options vary by state. Some states have only one or two Costco partner insurers, while others have more options. Check the Costco website or call your warehouse to see what is available in your state.
What happens to my Costco insurance discount if I move to a different state?
Your current policy will remain active until renewal. At renewal, you will need to get a new quote in your new state, as the available insurers and discount amounts may be different. Contact your insurer or Costco to find out which partners serve your new location.
Can I combine the Costco discount with other insurance discounts?
It depends on the insurer. Some allow you to stack the Costco discount with other discounts like bundling or safe driver discounts, while others do not. Ask the insurer directly when you get your quote to see which discounts can be combined.