Costco does not sell car insurance directly, but it offers discounts on policies from other insurers

Costco itself is not an insurance company and does not underwrite or sell car insurance policies. However, Costco members can receive discounted rates through Costco Car Insurance, a program that connects members with insurance carriers. The program is run through a partnership, and Costco does not handle claims, coverage decisions, or policy management — the actual insurance company does.

The discount typically ranges from 10 to 15 percent off standard rates, though the exact amount depends on your driving history, location, and the insurance company offering the policy. You still purchase from and deal with the insurance carrier directly, not from Costco.

Key Takeaways

  • Costco Car Insurance is a discount program for members, not an insurance product Costco sells itself.
  • The program partners with carriers like Nationwide, and you buy directly from the insurance company, not Costco.
  • Discounts typically range from 10 to 15 percent, but vary by location and your driving record.
  • You can also compare rates from other insurers outside the Costco program to see whether the discount is the best deal available to you.

How the Costco Car Insurance discount program works

When you use Costco Car Insurance, you are directed to partner insurance companies that have agreed to offer Costco members a reduced rate. The most common partner has been Nationwide, though partnerships can change. You enter your information on the insurance company's website or call their phone line, get a quote, and if you decide to buy, you sign the policy directly with that carrier.

Costco does not receive your personal information, does not process your payment, and does not handle your policy after purchase. The insurance company owns the relationship with you. If you need to file a claim, change your coverage, or cancel, you contact the insurance company, not Costco.

The discount is applied automatically when you quote through the Costco program link. You do not need to enter a code or take an extra step — the carrier knows you came through Costco and applies the member rate.

What the discount covers and what it does not

The Costco discount applies to the base premium for the coverage you choose — typically liability, collision, and comprehensive. It does not reduce deductibles, change what the policy covers, or add coverage you would not otherwise have. A $500 deductible remains $500 whether you buy through Costco or directly.

The discount also does not stack with other discounts the insurance company offers. If you are already getting a discount for bundling home and auto insurance, or for a clean driving record, the insurance company will apply the larger of the two discounts, not both. Ask the carrier during your quote whether the Costco discount will combine with discounts you already have.

Comparing Costco rates to other insurers

A 10 to 15 percent discount sounds significant, but it only matters if the base rate is competitive to begin with. An insurer with a high standard rate can offer a large discount and still charge more than a competitor with a lower standard rate and no Costco partnership.

The best approach is to get quotes from at least three insurers outside the Costco program — companies like State Farm, GEICO, Progressive, or regional carriers in your state — and compare the final price after any discounts they offer. Many insurers offer discounts for bundling, good driving records, safety features, or completing a defensive driving course. Add those to the base rate and compare the total.

If the Costco-partnered carrier's final price is lowest, use it. If another insurer is cheaper, buy from them. The Costco membership benefit is the discount opportunity, not a may provide that you will save money overall.

How to access the Costco Car Insurance program

Log into your Costco.com account and look for the Insurance section, or ask at the membership desk in your warehouse. Costco provides a link to the partner insurance company's quote tool. You can also call the insurance company's phone number directly if Costco provides it.

You must be a current Costco member to receive the discount. If your membership has expired, renew it before quoting. The discount applies only to new policies or when you switch carriers — it does not apply if you are renewing with your current insurer unless that insurer is part of the Costco program.

When the Costco discount might not be the best option

If you have a complex insurance situation — multiple vehicles, a teenage driver, a recent accident, or a home you want to bundle — you may get a better rate from an insurer that specializes in your situation or offers more aggressive bundling discounts. Some regional carriers also offer rates lower than national companies in specific states.

If you are happy with your current insurer and have a good rate, switching just for a 10 to 15 percent discount may not be worth the hassle of changing payment methods, updating your vehicle registration, and learning a new company's claims process. Calculate the annual savings and decide whether it justifies the switch.

Frequently Asked Questions

Can I use the Costco discount if I already have car insurance?

Yes, but only if you switch to the Costco-partnered carrier. The discount does not apply to your existing policy with another insurer. You would need to cancel your current policy and start a new one with the partner company. Check your current policy's cancellation terms — some charge a fee if you cancel before the renewal date.

Does Costco Car Insurance cover roadside assistance or rental cars?

Those are optional add-ons offered by the insurance company, not included automatically. When you quote, you can choose to add roadside assistance, rental reimbursement, or other coverage for an extra cost. The Costco discount applies to the base premium, and you pay the standard price for any extras you add.

What happens to my Costco discount if I let my membership expire?

Your policy continues, but you lose the discount on future renewals. When your policy comes up for renewal, the insurance company will charge the standard rate unless you renew your Costco membership before the renewal date. If you rejoin Costco, you can request a new quote at the member rate.

Is the Costco Car Insurance program available in every state?

The program is available in most states, but not all. Availability depends on which insurance companies partner with Costco in your state and which states those companies are licensed to sell in. Check Costco's website or call the partner carrier to confirm whether the program is available where you live.