Costco does not underwrite auto insurance. The Costco Auto Insurance Program is written by American Family (formerly CONNECT) and requires a Costco membership.
Costco does not sell insurance itself. What members buy is the Costco Auto Insurance Program, underwritten by CONNECT — a business that began operating under the American Family name at the end of 2025 — and available only to Costco members, so here is an independent look at the program, its estimated rates, and how it compares in 2026.
The Costco Auto Insurance Program is a membership benefit rather than an insurance company. Costco licenses its brand and its members get access to the program, but the policies are underwritten, priced, and serviced by CONNECT, which began operating under the American Family name at the end of 2025 — a change of brand only, leaving the underwriting companies, pricing, coverage, and benefits unchanged for existing policyholders. A paid Costco membership is required to buy, and Executive members typically see additional program benefits. The most important practical detail is footprint: the program is not writing new policies in California or Florida, and it is unavailable outright in Alaska, Louisiana, Maine, North Dakota, Wyoming, and West Virginia — so in a meaningful share of the country the question is not price but whether it will quote you at all.
Independent market estimates based on NAIC rate filings and state insurance department data. Not provided by or endorsed by Costco. Actual rates vary by state, ZIP, and individual profile.
| Driver profile | Est. annual premium | vs. market avg. | Notes |
|---|---|---|---|
| Clean record, 30–45 | ~$1,410/yr | Below avg. | Member pricing is the main draw |
| Single accident (3 yrs) | ~$2,020/yr | Near avg. | Standard-market surcharge |
| DUI on record | ~$3,020/yr | Near avg. | May decline higher-risk drivers |
| Young driver (18–24) | ~$2,720/yr | Below avg. | Good-student discount available |
| Senior driver (65+) | ~$1,330/yr | Below avg. | Competitive for low-mileage drivers |
| Lower credit tier | ~$2,180/yr | Near avg. | Credit scoring applies where legal |
ⓘ Source: NAIC filings and state regulatory data. Not quotes from Costco. Verify pricing directly with the carrier or a licensed agent.
The Costco program is a good illustration of why it pays to look past the brand on the envelope. Costco's role is to license its name and gate access behind membership; the company that actually underwrites the policy, sets your rate, and pays your claim is American Family, operating the book formerly branded CONNECT until the end of 2025. That is a reassuring answer — American Family is an established national carrier — but it means Costco reviews are really American Family reviews, and the December 2025 rebrand makes older write-ups hard to read without knowing that. On price, the program generally does well for clean-record drivers, and Executive members pick up extra benefits, so for an existing member the membership fee is already sunk and the value proposition is straightforward. Availability is the real constraint. New business is closed in California and Florida, and the program does not operate at all in six more states, so a large number of shoppers will find the answer is simply no. Confirm it writes in your state before you spend time on a quote.
The Costco Auto Insurance Program is worth a quote if you already hold a Costco membership, live in a state where it is writing new business, and have a clean record. Remember that you are buying an American Family policy, so weigh that carrier's service and claims record rather than Costco's retail reputation. Comparing the program against other carriers in your area will show where it lands for your profile.
Disclaimer: RateWire is an independent lead generation and comparison service and is not affiliated with, authorized by, endorsed by, or in any way officially connected to Costco. All carrier names and trademarks are the property of their respective owners used solely for informational and comparison purposes. Rate figures are independent market estimates from publicly available NAIC and state regulatory data — not quotes from Costco. By submitting your ZIP code, you may be connected with licensed insurance agents or carriers who will provide actual quotes based on your individual profile. Always verify coverage terms and pricing directly with the carrier or a licensed agent before purchasing.