Costco car insurance is powered by Connect from America’s Family. Costco members can get special discounts through Connect, but you don’t have to be a Costco member to buy a policy from Connect.
Costco car insurance provides standard coverage options and endorsements that you can add to your policy.
According to Costco’s website, more than 400,000 members have switched their auto insurance to Connect.
Costco auto insurance policies are available in 44 states and Washington, D.C., and some fees and discounts are subject to state availability.
Some Closer look
Liability insurance covers two parts – bodily injury and property damage. If you cause an accident, liability insurance pays the other driver for their losses and covers damage to the vehicle. Liability insurance also pays for your legal defence costs if you are involved in a lawsuit. Many states need drivers to hold a lesser amount of liability insurance.
Comprehensive insurance pays to repair your car in the event of damage from a non-collision accident. For example, comprehensive insurance covers frost damage, theft, vandalism, falling objects and accidents with animals. The maximum payment for comprehensive and total insurance is the cash value of your car. If you have to claim, your insurance check will be reduced by the deductible amount.
As the name suggests, collision insurance pays for repairs after a car accident, regardless of fault. It also includes accidents with stationary objects such as telephone poles or trees.
Collision and comprehensive insurance are available together as part of a full coverage policy. This policy is usually mandatory, but you may need to buy it if you lease or finance your car. As with comprehensive coverage, the maximum payout for collision insurance is the total value of your car, minus deductibles.
The medical benefits portion of the policy pays for your medical expenses if a family member or passenger in your vehicle is injured in an accident. It covers expenses such as ambulance, X-rays, prescription drugs, surgery and rehabilitation. Medical bills insurance is included with full coverage policies and has no deductible.
Uninsured motorist insurance
Uninsured motorist coverage is required in some states and mandatory in others. If you are hit by an uninsured driver or do not have enough insurance to cover your loss, an uninsured/underinsured driver will provide additional coverage for you and your passengers. In some states, you can buy coverage for damage to an uninsured motorist’s vehicle.
Personal Injury Protection (PIP) is mandatory coverage in no-fault situations. This policy pays your medical bills if you are injured in an accident, regardless of which driver caused the accident. It also covers injuries to passengers riding in your car. PIP is often available as a supplement for extra protection if you live in a bad situation.
Car insurance against attachments
Combined car insurance has a slightly higher complaint rate than the industry average. While this shouldn’t stop you from buying a Costo car insurance policy from Connect, it’s important to know that many competitors have lower complaint rates.
Does Costco Car Insurance Cover Accidents?
Costco members can get no-accident car insurance through Connect. Accident forgiveness waives your first accident, so your premium won’t change. However, once you have a clean driving record and claim a certain amount of history, you are only eligible for accident forgiveness.
Costco Offer Gap Insurance
Gap Insurance is available through American Family Connect. This cover only applies to drivers who lease or finance their cars. If your car is totalled, gap coverage will pay the difference between the pre-accident value of your car and the remaining balance on your car loan.
Gap Insurance from Connect covers up to 120 per cent of the value of your car. All gap insurance policies from Costco include new car replacements and additional coverage for the first year of ownership.
Costco Executive Member Car Insurance Benefits
Costco Executive members receive the following additional services, but availability may vary by state:
Lifetime Renewal: You can get a lifetime renewal of your car insurance policy if there are no major changes in the condition of your car and you have paid your premium on time unless there are major derailments.
Roadside Assistance: Pay $75 for service to get you back on the road if you have a flat tire, run out of gas, or charge your battery.