Costco is an American multinational corporation that operates a chain of memberships that can be regarded as a warehouse club. In 2020, Costco was ranked as the fifth-largest retailer in the world. In 2021, it came to the 10th position among the Fortune 500 companies. As of March 2022, Costco has 831 warehouses worldwide. 574 of those warehouses are located in the United States alone. Let us know more about “Which Kind Of Insurance Is Cheap On Costco?”.
Does Costco sell insurance?
According to our investigations, Costco sells car and homeowners insurance to members only in at least 44 states across America. Costco underwrites its insurance policies through American Family under the brand name CONNECT.
Of course, Costco auto insurance is considerably cheaper than most of the popular insurance you’d have around. According to American Family claims, Costco members could save up to $581 on auto insurance.
As we examine the two major insurance policies offered by Costco, you’ll have to decide if Costco insurance is meant for you or not.
1. Costco auto insurance
The minimum auto insurance policy at Costco costs $634 per year. This is almost 19% cheaper than average national policy prices. The full-coverage policy costs $1,755, and it’s 15% cheaper than what is sold by average competitors.
Costco auto insurance comes with some benefits for its members.
- Free roadside assistance.
- The option to renew the policy
Other benefits and discounts enjoyed by Costco executive members include
- Safe driving
- Safety features
- Gap insurance
- Rental car reimbursement
- Garaging discount
- Students with good grade discounts.
Costco car cheap insurance coverage includes some basic areas such as bodily injury and property damage, collision, personal injury protection, and so on.
2. Costco homeowner’s insurance
Costco’s homeowner’s insurance is one of the highest-rated in the country. Apart from the perks and discounts attached to Costco homeowner insurance premiums, the average cost for purchasing Costco homeowner insurance is cheaper than most of the national comparative.
The average annual premium is $1,812, which is roughly $585 higher than the national average price of the lowest competitor. An average Costco member can get a good deal on discounts, which makes the price lower for them.
Costco homeowner insurance benefits and discounts include
- Identity theft protection: Members who are victims of identity theft are covered under this benefit to get up to $5,000 in assistance.
- Check fraud and stolen credit card protection: This is a check against any form of unwanted and authorized usage of somebody’s credit card. It helps to provide security against such acts.
- Lock replacement expense protection: Members who suffer theft and intrusion into their homes are covered under these benefits to enjoy returns on lock loss and replacement.
- Food spoilage protection: If you suffer food spoilage in your kitchen as a result of an outage or equipment damage, you could be covered to replenish your stocks.
- Wildfire loss prevention: This benefit is enjoyed by Costco members in states like California, Colorado, Nevada, Arizona, Oregon, and Washington, where they’re prone to fire outbreaks.
Costco homeowners insurance has a reasonable inclusion of basic things members may look out for in the purchase of an insurance policy, including:
- Dwelling coverage: This benefit has to do with repairing or entirely rebuilding your home.
- Loss of use coverage: This protects you from any need to pay for living expenses in case your home becomes inhabitable.
- Personal property insurance: This offers protection for the personal belongings inside your home.
- Personal liability insurance: This covers personal injury and property damage.
Some of the discounts you can have as a Costco homeowner insurance policy holder include
- Age of home
- Claims free
- Protective devices
- Renovation
- Multipurpose
Conclusion
Costco insurance has been rated an average of 4.3 on a scale of 5. Its customer satisfaction level is excellent. The American family’s financial strength and stamina are considerably strong. This gives credence to how much members can trust the company in committing their resources with the hope of being indemnified if they should suffer any loss or damage. On the contrary, the satisfaction rate for claims from members has only been above average.
Frequently Asked Questions
- Is Costco car insurance cheap?
On average, when compared to other national insurance companies, Costco car insurance is cheaper.
- Is Costco CONNECT a good company?
It depends on where you stake your interest. If you’re looking for a company with great customer service and high claims satisfaction, CONNECT comes behind most of its competitors. However, it has more financial supremacy, which gives it the chance of settling claims. Most of its policies also have wider coverage than average competitors.
- Were Ameriprise and CONNECT the same company?
Costco bought Ameriprise in the fall of 2019, and in 2020, it was renamed CONNECT. Therefore, Costco insurance is underwritten by American Family, a subsidiary of CONNECT.
- What kind of insurance does Costco offer?
Costco offers car, homeowner, and umbrella insurance policies under American Family, a subsidiary of CONNECT.
