Does Costco Sell Car Insurance, and What Are Your Other Options

Costco does not sell car insurance directly, but it offers discounted rates through partner insurance companies

Costco itself is not an insurance company and does not underwrite or issue car insurance policies. However, Costco members can access discounted car insurance rates through Costco's partnership with Costco Insurance Services, which connects members to third-party insurers. The insurers behind these discounts vary by state — some states offer Costco members rates through national carriers, while others have regional partnerships. You would purchase the actual policy from the insurance company, not from Costco.

The discount structure works like this: Costco negotiates group rates with insurance partners, and members can then contact those companies directly to get a quote. The discount applies to your premium if you choose to buy through that partner. Costco does not handle claims, policy changes, or customer service — the insurance company you select does all of that.

Key Takeaways

• Costco partners with insurance companies to offer discounted rates to members, but Costco itself does not sell or manage the policies.
• The specific insurance companies available through Costco vary by state, so the discount partners in California may differ from those in Texas.
• You contact the insurance company directly to buy a policy, make changes, or file a claim — not Costco.
• Costco membership is required to access these discounted rates, and you must mention your membership when you request a quote.

How to find Costco's insurance partners in your state

Costco publishes a list of its insurance partners on the Costco website under the Insurance Services section. You can search by your state to see which companies offer discounted rates to Costco members in your area. The list shows the partner company name and usually a phone number or link to request a quote.

When you contact a partner company, have your Costco membership number ready. The insurance company will verify your membership status before quoting you the discounted rate. If you are not yet a Costco member, you would need to join before you can access these discounts.

What discounts typically look like through Costco partnerships

The discount amount varies by insurance company and state. Some partners offer a flat percentage off your premium — for example, 10 to 15 percent — while others structure discounts differently depending on your coverage choices and driving history. The insurance company will show you the discounted rate when you request a quote.

These discounts are separate from other discounts the insurance company may offer, such as discounts for bundling home and auto insurance, paying in full, or having a clean driving record. You may be able to stack some discounts, but the insurance company determines which ones combine and which do not.

Comparing Costco insurance rates to other options

The only way to know whether a Costco partner's rate is competitive is to get quotes from other insurers as well. Insurance premiums depend heavily on your age, driving history, location, vehicle type, and coverage choices — not just on whether you have a Costco membership. A Costco discount might save you money, or a different company's standard rate might be lower even without a membership discount.

Many people compare rates by contacting three to five insurers directly or using online quote tools that pull rates from multiple companies at once. This takes 15 to 30 minutes but shows you the actual range of prices available to you. A Costco partner's discounted rate should be one of the quotes you compare, not the only one you consider.

Other Costco insurance services beyond car insurance

Costco's insurance partnerships extend beyond auto insurance. Members can also access discounted rates for home insurance, renters insurance, and life insurance through different partner companies. Each type of insurance has its own set of partners, which may or may not be the same companies that offer car insurance discounts in your state.

Like car insurance, you purchase these policies directly from the insurance company, not from Costco. Costco's role is to negotiate the group discount and provide you with the contact information for the partner companies.

What happens if you already have car insurance and want to switch

If you currently have a car insurance policy with another company, you can request a quote from a Costco partner at any time. There is no penalty for switching insurers mid-policy — you straightforward buy a new policy with the new company, and it becomes effective on a date you choose. Your old insurer will refund any unused premium for the remainder of your current policy term.

Before you switch, make sure the new policy covers everything your current policy does. Review the coverage limits, deductibles, and any add-ons you currently have. Some insurers offer features or discounts that others do not, so the lowest price is not always the best choice if it means losing coverage you need.

Frequently Asked Questions

Do I have to be a Costco member to get these insurance discounts?

Yes, you must have an active Costco membership to access the discounted rates through Costco's insurance partners. When you request a quote, you will need to provide your membership number so the insurance company can verify your status.

Can I buy car insurance directly from Costco?

No. Costco negotiates discounts with insurance companies but does not sell policies itself. You purchase the actual insurance from the partner company and work with them for all policy matters, claims, and customer service.

Are Costco insurance discounts available in every state?

Costco has insurance partnerships in most states, but the specific companies and discount amounts vary by location. Check the Costco website or call Costco Insurance Services to see which partners operate in your state.

What if the Costco partner's rate is higher than another company's rate?

You are not required to buy from a Costco partner. The discount is an option available to you, but you can purchase car insurance from any licensed insurer. Getting quotes from multiple companies helps you find the lowest rate for your situation.

Do Costco insurance discounts combine with other discounts from the insurance company?

Some discounts stack, and some do not — it depends on the insurance company's rules. When you get a quote, ask the company which of their other discounts (bundling, safe driver, paying in full, etc.) can be combined with the Costco member discount.