When you think of bulk retailers, one of the main competitors that will come to mind is surely Costco, and for good reason. They are unique in their own right because they give homeowners and business owners the ability to purchase name-brand goods in bulk and at a price that is deemed mostly affordable.
With that being said, they not only specialize in retail but also insurance, such as auto insurance. Operating under the umbrella of Ameriprise Auto & Home Insurance, Costco Auto Insurance is available only to Costco Members and gives you the ability to make sure you’re protected while driving no matter where you are located in the United States.
Hopefully, with the help of this Costco Auto Insurance review, you will be able to determine if they are the best insurance provider for your needs.
Costco Auto Insurance Review
The Pros of Costco Auto Insurance
Even though Costco Auto Insurance may not have been around for as long as other competing providers, it surely offers optimal service when compared to companies that cater to more high-risk drivers. Some of the most notable advantages of having your auto insurance from Costco include:
- High Level of Long-term Stability
One of the most important things to think about when you’re shopping for auto insurance is to make sure that you’re signing with a company that has the stability to last over the entire length of your term. There’s nothing more frightening than opting for insurance with a company who may never be able to pay your claims or ensure that you’re covered in the future.
With Costco car Insurance, their long-term stability is rated as excellent, which is comforting for people who are looking for a long-term relationship.
- Ample Discounts to Take Advantage Of
If you’re someone who is looking for ways to save as often and as much as possible, especially if you’re a good driver, you’re going to surely appreciate the number of discounts that Costco Auto Insurance has to offer.
Not only will you have the ability to pick from plenty of discounts, but you’ll also be able to stack discounts so you can cut even more costs off your premium.
- Unique Coverage
Instead of taking a one-size-fits-all approach to the policies that they have to offer, Costco’s insurance for drivers takes a unique approach to make sure that you have access to the perfect level of coverage.
This could be attributed to the fact that their policies are offered through Ameriprise, which is a reputable and experienced insurance provider.
What Does Costco Auto Insurance Offer?
There are plenty of interesting things to think about when reading through a Costco Auto Insurance review, including items that you’ll be able to take advantage of when it comes to opting to sign up for coverage, including:
- Plenty of Different Types of Coverage
There are several different coverage options open to all members including comprehensive, collision, bodily injury liability, property damage, uninsured and underinsured motorists, and more.
- Accident Forgiveness
Though it isn’t classified as a discount, with accident forgiveness, you can surely save a lot of money in the long run if you’ve been a customer for more than three years. When or if your first at-fault accident occurs, you won’t be charged extra for being at-fault, thanks to accident forgiveness.
- Windshield Repair
In the event that your windshield is damaged and doesn’t need to be replaced, Costco will handle the repair and waive your deductible. This is an automatically free feature that you’ll receive in any policy that you choose from their auto insurance.
- Accident Travel Coverage
Another fantastic feature included with some policies is accident travel coverage, which is quite useful for drivers who always find themselves away from home. If you find yourself over 100 miles away from home and you have to tow your vehicle to a mechanic, Costco will help to pay for any out-of-pocket expenses relating to your accommodations or travel as a result of your car issues.
- Discounts for Safe Driving
Most of the high-quality insurance providers in the United States help safe drivers by offering a safe driving discount, as does Costco. If you aren’t in an accident for three years, you’ll get a discount. If you continue to be accident-free for six years, you’ll receive an additional discount.
- Other Discounts
There are plenty of other ways for you to save through Costco Auto Insurance, which can make them a more preferable option for people who are looking for an affordable plan. You can take advantage of a defensive driver discount if you take an approved course with your DMV.
Additional discounts are available for insuring multiple vehicles, safe driving, and having multiple policies through Costco.
You’ll also be able to receive a loyalty discount if you insure both your car and home through Costco. Students under the age of 25 will get a discount if they maintain an average of “B” or better while at school. Individuals who have been a member for more than three years will get lower rates too.
A few of the other discounts available through Costco Car Insurance include multi-car discounts, education discounts, and student away discounts.
Costco Auto Insurance: Things to Think About
As with any type of insurance company, there are downfalls to take under advisement before you decide to sign up for one of their policies. Although Costco Auto Insurance offers plenty of great ways to save and make the most out of your policy, there are several disadvantages that customers noted. These include:
- Poor Claim Handling
Customers found that when it came time to submit their claims with the help of a claim adjuster, it was handled poorly. Either the claim was denied entirely, the claim adjuster handled them improperly, or they experienced an ample amount of poor responses as a result of any questions they had.
Another concern that some customers had was that they would receive a poor or unsatisfactory offer or settlement in the event of an accident where they were found to be not at fault.
- Best for Safe Drivers
If you’re someone who has a poor driving record, you’ll want to second-guess signing with Costco as the vast majority of their discounts and advantages are only applicable to people who have a spotless driving record for three or more years. In fact, if you have a spotty record, it’s quite likely that you’ll have your application denied.
- Increased Insurance Rates
One of the largest issues that policyholders noted about their insurance is that the rates would rise drastically after they have extended their coverage. You may also find that the customer service is rather lacking, and that’s on top of the slow claim processing.
Costco Car Insurance Quote
In order to get a Costco car insurance quote or to find out Costco car insurance rates, you need to have a valid Costco membership.
Costco members get an exclusive discount on Ameriprise auto insurance.
According to Nationwide savings data, new Costco auto insurance policyholders saved an average first-year savings of $575.45 in their first year after switching to a Costco auto insurance policy.
Costco Car Insurance Reviews: Final Thoughts
Apart from the complaints from customers pertaining to the slow processing times for claims, increased rates after extending coverage, and having to push for claims to be processed at all, Costco Car Insurance can be a good option for safe drivers.
There are plenty of financial benefits to take advantage of, and you get an immediate discount if you’re a Costco Member beforehand. We also found that their coverage is best for students who are looking for affordable plans with a more-than-sufficient amount of coverage based on the average customer Costco Auto Insurance review.