Should I Get Insurance Through Costco?

It seems as if Costco sells everything, but is insurance a good buy?

Have you ever thought about getting your insurance through Costco? If not, you may want to give it some serious consideration. Costco is one of the most popular membership warehouse clubs, well-known for its bulk buys and cheap prices. Costco offers a variety of insurance products, including car, home, and renters insurance. So, should you get your insurance through Costco? Here are three reasons you may want to get insurance through the popular retailer.

1. Costco has a wide range of benefits

Costco offers auto, home and condo, renters, umbrella, specialty, and business insurance through CONNECT, which is backed by American Family Insurance. Costco Executive Members receive exclusive benefits such as:

• Roadside assistance that covers up to $75 per occurrence for your car.
• Lifetime renewability for your auto insurance policy as long as you are a Costco Executive Member.
• Reimbursement for glass repair on your home up to $1,000 toward the cost of the replacement or repair to the window. 
• Home lockout assistance where you receive 24/7 service if you get locked out of your home up to $100 per occurrence, limited to two claims every 12 months.  

Costco also offers additional benefits such as identity theft protection, refrigerated property coverage, equipment breakdown, and more. Depending on where you live, you can choose your own licensed repair facility if your car needs to be fixed. Costco also offers business health insurance, term life insurance, and pet insurance. 

2. It offers generous discounts

According to Costco's website, Costco members reported saving an average of $587.17 in the first year by switching to CONNECT. When you buy your insurance through Costco, you'll be eligible for a variety of discounts that will help lower your monthly premium. In addition, if you have more than one policy with the company, you'll receive an even bigger discount. 

Auto insurance discounts include good driver, premier safety, discounts for safety features, and much more. For a homeowners policy, it offers discounts for newly built homes, being claims-free, and for protecting your home. 

3. Client satisfaction

If you've ever had to deal with your insurance company's customer service department, then you know how frustrating it can be. According to Costco's website, 89% of Costco members who purchased insurance from CONNECT reported they were highly satisfied with their service. 

In addition, 9 out of 10 Costco members renew their policies. Having a high rate of renewals is a good indicator of client satisfaction. Costco's insurance is also easy to buy. You can buy online or in person at one of Costco's warehouses. And if you have any questions, you can call customer service for help and answers.

Cons of Costco insurance

One downside to Costco's insurance is that it may not be available in your area. So, before you buy insurance through Costco, make sure it's available in your area. Also, some people find that the customer service at Costco can be frustrating at times. While Costco reports a high number of members who are satisfied, American Family's National Complaint Index Report is 1.31, which is 30% higher than the market. 

All in all, there are plenty of reasons to consider getting your insurance through Costco. With a wide range of plans to choose from, exclusive benefits, and generous discounts, it should definitely be at the top of your list.