This News Story Convinced Me Not to Cancel My Costco Membership

I live 7.3 miles away from my nearest Costco. However, I live in a college town, where thanks to traffic and what feels like a million students crisscrossing the street at any given time, it typically takes between 20 and 25 minutes to drive that 7.3 miles. For the past few months, it's felt nearly impossible to carve out time to make a Costco run, and I've begun to wonder if I should cancel my membership before it renews. I tell myself that it won't be forever -- just until I can find the time to do some in-person shopping.

At least, that's what I was thinking early last week. And then, as I researched grocery prices for another story, I ran across an article that scared me straight. Reading it was enough to send me down a rabbit hole, looking for others. The subject of each article involves which products are expected to become more expensive in 2024 and why.

What I read convinced me that now is no time to cancel my Costco membership. (By the way, I would feel the same way if we still had a Sam's Club membership.) Here's what I found.

Some meat may become pricier

An excellent article in DealNews explained why the price of pork may be on its way up this year. It can be traced back to California's Proposition 12, a law that mandates larger (more humane) housing spaces for pigs, cows, and chickens. Farmers must either come up with the money to make their barns larger, or they'll have to raise fewer pigs. Either way, there will likely be a cost to the consumer.

According to Statista, California is not even in the top 10 pork-producing states, but any shake-up in the supply chain can lead to price spikes.

Another article -- this one from Gro Intelligence -- talks about the shrinking cattle herd in the U.S. The combination of greater demand for beef and fewer cattle going to slaughter signals that beef prices will likely increase.

Where Costco comes in: We don't typically buy beef, but paying more for pork will sting. I need to hold onto our Costco membership to have access to lower pork, fish, and poultry prices.

The cost of shipping is about to increase

I jump through hoops to avoid paying shipping costs when I shop online. However, even if shipping is advertised as free, it's still built into the price I pay for online purchases. According to the USPS, here's how much shipping costs increased on Jan. 21, 2024:

Where Costco comes in: So far, by ordering nearly everything I need online, I've gotten by. If higher shipping rates impact the prices of the everyday items I order online, it would be silly to cut off my access to Costco.

Car insurance companies face tough times

The cost of auto insurance has outpaced overall inflation lately, which will likely continue. Here's why: The increased labor costs and expensive repairs that came into play during the pandemic have hung on for dear life. Simply put, it costs an insurance company more to get its policyholders back on the road than it did before COVID-19. And the more an insurer pays for repairs, the less it profits.

In addition, climate change has led to some gnarly severe weather, and when the weather gets bad, there's an increase in vehicle damage and auto accidents. The situation has become so dire that some insurance companies have moved out of states with a higher-than-usual number of claims.

Where Costco comes in: One Costco benefit that I've never taken advantage of is a member discount on auto and homeowners insurance through CONNECT, part of American Family Insurance. I've had nothing but good experiences with American Family in the past, and I like the idea of access to Costco's discounted rates.

Health insurers are feeling the heat, too

Like auto insurers, health insurance companies have spent recent years dealing with higher supply and labor costs. Today, experts suggest that the cost of employer-sponsored health insurance could jump by as much as 6% to make up for higher costs.

Where Costco comes in: Now is not the right time for me to give up on Costco pharmacy discounts. Thanks to our Costco membership, we can save up to 80% of a whole list of prescription medications.

Of course, it's possible that none of these price hikes (other than shipping costs) will occur. However, what I realized as I doom-scrolled through personal finance articles last week is that now is not the time to let go of potentially deep discounts.