Costco Auto Insurance Review
Costco insurance is offered exclusively to Costco members and is provided by Ameriprise Auto & Home Insurance, which is a subsidiary of Ameriprise Financial.
Costco Auto offers discounts to its members on Ameriprise’s policies.
Find out everything you need to know about Costco Auto Insurance in this complete review:
Table of Contents:
Costco Auto Insurance Policies
Ameriprise auto insurance offers several insurance coverage options for Costco members to build a policy that provides the best coverage to suit their needs.
Here are just a few of the insurance products offered by Ameriprise:
Costco’s comprehensive coverage pays for repairs needed after any non-collision damage is incurred on an insured vehicle and includes damages caused by vandalism, fire, and acts of nature.
Roadside Assistance & Towing
Under this plan, policyholders who experience mechanical or other inconvenient issues while traveling with their vehicle are covered for services that include tire changes or repairs, battery boosts, flat tire or replacement, and even assistance with unlocking the vehicle.
This plan also offers lifetime renewability. As an added bonus, there is a rental car reimbursement policy, ensuring your rental car will be paid for while your vehicle is being repaired.
Property Damage Insurance
If an insured driver is found at fault after a collision, this auto policy covers the cost of repairs to the other motorist’s property.
This insurance covers any price disparity between your car loan/lease amount and the value of your car at the time of an accident.
PIP (Personal Injury Protection) Insurance
If a driver, passenger, or pedestrian suffers bodily injury or killed in an accident, PIP Insurance pays for the cost of medical treatment, lost wages, loss of services (such as childcare expenses), and funeral expenses.
How Much Does Costco Car Insurance Cost?
Car insurance companies will have insurance quote price differences that may vary based on factors such as the make and model of the vehicle; the age, gender, safety features, and driving record of the policyholder; and the geographic location.
We frequently are asked, ‘Does Costco actually have good deals on auto insurance?‘
For comparison sake, when reviewing pricing we’ve used the following scenario:
- Single Male (licensed 9 to 15 years): One car (Toyota Camry), no violations, driving around 12,600 to15,000 a year, living in San Francisco County, California.
In this scenario, IDS Property Insurance Casualty Company, a subsidiary of Ameriprise Car Insurance, which writes policies for Costco Auto, is priced at $1,490, which is slightly higher than the median quote of $1,278.50. IDS does come in $100 less than Liberty Mutual but is almost twice the amount of USAA.
If we keep this scenario to involve the same single male driving a Toyota Camry but change his location to Long Beach in Los Angeles, the price quoted by IDS drops to only $1,058, and if we keep it the same and add in a single traffic ticket, the quoted price jumps to $2,354.
Here, we see the difference just one factor can make and how important rate comparisons can be when considering Costco Auto insurance.
Any time you are quote shopping insurance rates, be sure to ask if the car insurance quote can be lowered by discounts. Most auto insurance companies, such as Geico and Allstate, in the United States, offer various driving discounts.
While Costco does offer discounts on auto insurance there are a number of factors you need to beware of Costco discount auto insurance.
Ameriprise car insurance is no different. In fact, it is quite competitive and offers several benefits and discounts, accident forgiveness (protecting otherwise safe drivers from an unfortunate premium hike) and free auto glass repair to name a few.
Here is a list of other discounts Costco Car Insurance offers:
- Student Discount: Ameriprise offers a few different discounts that fall under the student discount section. If you have a student residing in your home that travels more than 100 miles to school or does not have access to a car, you will receive a discount. Also, if you have a student under the age of 25 that maintains a “B” average in school, Ameriprise will also reduce your rate. Lastly, should you have a family member who has completed four years of postsecondary education, you are eligible for this discount.
- Safe Driving Discount: If you are proactive and take a defensive driving course or have not had an accident within three consecutive years, you are eligible for this driver discount.
- Longevity Discount: As it sounds, if you are a long time client (three years) you may receive this discount.
- Bundling Discount: Look into purchasing multiple cars or multiple types of insurance (home, auto, life insurance, and renters) to receive a discounted rate across all insurance premiums.
- Safety Feature Discount: Newer cars come with various new safety features such as upgraded technology, anti-lock brakes, and anti-theft, qualifying you for the discount. Other standard safety features seatbelts and air bags also qualify you for this discount.
- Gold Star and Executive Member Discount: Exclusive Costco members will receive Ameriprise Insurance discounts such as free roadside assistance, homeowner benefits such as free home lockout assistance.
Costco Insurance Claims Satisfaction
Once a car insurance policy has been created, policyholders generally don’t have much contact with their insurance company outside of the claims process.
There are some exceptions, of course, as occasional changes to the policy may be required, such as adding a new driver or providing a new home address or phone number. However, the claims process is where most of the customer/company interaction occurs, which is why we considered claims satisfaction ratings so important in Costco Auto insurance reviews.
Market research companies such as J.D. Power have unique criteria that they use to rank major insurance providers. All can be categorized, however, using three key performance indicators that are related to the claims process:
- Ease of service interaction
In the JD Power 2018 US Auto Insurance Study for California, Ameriprise was rated “Better than Most,” or 4 out of 5, in the claims category.
Costco Auto Insurance Customer Ratings
Ameriprise Auto & Home Insurance’s philosophy is to handle each customer with care and the reviews of Costco Auto insurance reflect this corporate policy. The company has been recognized in numerous publications for its outstanding customer service.
Although customer satisfaction ratings weigh heavily on claims satisfaction, overall customer satisfaction is dependent upon several factors, including how well the company handles complaints and how well they respond to inquiries from policyholders and potential customers.
The J.D. Power U.S. Auto Insurance study calculates an overall customer satisfaction rating for Costco Auto/Ameriprise and its major competitors using several categories which include:
- Policy Offerings
- Price: Most clients benefit from the “first-year” savings with Ameriprise, saving hundreds of dollars on their insurance policies.
- Billing Process
- Claims Satisfaction
The insurance provider received 5 out of 5 ratings in all categories except Claims, for which it received 4 out of 5 stars, placing it just above USAA and Wawanesa.
In the 2018 US Auto Insurance Study for California, Ameriprise, which provides discounted policies for Costco Auto, won the top award for overall customer satisfaction.
The California Complaint Ratio Study provides consumers with an analysis of legitimate complaints logged against insurance providers in the state.
This study uses California as the representative state since it is the most populated state in the U.S. Although neither Costco Auto or Ameriprise were ranked in this study, IDS Property Insurance Casualty Company (a subsidiary of Ameriprise) was ranked 42 out of 50.
In the study, IDS received a total of 39 justified complaints. With a total claim exposure to 352,359, the company has a justified complaint ratio of 11.1, which is quite high.
Financial Strength of Costco Insurance Agency
Researching the financial strength of the insurance providers we’re considering doesn’t always come to mind, but it’s an important thing to do alongside gathering quotes from several companies.
Should a large-scale disaster occur that results in a multitude of claims for your insurance provider, it’s important to know they’ll be able to honor your policy and pay out your claim.
The Insurance Information Institute provides tips on how to understand financial Costco Auto insurance ratings from the five independent agencies.
A.M. Best has affirmed the credit rating of IDS Property Insurance Casualty Company and Ameriprise Auto & Home Insurance which provides policies for Costco Auto.
The company has received a Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (ICR) of A+. Moody’s Investors Services has given a credit rating of A3 for Ameriprise and its subsidiaries, which indicates a stable outlook for the company.
Is Costco Car Insurance Right for You?
After reading this detailed Costco Auto insurance review, you should have a better understanding of how this company provides insurance services to potential customers and policyholders.
Use this information to find the right insurance policy to protect you and your assets.