GEICO vs Costco Car Insurance: Which is Better for You?
Costco auto insurance vs. GEICO
Most insurance shoppers have heard of GEICO. The company is one of the most popular car insurance providers in the U.S., selling policies every state. Costco car insurance a less popular option. If you’re a Costco cardholder, you could qualify for a hefty discount on car insurance through CONNECT, powered by American Family Insurance. Let’s explore the major differences between GEICO and Costco auto insurance through CONNECT.
*If you're only looking for information related to Costco's offering, see our Costco car insurance guide.
GEICO vs. Costo car insurance cost comparison
To compare GEICO and Costco car insurance rates, we compared prices for a single driver with matching coverage levels and driving history (methodology). Costco auto insurance — through CONNECT — is cheaper than GEICO, with all metrics constant.
| Car Insurance Provider | Average Annual Premium |
|---|---|
| Costco | $1,068 |
| GEICO | $1,494 |
On average, GEICO charges $213 more for a six-month policy than does CONNECT — about 40%. On a monthly basis, CONNECT, powered by American Family Insurance, is $35 cheaper than GEICO.
The Zebra’s auto insurance data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Decide which car insurance policy is right for you.
Insurance coverage option comparison: GEICO vs. Costco
With basic coverage, GEICO and CONNECT provide similar levels of protection. The insurers' liability, collision, comprehensive, and state-specific requirements are the same. Once you dive into the finer details of each coverage option, you'll find differences. Let’s explore.
Gap insurance
Gap insurance is designed to cover the gap between your insurance company's valuation of your vehicle after it's totaled and the amount left on your loan. If you total your new-ish vehicle while paying installments on a $25,000 loan, your insurance company will only pay you for the value of your car at the time it was totaled. Because vehicles depreciate rapidly, it’s unlikely your claims payout will equal the $25,000 MSRP you're paying. Gap insurance is designed to cover this difference.
GEICO does not provide gap insurance, but Costco's policies do. This coverage is often required for vehicles that are leased or financed, so GEICO might not be a great option for you if you'd like the peace of mind provided by gap coverage.
You can purchase gap insurance through your auto financing company. Learn more about gap coverage.
Lifetime renewability
This feature is only available for Costco Executive Cardholders, who won't face insurance cancellation after multiple accidents. Many car insurance companies will cancel or non-renew your policy if you’ve had multiple claims.
There are some restrictions to Costco's lifetime renewability add-on:
- If you live in Maryland or Michigan
- Have “major violations”
- Fail to pay your premium
- Fail to provide requested documentation
- Move to a state not covered by CONNECT
- Purchase an uninsurable vehicle
GEICO does not specifically state its non-renewal policy. A general rule of thumb is you will be non-renewed if you have three claims within three years.
Telematics
Neither company offers telematics or a usage-based insurance program. These programs measure your driving habits in order to more accurately price your premiums. If you’re a safe driver, you can earn a discount.
Learn more about usage-based insurance and telematics.
GEICO vs. Costco car insurance: where are these policies available?
GEICO operates in all 50 U.S. states, while Costco’s program is a little more selective.
You must be a member of Costco to qualify for car insurance, and it may only be available in states in which CONNECT sells policies. The insurer does not offer coverage in the below states:
Alaska, California, Connecticut, Florida, Hawaii, Idaho, Louisiana, Maine, New Hampshire, North Carolina, North Dakota, Rhode Island, Tennessee, Washington, and Wyoming.
GEICO vs. Costco car insurance customer service comparison
Dealing with a car insurance company is never fun. If you’ve ever been through the claims process, you know decent customer service is crucial. Overall, CONNECT is ranked more favorably than GEICO in terms of customer service and J.D. Power ratings. However, CONNECT's unofficial customer reviews are considerably less favorable. Primary themes include difficult claims payouts and unpredictable rate increases. No matter which company you choose, do your research first.
Compare as many companies as possible to find the best service for the best price.
Compare quotes from over 100 providers.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.