Explore whether Geico’s digital efficiency or Costco’s member-centric benefits align better with your car insurance needs.
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Our comprehensive review explores Geico and Costcos offerings, two major car insurance market players. Geico, known for its extensive digital tools and competitive pricing, may appeal to customers seeking convenience and cost-effectiveness. Costco, in partnership with American Family via its subsidiary CONNECT, offers benefits to its members, including exclusive discounts. This review looks at different parts of each insurance company, like their customer service and coverage options, to help you choose the one that might best meet your needs. Bankrate logo.
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When it comes to car insurance Geico and Costco are two big names that often come up. Geico is one of the largest insurance providers in the nation known for its witty ads and gecko mascot. Costco offers members great deals on home, auto, and other types of insurance.
But which is better for car insurance – Geico or Costco? I compared these two popular insurance providers based on cost, coverage, discounts, customer service, and more. Here’s an in-depth look at how Geico and Costco auto insurance stack up.
Cost Comparison
Cost is one of the most important factors for drivers shopping for car insurance. Geico and Costco both offer competitive rates, but which one is cheaper?
I got sample quotes for a 30 year old driver with a good credit score and clean driving record. For minimum full coverage with $100K/$300K liability limits, here’s how the quotes stacked up:
- Geico car insurance: $140/month
- Costco car insurance through Ameriprise: $127/month
Costco was about 9% cheaper for the same coverage. Of course, your own quotes will depend on your age vehicle location, and other factors. I recommend getting quotes from both providers to compare pricing.
Most people expect Geico to have the lowest rates. But Costco can leverage bulk buying power to negotiate great deals from insurers like Ameriprise for members. If you’re already paying for a Costco membership, you have little to lose by getting a quote.
Policy Options and Discounts
In addition to standard auto policies, Geico and Costco also provide options like:
- Rideshare coverage
- Roadside assistance
- Rental reimbursement
- Mechanical breakdown insurance
Geico has a particularly wide selection of add-ons and extra coverage choices. Costco offers fewer addons, but provides strong core auto insurance coverage.
For discounts, Geico offers savings for good drivers, students, federal employees, emergency deployment, anti-theft devices, anti-lock brakes, air bags, and more.
Costco members get an automatic discount on their quoted premiums. You can also save by bundling home and auto policies.
Many of the discounts are similar between the two companies. Get quotes listing any life factors that could score you savings.
Claim Satisfaction
How well an insurer handles claims and treats customers after an accident is crucial. This table summarizes complaint levels and claim satisfaction ratings for each insurer:
| Geico | Costco / Ameriprise | |
|---|---|---|
| Better Business Bureau (BBB) Rating | A+ | A+ |
| Number of Complaints | 205 complaints | 67 complaints |
| J.D. Power Claims Satisfaction | 891/1,000 points | 864/1,000 points |
Geico and Ameriprise both maintain solid A+ ratings with the BBB. Geico has more total complaints, likely due to its larger customer base.
On claims satisfaction, J.D. Power gives the edge to Geico with a score of 891/1,000 over Ameriprise’s 864/1,000. However, both receive high marks for claims handling.
Based on reviews and ratings, you can expect good treatment from either insurer when you need to file a claim. Geico may be slightly better for resolving claims quickly and smoothly.
Customer Service Experience
In addition to claims, you want an insurer that provides helpful, responsive customer service for questions and policy management. Here’s how the two companies compare:
-
Geico – You can connect with Geico by phone, online chat, email, mobile app, and online account dashboard. Extended service hours are offered. Reviews are mixed, with common complaints of long hold times.
-
Costco – Member services are available by phone and online chat. Support hours are more limited than Geico. Wait times are sometimes long. Customers give Costco mixed reviews for general policy service.
When it comes to customer experience, neither Geico nor Costco stands out as having exceptionally good or bad service. You may have to deal with hold times no matter which one you choose. Overall service quality seems average for both.
Pros and Cons
Here’s a quick recap of the major advantages and disadvantages of Costco and Geico car insurance based on my comparison:
Costco Pros
- Lower rates with member discount
- Strong coverage from Ameriprise
- Good claims satisfaction
- Bundling discounts available
Costco Cons
- Limited add-on options
- Average policy management service
Geico Pros
- Wide range of extra coverage add-ons
- Great claims satisfaction scores
- Numerous discount opportunities
Geico Cons
- Rates may be higher
- Long hold times for customer service
Is Costco or Geico Better for You?
At the end of the day, whether Costco or Geico is better for you depends on your needs and priorities as a driver. Consider these factors when deciding:
- Are you a Costco member? You need a membership for their insurance.
- Do you value cheaper premiums or more coverage choices?
- How important are customer service ratings to you?
- Review discount eligibility – which gives you more?
For Costco members needing basic, affordable coverage, their auto insurance is hard to beat. Drivers wanting specialized add-ons may prefer Geico. I recommend getting quotes from both insurers to see which coverage and pricing package fits you best.
The companies are pretty evenly matched overall. Evaluating your own driving profile and needs will make it clear whether Geico or Costco is the smarter provider for you. With either one, you can trust you’re in good hands. Just be sure to shop around if your rates ever spike!
Costco pros and cons Pros
- Exclusive discount opportunities for members on CONNECT policies
- Excellent financial strength rating from AM Best
- Offers other discount opportunities
- Claims agents available 24/7
Cons
- Not available in all states
- Requires membership for eligibility
- Few endorsements
- No mobile app for policy management
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Established in 1936, Geico holds 12. 31 percent of the auto insurance market share. It provides standard coverage policies and perks for everyday drivers and operates nationwide. Geico also extends its insurance offerings beyond auto insurance. However, the company doesn’t underwrite these policies directly; instead, it works with various insurance companies for underwriting.
Founded in 1976, Costco offers discounted car insurance in 44 states and Washington, D. C. through a partnership with American Family. American Family, holding a 2. 14 percent share of the private passenger auto insurance market, underwrites Costco’s auto policies through its subsidiary CONNECT. Costco’s car insurance partnership includes typical coverage options and requires membership for coverage discount eligibility. If you’re deciding whether to go with Costco auto insurance vs. Geico, Bankrate’s in-depth comparison can help. Lightbulb.
Geico stands out because its premiums are low for all types of drivers and its financial strength is high (AM Best rates it A). It has a lot of discounts and high-tech digital tools, like the DriveEasy telematics program, that make it a great choice for tech-savvy customers. On the other hand, Costco, which has an A rating from AM Best for American Families, offers a unique value proposition with benefits that are only available to members, such as the ability to renew for life and full roadside assistance. Geico is great at technology and prices, but Costco is a better option for people who can use its services because it focuses on member benefits and loyalty rewards.
Is Costco home insurance any good?
FAQ
Is Costco auto insurance really cheaper?
What insurance carrier does Costco use?
What insurance is better than Geico?
Is Geico the most expensive?
Is Costco insurance cheaper than GEICO?
Costco auto insurance — through CONNECT — is cheaper than GEICO, with all metrics constant. 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.
What makes Costco car insurance different?
Costco car insurance stands out because of its affordable plans and wide selection of coverage options. There’s a lot to like about Costco auto insurance, from cheap rates to an impressive set of coverage. Costco’s auto insurance provider American Family Insurance is also highly rated in industry studies for its size.
How much does Costco car insurance cost?
It’s no surprise that Costco is known for its affordable prices, including with car insurance. Our cost estimates for American Family, the insurance administrator, average around $128 per month or $1,537 per year for full coverage car insurance. This is just below the national average of $1,730.
Which car insurance companies are cheaper than Costco?
Many of these companies rank high on the list of cheap car insurance providers. While some of these companies were within a few hundred dollars of Costco (for example, Geico was $1,494, while Costco was $1,068), some were noticeably higher. For instance, the average premium at Farmers was $2,790, which was about $1,700 more than Costco ($1,068).