Costco Auto Insurance vs Geico: Difference and Comparison

To pick out the appropriate insurance company for your vehicle, a lot of research and comparison goes into it.

In the United States, Geico is the second largest company for car insurance that provides broad coverage at lower rates.

On the other hand, Costco auto insurance sells different types of car insurance to its members under the brand name Connect.

Key Takeaways

  1. Costco Auto Insurance is only available to Costco members, while Geico is available to the general public.
  2. Costco Auto Insurance discounts Costco members, while Geico discounts members of various organizations and occupations.
  3. Costco Auto Insurance is only available in certain states, while Geico is available in all 50 states.

Costco Auto Insurance vs Geico

The difference between Costco auto insurance and Geico is that American Families write Costco auto insurance policies, and the perks they provide depend on the level of Costco membership. On the other hand, Geico is one of the leading car insurance companies in the US, with coverage in 50 states. Geico provides packages at lower rates and has strong customer ratings. 

Costco Auto Insurance vs Geico
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Costco auto insurance sells different insurance policies to Costco members, but the best perks are only available to Costco’s Executive Membership tier.

American Family writes the insurance policies that are sold by Costco, and the discount rates, coverages, etc., provided are very strong. But, Costco auto insurance provides below-average customer service. 

Geico, the second-largest car insurance company in the US, provides broad coverage at lower rates. The company has a strong market in 50 US states and the District of Columbia.

Geico also provides better customer service than Costco auto insurance. Geico is a better choice for customers who are looking for multiple types of insurance and lower rates, and everything can be done online.

Comparison Table

Parameters of ComparisonCostco Auto InsuranceGeico
Availability Costco auto insurance is available in 34 states for Costco members. Geico is available in 50 states and the District of Columbia.  
CoverageCostco has the benefit of stolen key coverage, where one doesn’t have to pay a deductible if it is less than $250. Geico provides mechanical breakdown insurance, which covers the cost of mechanical repairs in case your car breaks down.
CostThe policies of Costco are comparatively more expensive than Geico’s. Geico provides a broad range of choices at an affordable rate. 
Discount ratesCostco provides an additional discount to students who have completed a minimum of four years of education after high school. Geico provides additional discounts to military people, federal employees, and new vehicle owners. 
Customer serviceCostco scores less than Geico when it comes to good customer service. Geico provides very helpful customer service, and everything is mostly available online and easy to understand. 

What is Costco Auto Insurance?

Costco Auto Insurance is sold to Costco members through American Family under the brand name Connect.

It provides almost every coverage expected from a giant insurance company like Costco and has some unique additional coverages.

The insurance policies of Costco are a perfect choice for different tiers of Costco members as they get various perks and discounts. 

The executive tier members of Costco get two additional perks of the insurance: free roadside assistance and an option for renewal of policies.

Costco also provides accident travel expense coverage, where the company partially reimburses the transportation charge if you meet with an accident from more than 100 miles from your home. 

Costco Auto Insurance is ideal for people who have met with recent accidents and are worried that their policies will be cancelled.

If someone avails of the Costco Executive Membership, the additional perks and discounts make it the best choice.

Costco is also well-known for low average premiums; you can claim services 24/7. But, Costco’s customer support drags down the company’s overall rating. 

geico car insurance

What is Geico?

Geico is one of the famous auto insurance companies across the US since it is available in 50 states. It provides one of the cheapest car insurance rates and additional coverages.

Geico provides mechanical breakdown insurance that can repair and replace the car’s mechanical parts in case it breaks down. It also provides rideshare insurance for drivers that work for Lyft or Uber

Geico provides a variety of discounts to different types of customers. For example, a federal employee discount is available for active and retired federal members, providing up to an 8% discount.

For US military personnel, Geico provides a discount of up to 15% on premiums. 

Geico uses an app to monitor the driving habits of drivers. If one drives safely, Geico reduces the insurance rates.

Some other discount rates Geico provides are multicar discounts, pay-in-full discounts, multipolicy discounts, etc. 

Geico is ideal for users who want everything to be available online. Moreover, the company has a higher rating for customer support and satisfaction. 

geico 1

Main Differences Between Costco Auto Insurance and Geico

  1. Costco Auto Insurance is available to Costco members in 34 US states, whereas Geico is available in 50 states and also in the District of Columbia. 
  2. Costco Auto Insurance provides additional coverage for stolen keys and doesn’t charge a deductible if it is less than $250. On the other hand, Geico repairs and replaces mechanical parts of the vehicle if your car breaks down. 
  3. The policies of Costco Auto Insurance written by the American Family are expensive, whereas Geico is more affordable. 
  4. Costco Auto Insurance provides a discount to students who have completed a minimum of 4 years of education after high school. Geico provides additional discounts to federal employees, military people, and new vehicle owners. 
  5. The customer service rating is below average for Costco Auto Insurance, whereas Geico has impressive customer care service, and everything is available online to enhance a smooth user experience. 
References
  1. https://our.oakland.edu/bitstream/handle/10323/8996/20040331-New-program-helps-employees-save-on-insurance.pdf?sequence=1
  2. https://arxiv.org/abs/1806.09736

Last Updated : 13 July, 2023

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