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8 Reasons To Buy Insurance at Costco

Exterior of a Costco warehouse store with a pickup truck in front
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Costco doesn’t just sell pallets full of paper products and cereal boxes big enough for daycare centers. The popular warehouse store also sells everything from gold bars to caskets.

But you might not know that your favorite bulk supplier also sells various types of insurance. You might not even think about it when you’re shopping, as it’s not exactly sitting on the shelves next to the rotisserie chicken. But you can read through the various offerings online from the comfort of your couch, and you might be surprised at what’s offered.

Of course, insurance offerings vary depending on where you live and other conditions. For instance, you can’t get new auto or home insurance in California or Florida right now. But that said, here are several reasons why you might want to buy your insurance from the same place where you purchase your baked goods.

1. Exclusive member discounts

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Costco offers its auto and home insurance through Connect, a subsidiary of American Family Insurance, and members get a discount in most states. Vet bills getting you down? Costco members get a 15% discount on pet insurance through Figo Pet Insurance.

2. Fridge food coverage

woman looks for staple cooking ingredients
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Losing electrical power is never fun. In addition to the discomforts of having to light your way with flashlights and lanterns, there’s the extra worry that the food in your fridge and freezer is slowly warming up and may no longer be safe to eat. Homeowner policies offered through Costco may cover the costs of food spoiled during a power outage through a benefit for “refrigerated property.”

3. Failed appliance benefits

Upset man with overloaded dishwasher leaking suds
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Do you feel like your avocado-green, 1970s refrigerator will outlast the cockroaches? Modern appliances, however, keep adding advanced features — and getting more costly to repair and replace. Costco offers Equipment Breakdown Insurance. While it doesn’t cover normal wear and tear on your items, it does help cover costs to repair or replace home appliances that stop working suddenly.

4. Power line and burst pipe protection

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No one wants to throw money into a hole in the ground. But that’s what it can feel like when you’re facing a burst pipe or utility line issue. Unfortunately, homeowners are usually responsible when utility lines and pipes that run from the street to their house fail. Service Line Coverage helps limit the out-of-pocket costs from problems caused by utility lines and pipes.

5. Stolen credit card protection

Package thief
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It’s a credit-card holder’s nightmare: Someone else gets hold of your card and begins charging up a storm. Costco’s home insurance may also include no-deductible claims for unauthorized credit card use, as well as fraudulent checks.

6. Identity theft protection

Shocked older man looking at laptop finding private information leaked or identity theft or some other online mistake
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In this modern world, we give out our identifying information to many places, trusting they’ll take care of it. But that’s not always the case.

Identity theft is a real fear. Costco’s home and condo policies offer identity theft protection, and could cover the costs you incur as you untangle the damage.

7. Extra home insurance benefits

The slate blue front door of a home
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Have you ever had that sinking feeling when you realize you’re locked out of your own house? Costco Executive members with a Connect insurance policy get home lockout help at any hour of the day or night. They also are covered for glass repair — so if your house suffers a broken window and you report the claim, you could be paid up to $1,000 toward window replacement or repair.

8. Extra auto insurance benefits

Worried car driver
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That Costco Executive membership also pays off if your car breaks down. Executive members with Connect insurance policies also get roadside assistance to help with everything from a flat tire to a dead battery, and could cover up to $75 per occurrence for insured vehicles. Another nice perk: Executive members could receive lifetime renewability for their auto policy, though there are exceptions.

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