Costco Car Insurance 2026: CONNECT Rebrands to American Family Insurance
In 2026, the long-standing partnership between Costco and CONNECT has undergone a major brand update, now operating under the American Family Insurance name. This transition ensures that Costco members continue to receive some of the most competitive rates in the US. While the name on your policy documents may have changed, the core benefits—including exclusive member discounts and specialized coverage for Executive Members—remain the standard for value-driven auto protection across 44 states.
The partnership between Costco and its insurance providers has long offered members competitive rates and bundled benefits. As 2026 unfolds, the transition from CONNECT Insurance to American Family Insurance marks a pivotal shift in how Costco delivers car insurance to its membership base. This change brings new opportunities and considerations for drivers seeking affordable coverage through their wholesale club membership.
State Availability: Why Costco Car Insurance Is Currently Unavailable in California and Florida
Costco car insurance through the American Family Insurance partnership operates in select states across the country. California and Florida residents currently cannot access this program due to regulatory requirements and underwriting restrictions specific to these markets. Insurance carriers must meet state-specific licensing standards, reserve requirements, and rate approval processes that vary significantly. California’s Proposition 103 imposes unique rate regulation, while Florida’s high-risk coastal exposure and litigation environment create barriers for some carriers. American Family Insurance has chosen to focus its Costco partnership on states where it maintains established operations and regulatory approval. Members in California and Florida may need to explore alternative Costco insurance partners or independent carriers to meet their auto coverage needs.
Coverage Spotlight: Understanding the Glass Repair Deductible Waiver Included at No Extra Cost
One standout feature of the Costco-American Family program is the Glass Repair Deductible Waiver automatically included in comprehensive coverage. This benefit eliminates out-of-pocket costs when repairing windshield chips or cracks, provided the damage can be repaired rather than requiring full replacement. Glass damage from road debris is common, and traditional policies often require deductible payments even for minor repairs. The waiver encourages prompt repair, preventing small chips from spreading into larger cracks that necessitate costly replacements. This no-cost inclusion adds tangible value without increasing premiums, making it easier for drivers to maintain vehicle safety and visibility. Policyholders should verify repair versus replacement coverage limits and whether the waiver applies in their specific state, as coverage details can vary by location.
How to Stack Discounts: Combining Costco Membership with Good Driver and Multi-Vehicle Savings
Maximizing savings requires understanding how to layer available discounts effectively. Costco members typically receive a membership discount as a baseline benefit when purchasing through the program. Good Driver discounts reward those with clean driving records, usually requiring three to five years without at-fault accidents or major violations. Multi-Vehicle discounts apply when insuring two or more vehicles on the same policy, often reducing premiums by 10 to 25 percent per vehicle. Additional savings may come from bundling home and auto policies, completing defensive driving courses, or installing anti-theft devices. The key to stacking discounts is ensuring each qualifies independently without overlap restrictions. Some carriers limit total discount percentages, so understanding policy terms helps set realistic savings expectations. Comparing the combined discount structure against competitor offerings ensures the Costco program delivers genuine value beyond the membership benefit alone.
| Discount Type | Typical Savings Range | Eligibility Requirements |
|---|---|---|
| Costco Membership | 5-15% | Active Costco membership |
| Good Driver | 10-25% | 3-5 years without violations |
| Multi-Vehicle | 10-25% per vehicle | 2+ vehicles on same policy |
| Bundling (Home + Auto) | 15-30% | Multiple policies with same carrier |
| Defensive Driving Course | 5-10% | Approved course completion |
Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.
Executive Member Exclusive: Why Lifetime Renewability Is a Game-Changer in 2026
Costco Executive Members gain access to Lifetime Renewability, a feature that guarantees policy renewal regardless of claims history or changing circumstances. Traditional insurance policies may face non-renewal after multiple claims or when carriers exit specific markets. Lifetime Renewability provides stability and peace of mind, ensuring continuous coverage as long as premiums are paid and state licensing remains valid. This benefit particularly matters for drivers with past claims who might otherwise struggle to find affordable coverage. The guarantee applies only to Executive-level memberships, which require an annual fee beyond the standard Costco membership cost. For frequent drivers or those with higher risk profiles, this feature can offset membership costs through avoided coverage gaps and maintained rate stability. Policyholders should confirm whether Lifetime Renewability applies in their state and understand any conditions that might affect eligibility.
The 2026 Rebrand: What CONNECT Changing to American Family Means for Your Policy
The transition from CONNECT Insurance to American Family Insurance represents more than a name change. American Family Insurance brings decades of industry experience, expanded financial backing, and broader service networks to the Costco partnership. Existing CONNECT policyholders will see their coverage transferred to American Family with minimal disruption, though policy numbers and customer service contacts will change. The rebranding may introduce new coverage options, updated digital tools, and enhanced claims processing capabilities. American Family’s larger footprint could eventually expand state availability, though immediate changes focus on seamless policy transitions. Current policyholders should review renewal documents carefully to understand any coverage adjustments or premium changes resulting from the rebrand. The partnership aims to maintain competitive pricing while leveraging American Family’s resources to improve service quality and customer experience.
The evolution of Costco’s car insurance program through the American Family partnership reflects broader trends in warehouse club insurance offerings. Members benefit from competitive pricing structures, exclusive coverage features, and the stability of an established carrier. Understanding state availability limitations, coverage enhancements like the Glass Repair Deductible Waiver, and discount stacking strategies helps maximize value. Executive Members gain additional advantages through Lifetime Renewability, providing long-term coverage security. As the 2026 rebrand unfolds, staying informed about policy changes and comparing coverage options ensures Costco members make educated decisions aligned with their insurance needs and budget considerations.
