Costco does not directly underwrite or sell auto insurance itself, but it partners with major insurance providers—such as Inergi Insurance in Canada or CONNECT by American Family Insurance in the US—to offer exclusive discounted group rates to its warehouse members. These partnership programs can often yield significant savings, sometimes slashing 10 to 20 percent off standard premium pricing. While these member discounts make Costco partner policies exceptionally competitive and frequently among the cheapest options available for qualifying members, comparing quotes across multiple independent insurers is still recommended to guarantee the lowest overall rate.
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