Costco Car Insurance Review for Canadian Members

How Costco Car Insurance Works

Costco operates as an insurance broker in Canada through its partnership with Inova Insurance Brokers Inc. This means Costco itself does not underwrite or sell insurance policies. Instead, Inova acts as a licensed broker that shops quotes from its network of insurance carriers on behalf of Costco members. When a member requests a quote, Inova gathers information and provides options from partner companies such as Aviva, Intact, RSA, and Travelers. The final insurance contract is between the member and the chosen insurance company, not with Costco or Inova. This brokerage model is designed to simplify comparison shopping by presenting multiple options through a single point of contact. A Costco membership is mandatory to access this service, with the Gold Star tier starting at $65 annually. The service is currently available in Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Quebec. Inova's program was created specifically for Costco members across Canada, meaning their insurance program is available to members only.

Standard and Optional Coverage Details

All auto insurance policies obtained through Costco's broker service include the mandatory coverage required by provincial law. This foundational coverage typically includes third-party liability insurance, which covers injuries or damage you cause to others. It also includes accident benefits coverage, which provides medical and rehabilitation benefits for you and your passengers regardless of fault. Direct compensation property damage coverage, which covers damage to your vehicle and its contents when another driver is at fault, is included by default in Ontario policies, though it can be waived in writing. Beyond these legal minimums, policies will include collision coverage for damage from impacts with another vehicle or object and comprehensive coverage for non-collision events like fire, theft, or vandalism. Comprehensive and collision coverages usually carry a deductible, often set at $500 or $1,000, which the policyholder must pay first when making a claim. It is important to note that comprehensive coverage is an optional extension, and for older vehicles, the cost may not be worthwhile if the car's value is less than the deductible.

The optional endorsements available will depend on the specific insurance carrier you are matched with. Common add-ons include loss of use coverage, which reimburses transportation costs like rental cars or taxis while your vehicle is being repaired after a claim. Rental vehicle coverage extends your policy's protection to cars you rent in Canada or the United States, covering damage up to the limit stated in your policy in Canadian dollars. A waiver of depreciation, aimed at new vehicles zero to four years old, ensures a total loss payout based on the car's original purchase price rather than its depreciated value, though drivers with spotty records may not qualify. An accident forgiveness endorsement can prevent a premium increase after your first at-fault accident. A conviction protector endorsement may help preserve a conviction-free discount after a minor traffic violation, though some providers do not offer this coverage. It is important to compare the specific terms of these optional coverages as they can vary between insurance carriers. Other optional benefits can include increased medical coverage, with standard policies including up to $1,000,000 for catastrophic injuries and options to increase coverage for non-catastrophic injury medical, rehabilitation, and attendant care to limits of $65,000, $130,000, or $1,000,000.

Membership Benefits and Potential Discounts

Access to the insurance brokerage service is a benefit reserved for Costco members. The primary membership tiers are the Gold Star membership at $65 per year and the Executive membership at $130 per year. As a broker, Inova markets its service with the promise of finding competitive rates and its tagline is insurance made easy. One highlighted benefit is the potential discount for bundling home and auto insurance policies, which is advertised as providing the best price and can give you 20% off your quote. A standard policy feature through this channel is a waiver of the deductible for glass repairs, meaning you would not pay out-of-pocket for windshield or window fixes. Comprehensive plans may also include coverage to replace locks if keys are lost or stolen. The broker service itself is promoted as a convenient way to compare multiple quotes without contacting each insurer individually, leveraging Costco's large network of brokers.

In addition to the broker's stated benefits, the insurance carriers Inova works with may offer their own discounts. These can include discounts for insuring multiple vehicles on the same policy, for drivers who have completed an approved defensive driving course, or for students who maintain good grades. Other common carrier discounts may apply for having a claims-free driving record, installing a winter tire package, or using a telematics device to monitor driving habits. The final premium is determined by the insurer based on standard rating factors such as the driver's age, location, driving record, claims history, and the vehicle's make, model, and year. It is important to factor in the annual Costco membership fee when evaluating the total cost of obtaining insurance through this channel, as it is an additional expense on top of the premium.

Cost Comparison and Broker Commissions

The cost of car insurance through Costco's service depends on the quotes received from Inova's partner insurers. To evaluate potential savings, a comparison was conducted for a two-car, two-driver household in London, Ontario, seeking an all perils policy with $1 million liability and $1,000 deductibles. Quotes were obtained through the Costco/Inova broker service and then directly from two of its partner companies, Aviva and Intact. In both instances, the quote provided through the Costco broker service was slightly higher than the quote obtained directly from the insurer's own website. This price difference may be attributed to the inclusion of a broker commission within the premium quoted through Inova. This suggests that while the broker service offers convenience, it does not guarantee the absolute lowest price, and members may find it worthwhile to also check direct quotes. The brokerage model means Inova includes a commission in all insurance premiums it arranges, which is a standard industry practice.

This comparison illustrates that the broker-arranged premium included an additional cost. The standard rating factors that all insurers use, such as postal code, vehicle type, and driver history, remain the primary determinants of the base price. The broker's role is to present options, but the final pricing is set by the underwriting insurance company, which incorporates the broker's fee. Members should be aware that initial low rates reported by some customers may change at renewal, as insurance premiums are subject to annual review and adjustment based on claims experience and other factors.

Steps to Get a Quote Through Costco

To obtain a car insurance quote through Costco, you must first be a current member or purchase a membership. The process begins on the Inova Insurance Brokers website, which hosts an online quoting tool designed specifically for Costco members. This tool is designed to be user-friendly and can typically be completed in about five minutes, as most quotes take about 5 minutes. You will need to provide standard information such as your driver's licence details, vehicle identification number, claims history, and desired coverage levels. After submitting the online form, Inova's system generates quotes from its panel of insurance carriers based on your profile. You can then review these quotes, which will detail the premium, coverage limits, deductibles, and any special conditions. The website is built to help, allowing you to complete the entire insurance buying process online if you choose.

• Confirm or purchase a Costco Gold Star or Executive membership.
• Visit the Inova Insurance Brokers Inc. website dedicated to Costco members.
• Complete the online auto insurance quote form with your personal and vehicle details.
• Review the quotes presented from Inova's partner insurance companies.
• Select a quote and proceed with the online purchase, or book an appointment with a licensed broker for further advice.
• Finalize the policy directly with the chosen insurance carrier, which will issue the official documents.

If you prefer personalized advice, the website also allows you to schedule a phone appointment with a licensed broker at a convenient time. Once a policy is chosen, the entire purchase process can be completed online. It is important to note that home insurance quotes through this service are currently only available for owned homes, such as houses and townhomes, and not for renters. Inova states they are working on expanding coverage options for renters in the future.

Common Customer Experiences and Limitations

Customer feedback on the Costco insurance brokerage service often highlights the convenience and potential for lower rates. Some members report significant savings on their premiums compared to their previous insurer, appreciating the streamlined quote process and the excellent customer service provided by brokers during the quote stage. The service is specifically designed for Costco members, and the broker's role in shopping the market is a noted advantage for those who prefer not to contact multiple companies individually. However, experiences with customer service and claims handling will depend entirely on the insurance carrier that ultimately underwrites the policy, not Costco or Inova. Some reviews point out that while initial rates may be competitive, premiums can increase upon renewal, which is a common practice across the insurance industry. There have been customer complaints regarding the customer service of specific partner insurers like CONNECT by American Family, indicating that satisfaction levels can vary widely based on the provider.

There are several important limitations to consider. The service is not available in all Canadian provinces and territories. It operates only in the seven provinces previously listed: Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Quebec. As a broker, Inova does not quote with every car insurance company in Canada, so a member's options are limited to its partner network. The brokerage model also means that Costco and Inova are not the entities you would contact to file a claim or make changes to your policy after purchase. Those services are handled directly by the insurance company. Furthermore, the advertised benefits, like bundling discounts, are subject to the terms and conditions of the specific insurer and may not apply in all circumstances or for all policy combinations. For home insurance, the program currently only offers coverage for owned homes and is working on expanding options, meaning renters cannot get a home quote through this channel at this time.

Related Insurance Products Available Through Costco

Beyond auto insurance, Costco's partnership with Inova and other providers offers members access to several other types of insurance products. Home insurance is available for owned homes, including houses and townhomes, with coverage for the dwelling and personal property. Bundling home and auto insurance is actively promoted as a way to get the best price. Costco also offers life insurance policies through Protective Life, which are available in 10, 20, and 30-year terms with coverage ranging from $100,000 to $5 million. No medical exam is required for these term life policies, and applications can be completed online or by phone. According to quoted rates, a 40-year-old male in good health could obtain $250,000 of coverage with a 20-year term for $19.04 per month as a Gold Star member for the first five years, with the price increasing to $20.83 in the sixth year and beyond.

Other insurance products include individual or family health expense plans, critical illness insurance for diagnosis of a covered illness, and pet insurance. It is important to understand that these products are provided by third-party insurers, not by Costco directly. For example, auto policies in the broader Costco Insurance Agency in the United States are underwritten by American Family Connect Property and Casualty Insurance Company or Midvale Indemnity Company, while homeowners insurance is through Homesite. The member discount structure and available insurers can differ between Canada and the United States, and in some U.S. states, discounts are not available for certain products or membership tiers. In Canada, the primary conduit for auto and home insurance is the broker relationship with Inova Insurance Brokers Inc.

Frequently asked questions

Sources and further reading

1. Costco Car Insurance Review (2026) policyme.com
2. Costco Car Insurance Review 2026 loanscanada.ca
3. Costco Services, A great quote costco.ca
4. Should You Buy Insurance From Costco? cnbc.com

This article explains how things work and is not financial, tax or legal advice. Rules, limits and rates change, so check the current figures with the Canada Revenue Agency, your province or your financial institution before you act.