Costco Car Insurance Review (2026)

Costco Insurance: The basics

Costco car insurance is a service that connects Canadians with car insurance quotes through Inova Insurance Brokers Inc., a licensed broker offering quotes in Alberta, Ontario, Quebec, and the Atlantic provinces. Costco’s auto insurance partners include: 
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• Aviva
• Intact
• Economical
• Pafco
• Pembridge
• Travelers
• Zenith
• Facility (Nordic)
• Gore Mutual
• Max
• Wawanesa
• Family Insurance

What does Costco car insurance cover?

All Costco car insurance policies include coverage required by provincial law. While options may vary by province and the insurer you end up with, your policy should include the following basics: 

• Liability coverage: Pays for medical expenses and property repairs for others if you’re at fault in an accident, along with your legal costs if you’re sued
• Uninsured automobile coverage: Pays for your own medical expenses and vehicle repairs if you’re struck by an at-fault driver who is uninsured or can’t be identified (e.g. a hit-and-run driver)
• Family protection coverage: Extends your uninsured automobile coverage to match your own policy’s liability limits if you’re injured by an at-fault driver with insufficient liability insurance. While this endorsement is technically optional, almost all insurers include it by default. 
• Accident benefits: Offers first-party coverage through your own insurance company for medical bills, rehabilitation, income replacement, and other expenses after a car accident, regardless of who was at fault
• Direct compensation property damage (DCPD) coverage: Pays for damage to your vehicle caused by an identified at-fault driver

Note that DCPD coverage is no longer mandatory in Ontario. All Ontario auto insurance policies include this coverage by default and experts recommend keeping it, but you have the option to waive the coverage in writing. 

Optional Costco car insurance coverages and endorsements

The endorsements available to you through Costco’s car insurance broker will depend on the insurance carriers you’re paired with. Common optional coverage includes: 

• Collision or upset coverage: Pays to repair or replace your vehicle if it’s damaged in a single- or multi-vehicle collision, regardless of fault 
• Comprehensive coverage: Pays to repair or replace your vehicle if it’s stolen or damaged by a non-collision event such as severe weather, vandalism, or animal action
• All perils coverage: Combines collision and comprehensive coverage with a single deductible and adds coverage for theft by a household member
• Specified perils coverage: A limited version of comprehensive coverage with no coverage for vandalism
• Liability for non-owned vehicles: Extends your personal auto coverage to cars you rent or borrow
• Transportation replacement: Helps to cover the cost of a rental vehicle or alternate transport while your vehicle is being repaired following a covered loss
• Accident forgiveness: Prevents your premium from going up as the result of your first at-fault accident
• Roadside assistance: Provides emergency services including towing if your vehicle breaks down on the road

These aren’t the only add-ons that may be available, and each carrier’s version of these coverage options may look a little different. When comparing quotes, take the time to compare the coverage offered by each carrier as well. 

How much does Costco car insurance cost?

The cost of car insurance through Costco depends on which insurers you get quotes from, as well as the rating factors all insurance companies use to price auto coverage, including: 

• Age and driver experience: A young driver with a G2 license will pay considerably more for car insurance than a middle-aged driver who’s held a full G license for over a decade. 
• Gender: Most insurers price auto policies differently for men and women, with female drivers typically paying slightly higher rates. 
• Vehicle: Your vehicle’s make, model, year, safety equipment, and condition all impact what you’ll pay to insure it. 
• Vehicle usage and storage: Driving less than 12,000 kms per year, having a short or infrequent commute, and storing your car in a private locked garage can all lower the cost of coverage. 
• Driving history: Past tickets and at-fault accidents can raise your rates. Most insurers look back at least three years, but some will consider a longer driving history. 
• Insurance history: If you’ve made a claim, been dropped by your insurer, or been denied coverage at any point in the last several years, you may see higher rates or struggle to find coverage. 
• Discount eligibility: You could earn discounts from Costco’s car insurance partners for belonging to an employee or alumni group, installing winter tires on your vehicle, having an anti-theft device on your car, or bundling home and auto insurance. 

Can shopping through Costco save you money?

To test whether Costco’s broker service offers lower prices than direct quotes from its insurance partners, we requested quotes for all perils car insurance with no endorsements for a household with two cars and two drivers in London, Ontario. We then requested quotes for the same coverage and household directly from two of Inova’s partner companies, Aviva and Intact. 

^{* Quotes reflect the monthly cost of an all perils car insurance policy with $1,000 collision/comprehensive deductibles and $1M liability coverage.} 

In both cases, the quote we obtained through Costco was a little higher than the direct quote through the insurer’s website. This may be because Inova includes a commission in all insurance premiums. 

Is it better to buy car insurance through a broker?

Costco does not sell home and auto insurance directly; instead, they act as a broker through a partnership with Inova Insurance Brokers. There are some significant advantages of shopping with a broker: 

Is Costco car insurance right for you?

Costco car insurance may be a good option for Canadians looking for a convenient way to compare car insurance quotes from a range of providers. 

Most Costco car insurance customers praise the low rates and convenient service they got by using Inova’s broker service, with some reporting a significant decrease in their ongoing insurance costs. Be aware that Costco is not a direct car insurance provider and doesn’t quote with every car insurance company in Canada, so your options may be limited. 

FAQ: Costco car insurance

This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.