If you’re the kind of shopper who’s interested in stretching your dollars when purchasing groceries and household items, you’re probably quite familiar with Costco. Offering hundreds of locations worldwide, Costco is a membership warehouse club that first opened in 1976 under the Price Club name.
Initially, the company catered only to small businesses, but it eventually expanded its membership to include regular shoppers with no business affiliations. Warehouse clubs such as Costco purchase large quantities of merchandise and sell them at huge discounts to club members who pay an annual membership fee. It’s a business model that’s brought great success for Costco: the retailer holds the distinction of being the first company to grow from zero to $3 billion in sales in less than six years.
Connect, powered by American Family Insurance, is a carrier that provides auto and home insurance coverage to more than 400,000 Costco members. The company was previously known as Ameriprise Auto & Home Insurance, but it changed its name soon after being acquired by American Family Insurance on October 1, 2019. Ameriprise has partnered with Costco for several years, and that collaboration has continued following the acquisition and name change. If you’re a Costco member, Connect will provide you with exclusive policy discounts and benefits on home and auto coverage.
Unless you have Costco membership, it’s very likely that you’ve never heard of Connect. Undoubtedly, this insurance company lacks the brand recognition of rivals such as Geico and Progressive. That’s because Connect spends a lot less on advertising than its competitors, choosing instead to market its products in partnership with Costco.
Connect claims its collaboration with Costco is a natural fit, since both companies share the same core values. According to Connect, those values are rooted in competitive pricing and attentive client service.
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Types of Coverage From Connect Car Insurance
With Connect, policyholders can access a wide range of car insurance products. The company offers coverage for comprehensive, collision, property damage, bodily injury, uninsured motorist, medical expense and personal injury protection (PIP).
Roadside assistance is available to assist you if your car breaks down, and you can purchase rental car insurance to pay your expenses if you need to rent a car while your vehicle is in the shop. Connect also offers GAP insurance. If a car that you’re financing is totaled, depreciation may cause the vehicle’s value to be less than the amount you currently owe to your lender. GAP insurance will pay the difference between the vehicle’s value and the amount of the original loan.
Connect Car Insurance Discounts
Connect offers lots of discounts that allow you to save money on your car insurance.
Car insurance companies know that policyholders with clean driving records are usually less likely to file claims, and they generally tend to reward them with valuable discounts. At Connect, policyholders with a record of safe driving habits are eligible for cost savings. In California, this is known as a Good Driver discount. In other states, Connect calls this cost break a Premier Safety discount. To qualify, your driving record must be free of traffic violations, accidents, and claims for the past four years.
You can qualify for Connect’s Defensive Driver discount if you take a refresher driving course that’s approved by your state’s Department of Motor Vehicles (DMV) or an accredited institution. To earn the discount, you simply need to finish the course and present Connect with your certification of completion.
Certain vehicle safety features can protect you during car accidents and prevent theft, and insurance companies look favorably on drivers whose cars feature these amenities. If your vehicle has anti-lock brakes, air bags, automatic seatbelts, and/or anti-theft devices, you may be eligible for a discount from Connect.
Parking your car in a covered garage may protect your vehicle from harm and discourage theft. Connect offers a Garaging discount to those who park their vehicle overnight in a garage, but availability is limited.
Young drivers have less experience than other motorists, and this makes them more likely to have an accident. As a result, they typically pay the steepest car insurance rates. However, young students who get good grades often tend to be more responsible than their peers, and this may translate into safer driving habits that can reduce the likelihood of a crash. Connect offers a Good Student discount to full-time students who have exhibited academic achievement.
If you have a young driver on your policy who’s going to school more than 100 miles away from your home, you may be interested in Connect’s Student Away discount. With this discount, you can keep your student driver on your policy, and this will ensure that full coverage is provided during weekend visits or home breaks. This cost break provides savings that allow you to avoid paying the full rate for a student driver who won’t be using your vehicle on a daily basis. Note that students with a vehicle at school aren’t eligible for this discount.
Interestingly, statistics show that drivers with college degrees tend to file fewer claims than those who have fewer years of formal education. Connect recognizes this by providing an Education discount to drivers who have completed at least four years of additional study after high school.
Like many other insurance carriers, Connect offers a host of bundling discounts. A Multi-car discount is offered to policyholders who insure more than one vehicle with Connect. And Multi-product discounts are available to those who choose to combine their Connect auto insurance with the company’s home and umbrella policies.
Last but not least, Connect offers a Tenure discount to reward loyal customers. Once your coverage has reached certain time-related milestones, you become eligible for a lower rate.
Other Types of Policies From Connect
Connect offers a fairly varied lineup of insurance products. You can opt to purchase coverage that goes beyond just auto insurance.
The company provides homeowners insurance and condo insurance that can protect your dwelling. In addition to the typical coverage, Connect’s homeowners insurance can protect you from identity theft and check fraud.
If you’re not a homeowner, you may want to look into Connect’s renters insurance. This coverage can provide you with the peace of mind that comes with knowing your personal property is protected in your rental apartment.
Connect also offers umbrella insurance that can shield you after a major financial loss. This coverage provides protection in cases where a claim exceeds the liability limits of your auto or home insurance policy.
Finally, Connect offers a host of specialty insurance policies. The company provides coverage for ATVs, motorcycles, boats, RVs, and classic cars. A standard home insurance policy doesn’t protect your residence from flood damage. Connect offers specialty flood insurance that can provide financial assistance if your home falls victim to rising water.
Connect Financial Fitness
A.M. Best is an independent company that’s been recognized for its work in rating our nation’s insurance companies. According to A.M. Best, Connect earns a “A” (Excellent) rating for its financial strength, stability and soundness of operating performance. An “A” is the third highest of A.M. Best’s 15 ratings.
Connect is owned by American Family Insurance. Based in Wisconsin, American Family has 92 years of experience in the insurance business and ranks number 306 on the Fortune 500 list.
Other Insurance Brands Related to Connect
Connect’s parent company is American Family Insurance. The American Family Insurance group includes affiliates such as The General, Homesite, and Main Street America.
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The Cheapest Car Insurance Companies in 2020
Average Annual Rates:
- USAA: $885
- Geico: $1,168
- State Farm: $1,234
- Travelers: $1,267
- Progressive: $1,373
- American Family: $1,391
- Farmers: $1,682
- Nationwide: $1,864
- Allstate: $1,880