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American Family vs Costco: which is better for car insurance in 2026?

Q: Is American Family or Costco cheaper?

We cannot answer that with published data. Costco does not release public rate information, so no independent study — ours included — can put a national average next to American Family's $2,785/yr. The only way to know is to quote both.

Q: Which handles claims better, American Family or Costco?

Neither has a clear edge. American Family scores 702/1,000 and Costco Not rated on the claims measure we use — close enough that the individual adjuster you draw matters more than the company average.

Q: Is American Family better than Costco overall?

We can't put two scores side by side here. Costco does not publish enough of the underlying data for us to give it an overall score — we would rather say so than compute one from the two or three figures that do exist. American Family scores 3.7 out of 5. Compare them on the individual categories above, and on the quotes you actually get.

Q: Can I switch from American Family to Costco mid-policy?

Yes. Auto policies can be cancelled at any time, and most insurers refund the unused premium pro-rata — though some charge a short-rate cancellation fee, so check your policy before you cancel. The one rule worth following: get the new policy bound and in force before you cancel the old one. Even a single day uninsured can count as a coverage lapse, which raises your rate at the next renewal and, in some states, exposes you to a registration penalty.

American Family

CostcoNot scored

Across our six scoring categories, American Family comes out ahead in 2, Costco in 0, with 4 too close to call. There is no overall score to compare, though: Costco does not publish enough of the underlying data to earn one, and we would rather leave it blank than build a number out of the two or three figures that happen to exist. American Family is the better-documented of the two, which is not the same as being the better insurer for you. Judge these two on the categories where both have real figures — and on what they actually quote you.

American Family vs Costco, side by side

Category

American FamilyRead the full review

CostcoRead the full review

Overall scoreWeighted across the six categories below

Not scored

PriceAverage annual full-coverage premium · 25% of score

2.5$2,785/yr

Average full coverage vs. $2,356 national average

Not published

This company does not release public rate data

Claims satisfactionJ.D. Power 2025 claims study, out of 1,000 · 20% of score

3.5702/1,000

J.D. Power 2025 claims study, segment average 700

Not rated

Not ranked as its own brand in the J.D. Power 2025 claims study

Complaint recordComplaints relative to company size · 15% of score

4.5Fewer than expected

Complaints relative to company size, NAIC data 2022–2024

Better

2.5More than expected

Complaints relative to company size, NAIC data 2022–2024

Financial strengthAM Best Financial Strength Rating · 10% of score

4.0A

AM Best Financial Strength Rating

4.0A

AM Best Financial Strength Rating

DiscountsBreadth of published discounts · 15% of score

5.014 published

Discounts on the carrier's own pages · Telematics: DriveMyWay and MilesMyWay

Better

3.59 published

Discounts on the carrier's own pages · No branded telematics program found

Digital experienceApp ratings and self-service depth · 15% of score

3.54.72 iOS / 3.0 Android

App Store (91K ratings) and Google Play (10.7K ratings), August 2026

Not published

No app-store presence we could verify

Availability

19 states, mostly the Midwest and West

40 states, members only

Best suited to

Midwest drivers who bundle and use telematics

Costco Executive Members who value guaranteed renewal

Sources: average premiums from NerdWallet's August 2026 rate analysis (Quadrant Information Services), for a 35-year-old driver with a clean record and good credit in a 2023 Toyota Camry LE at 12,000 miles a year, 100/300/50 limits with $1,000 deductibles — national average $2,356. Claims satisfaction from the J.D. Power 2025 U.S. Auto Claims Satisfaction Study (segment average 700). Complaint record from NerdWallet's analysis of NAIC complaint data, 2022–2024. Financial strength from AM Best. Discounts and app data from each carrier's published pages and the Apple App Store / Google Play, retrieved August 2026. Updated August 2026.

American Family vs Costco across all six categoriesScored 1–5. Longer is better in every category — the price bar already accounts for cheaper being better.

American FamilyCostco

Category by category

Price

Too close to call

Costco does not release public rate data, so there is no like-for-like premium to set against American Family's $2,785/yr. That is a real gap in the comparison, not a rounding error — treat Costco's price as unknown until you have a quote in hand.

American Family

$2,785 a year for full coverage, 18% above the national average. American Family is priced above the market.

Costco

No published premium. The rate study behind every other price on this site does not quote Costco separately, so the price category carries no score.

Claims satisfaction

Too close to call

Neither pulls ahead on claims satisfaction: American Family posts 702/1,000 and Costco Not rated, a difference too small to choose on.

American Family

702 out of 1,000, two points above the segment average. Essentially average.

Costco

Costco is not a ranked brand in the J.D. Power 2025 claims study. American Family's 702 is measured on a different book of business and is not borrowed here.

Complaint record

American Family ahead

American Family takes complaint record on Fewer than expected against Costco's More than expected.

American Family

Fewer complaints than expected for its size — its strongest measure.

Costco

More complaints than expected for its size, per NerdWallet's analysis of 2022–2024 NAIC data — a worse record than American Family's own brand.

Financial strength

Too close to call

Neither pulls ahead on financial strength: American Family posts A and Costco A, a difference too small to choose on.

American Family

AM Best A (Excellent).

Costco

AM Best A (Excellent), affirmed in September 2025 for all three companies that underwrite Costco auto policies.

Discounts

American Family ahead

American Family takes discounts on 14 published against Costco's 9 published.

American Family

Fourteen published discounts, including several unusual ones — a loyalty discount that rewards a parent's tenure, and a young-volunteer discount.

Costco

Nine published auto discounts, counting the member discount itself. No usage-based program is offered through Costco.

Digital experience

Too close to call

Neither pulls ahead on digital experience: American Family posts 4.72 iOS / 3.0 Android and Costco Not published, a difference too small to choose on.

American Family

4.72 on the App Store but 3.0 on Google Play. That Android score is among the lowest in this review and hard to overlook.

Costco

No app-store figures we could attribute to the program. Policies are serviced through American Family's account system, and we could not confirm which app Costco policyholders use.

So which one?

Pick American Family if…

You are among midwest drivers who bundle and use telematics.
You want the lower complaint record — American Family sits at Fewer than expected.
You expect to stack discounts — American Family's lineup is the broader of the two.
Availability fits: 19 states, mostly the Midwest and West.

Read the full American Family review →

Pick Costco if…

You are among costco executive members who value guaranteed renewal.
Availability fits: 40 states, members only.

Read the full Costco review →

American Family vs Costco, answered

The questions people ask before switching between these two.

Is American Family or Costco cheaper?

Which handles claims better, American Family or Costco?

Is American Family better than Costco overall?

Can I switch from American Family to Costco mid-policy?

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