Costco vs NJM: which is better for car insurance in 2026?
Across our six scoring categories, Costco comes out ahead in 0, NJM in 3, with 3 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. NJM 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.
Costco vs NJM, side by side
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.
Category by category
Price
Too close to callCostco does not release public rate data, so there is no like-for-like premium to set against NJM's Not published. 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.
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.
NJM's published average is a New Jersey figure, not a national one. New Jersey is a high-cost state, so setting it against a national benchmark would flatter NJM for reasons that have nothing to do with NJM. We have left it out rather than compare unlike things.
Claims satisfaction
Too close to callNeither pulls ahead on claims satisfaction: Costco posts Not rated and NJM 731/1,000, a difference too small to choose on.
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.
731 out of 1,000 in the J.D. Power 2025 claims study — second only to Erie among ranked insurers, and 31 points above the segment average.
Complaint record
NJM aheadNJM takes complaint record on Far fewer than expected against Costco's More than expected.
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.
Far fewer complaints than expected for its size — the strongest band we assign.
Financial strength
NJM aheadNJM takes financial strength on A+ against Costco's A.
AM Best A (Excellent), affirmed in September 2025 for all three companies that underwrite Costco auto policies.
AM Best A+ (Superior). Note that AM Best revised the outlook on its separate issuer credit rating to negative in 2025, citing consecutive underwriting losses.
Discounts
NJM aheadNJM takes discounts on 8 published against Costco's 9 published.
Nine published auto discounts, counting the member discount itself. No usage-based program is offered through Costco.
Around eight published discounts, plus the NJM SafeDrive telematics program.
Digital experience
Too close to callNeither pulls ahead on digital experience: Costco posts Not published and NJM Not published, a difference too small to choose on.
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.
NJM publishes no general policyholder app on either store — only the SafeDrive telematics app. Policy servicing is web-only, so there is no app experience to rate.
So which one?
Pick Costco if…
- You are among costco executive members who value guaranteed renewal.
- Availability fits: 40 states, members only.
Pick NJM if…
- You are among mid-atlantic drivers who weight claims handling above everything.
- You want the lower complaint record — NJM sits at Far fewer than expected.
- Financial strength is a priority; NJM holds A+ from AM Best.
- You expect to stack discounts — NJM's lineup is the broader of the two.
Costco vs NJM, answered
The questions people ask before switching between these two.
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