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Costco vs State Farm: which is better for car insurance in 2026?

Q: Is Costco or State Farm 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 State Farm's $2,065/yr. The only way to know is to quote both.

Q: Which handles claims better, Costco or State Farm?

Neither has a clear edge. Costco scores Not rated and State Farm 716/1,000 on the claims measure we use — close enough that the individual adjuster you draw matters more than the company average.

Q: Is Costco better than State Farm 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. State Farm scores 4.3 out of 5. Compare them on the individual categories above, and on the quotes you actually get.

Q: Can I switch from Costco to State Farm 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.

CostcoNot scored

State Farm

Across our six scoring categories, Costco comes out ahead in 0, State Farm 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. State Farm 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 State Farm, side by side

Category

CostcoRead the full review

State FarmRead the full review

Overall scoreWeighted across the six categories below

Not scored

PriceAverage annual full-coverage premium · 25% of score

Not published

This company does not release public rate data

4.0$2,065/yr

Average full coverage vs. $2,356 national average

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

Not rated

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

4.0716/1,000

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

Complaint recordComplaints relative to company size · 15% of score

2.5More than expected

Complaints relative to company size, NAIC data 2022–2024

3.5About the expected number

Complaints relative to company size, NAIC data 2022–2024

Better

Financial strengthAM Best Financial Strength Rating · 10% of score

4.0A

AM Best Financial Strength Rating

5.0A++

AM Best Financial Strength Rating

Better

DiscountsBreadth of published discounts · 15% of score

3.59 published

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

4.511 published

Discounts on the carrier's own pages · Telematics: Drive Safe & Save

Better

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

Not published

No app-store presence we could verify

5.04.79 iOS / 4.6 Android

App Store (1.25M ratings) and Google Play (476K ratings), August 2026

Availability

40 states, members only

48 states and D.C., through the largest agent network in the country — no new business in Massachusetts or Rhode Island

Best suited to

Costco Executive Members who value guaranteed renewal

drivers who want a local agent rather than an app

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.

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

CostcoState Farm

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 State Farm's $2,065/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.

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.

State Farm

At $2,065 a year for full coverage, State Farm sits about 12% under the national average — competitive, but not the cheapest of the national carriers.

Claims satisfaction

Too close to call

Neither pulls ahead on claims satisfaction: Costco posts Not rated and State Farm 716/1,000, a difference too small to choose on.

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.

State Farm

716 out of 1,000 in the J.D. Power 2025 claims study puts State Farm comfortably above the 700-point segment average, and ahead of every other insurer in the top four by market share.

Complaint record

State Farm ahead

State Farm takes complaint record on About the expected number against Costco's More than expected.

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.

State Farm

State Farm draws about the number of complaints its size predicts. For the largest personal auto insurer in the country, average is a more meaningful result than it sounds.

Financial strength

State Farm ahead

State Farm takes financial strength on A++ against Costco's A.

Costco

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

State Farm

AM Best's top rating, A++. State Farm is a mutual company owned by its policyholders, with no shareholders to pay.

Discounts

State Farm ahead

State Farm takes discounts on 11 published against Costco's 9 published.

Costco

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

State Farm

Eleven published discounts, including a 25% good-student discount and up to 40% off medical coverage for passive restraints. Drive Safe & Save pairs the app with a mailed Bluetooth beacon.

Digital experience

Too close to call

Neither pulls ahead on digital experience: Costco posts Not published and State Farm 4.79 iOS / 4.6 Android, a difference too small to choose on.

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.

State Farm

4.79 on the App Store and 4.6 on Google Play across 1.7 million combined ratings — consistently strong on both platforms, which is rarer than it should be.

So which one?

Pick Costco if…

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

Read the full Costco review →

Pick State Farm if…

You are among drivers who want a local agent rather than an app.
You want the lower complaint record — State Farm sits at About the expected number.
Financial strength is a priority; State Farm holds A++ from AM Best.
You expect to stack discounts — State Farm's lineup is the broader of the two.

Read the full State Farm review →

Costco vs State Farm, answered

The questions people ask before switching between these two.

Is Costco or State Farm cheaper?

Which handles claims better, Costco or State Farm?

Is Costco better than State Farm overall?

Can I switch from Costco to State Farm mid-policy?

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