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

Q: Is Costco or USAA 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 USAA's $1,588/yr. The only way to know is to quote both.

Q: Which handles claims better, Costco or USAA?

Neither has a clear edge. Costco scores Not rated and USAA 741/1,000 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 USAA 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. USAA scores 4.6 out of 5. Compare them on the individual categories above, and on the quotes you actually get.

Q: Can I switch from Costco to USAA 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

USAA

Across our six scoring categories, Costco comes out ahead in 0, USAA in 2, 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. USAA 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 USAA, side by side

Category

CostcoRead the full review

USAARead 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

5.0$1,588/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

5.0741/1,000

J.D. Power 2025 claims study — scored but not ranked (military-only eligibility), 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

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

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

4.513 published

Discounts on the carrier's own pages · Telematics: SafePilot and SafePilot Miles

Better

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

Not published

No app-store presence we could verify

5.04.80 iOS / 4.7 Android

App Store (2.3M ratings) and Google Play (492K ratings), August 2026

Availability

40 states, members only

All 50 states and D.C., but only for the military community and their families

Best suited to

Costco Executive Members who value guaranteed renewal

military members, veterans and their families

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

CostcoUSAA

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 USAA's $1,588/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.

USAA

$1,588 a year for full coverage, 33% below the national average and the lowest figure in this review by a clear margin.

Claims satisfaction

Too close to call

Neither pulls ahead on claims satisfaction: Costco posts Not rated and USAA 741/1,000, 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.

USAA

741 out of 1,000 — second-highest score in the J.D. Power 2025 study, though USAA is excluded from the official ranking because its military-only eligibility fails the study's award criteria.

Complaint record

Too close to call

Neither pulls ahead on complaint record: Costco posts More than expected and USAA More than expected, a difference too small to choose on.

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.

USAA

More complaints than expected for its size, which is the one figure that genuinely cuts against USAA's reputation and deserves to be stated plainly.

Financial strength

USAA ahead

USAA 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.

USAA

AM Best A++, the highest rating issued.

Discounts

USAA ahead

USAA takes discounts on 13 published against Costco's 9 published.

Costco

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

USAA

Thirteen discounts including some no one else offers — up to 60% for vehicle storage during deployment and up to 15% for garaging on base.

Digital experience

Too close to call

Neither pulls ahead on digital experience: Costco posts Not published and USAA 4.80 iOS / 4.7 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.

USAA

4.8 on the App Store and 4.7 on Google Play, the best combined app ratings here — though the app bundles banking and insurance, so it is not a pure auto signal.

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 USAA if…

You are among military members, veterans and their families.
Financial strength is a priority; USAA holds A++ from AM Best.
You expect to stack discounts — USAA's lineup is the broader of the two.
Availability fits: All 50 states and D.C., but only for the military community and their families.

Read the full USAA review →

Costco vs USAA, answered

The questions people ask before switching between these two.

Is Costco or USAA cheaper?

Which handles claims better, Costco or USAA?

Is Costco better than USAA overall?

Can I switch from Costco to USAA mid-policy?

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