Costco is famous for giving you discounts on tons of frozen, fresh, non-perishable and packaged goods in bulk. What you may not be aware of is that Costco is also a provider of bulk car insurance. Costco has an incredibly strong customer base, and as potential incentive to them, they do offer the opportunity for those who come there on a frequent basis to get some nice coverage on the cars they use to get there.
The Fine Print
Costco provides car insurance in the same way that car dealerships are able to provide their customers with auto insurance: through underwriting. This means that when Geico and Progressive underwrite auto insurance to be ‘auto insurance companies’, they’ll take your insurance premium as long as you’ve got it covered with another claim. In a similar fashion, Costco Car Insurance works by essentially selling you somebody else’s car insurance and collects commissions for the job. The reason that this works so well is that insurance is tied directly to marketing strength; almost all of it is essentially the same, but the sales of it depends on what company is able to provide it in the most attractive way.
When Costco insures you, you’re actually being insured by a middleman called IDS Property Casualty Insurance Company and American Insurance Company. Both of the those companies trickle down from the Ameriprise Financial organization. As Ameriprise handles financial planning on consistent basis, it is no surprise that that they would also be heavily involved in insurance planning.
Is Costco Car Insurance Good?
Costco Insurance isn’t exactly going to blow your mind, and it it was, they would probably market it under their own name. The benefits of using Costco for your car insurance include, first of all, a discount just for already being a Costco member. You’re going to have access to your own, personal service that is tailored to all of your unique needs for car insurance. When you’re with Costco, you’ll have access to diverse coverage options and insurance claims that can be called up every single hour of the day. In addition, you’ll be able to have access to the repair facility of your own choosing. Costco auto insurance gives you safe driving, multiple vehicle coverage, and the access to more than just only one policy on your plan; Costco has always been famous for what you can buy in bulk, and their insurance reflects this. Just be sure that the quantity is still quality enough to seriously protect you on the road.
Myths about Auto Insurance
There are quite a number of myths that have spread out there as far as auto insurance is concerned. These myths have actually made quite a number of people shy away from buying auto insurance policies. As Costco Auto Insurance, we would like to debunk all these myths and give you a true and clear picture of what auto insurance is.
One common myth is that it costs more to insure red cars. The truth is the color of the vehicle is never taken into account in the calculation of car insurance rates. The factors that are taken into account are the age of the car, the size of the engine, body type, model, make and the year of manufacture. Driver information on the policy is also looked at.
A second common myth is that only the state- required minimum insurance amount is necessary to take. The truth is that a large number of the states have a minimum requirement for car insurance but this might not be sufficient for all your needs. In the event that you get involved in an accident, the minimum required policy might not be able to take care of all your damages. Talk to your independent agent will allow you to choose the best insurance policies for you; policies that will cater for all your needs.
Comprehensive coverage provides protection for drivers in all situations is another very common myth. Comprehensive coverage is only one of the protection types found on auto insurance policies. The others available include Uninsured Motorist, Collision, just to mention but a few. The comprehensive coverage only takes care of damage that results from events that are not collisions like weather, vandalism, theft, fire etc.
I will get to pay the same insurance rates that my neighbor pays is another myth. Insurance rates are always determined individually. There are quite a number of factors that auto insurance companies take into account when calculating rates for you and these include your marital status, the kind of vehicle, your driving record and age. Every individual has a unique situation thus no two individuals can be charged the same rates.
These myths have actually resulted in people having a misguided notion of auto insurance which results in them getting very disappointed when they go out to get policies we try as much as possible to ensure that you all have the facts right before you get your policy to shield you from any future disappointments.