In Canada, you can get a serious fine if you get pulled over while driving without car insurance. Not only is it compulsory, but this type of insurance can also help cover your vehicles, your family, and yourself against unforeseen events like damage, thefts, and accidents. Needless to say, car insurance is not something you should avoid or cheap out on.
If you’re looking for car insurance in Canada, there are plenty of brokerages available, such as Costco. Keep reading to find out if Costco car insurance is right for you.
Does Costco Canada Offer Car Insurance?
Technically, Costco doesn’t provide their own car insurance. They’ve partnered with a vehicle insurance brokerage called Inova. So, when you contact Costco’s car insurance line, they’ll put you in touch with a broker, who can connect you with various policies and rates through one of the companies Inova works with, including:
- Aviva Canada
- Intact Insurance
- Zenith Insurance
- Economical Insurance
- Cambridge Insurance
- Promutuel Insurance
Types Of Coverage Offered Through Costco Car Insurance
Before you apply for any form of insurance, it’s essential to understand that every provider offers different conditions and premiums for their policies. However, there are a few standard coverage types you can expect to get when you buy Costco car insurance:
Collision & Liability Coverage
- Liability – If you’re subject to legal ramifications after an auto incident, like a collision leading to death, bodily injury, or destruction of property, liability coverage protects you for up to $2,000,000 in lawsuit-related expenses.
- Collision – Following a hit-and-run, single-vehicle accident, or an at-fault accident, collision coverage protects you against repair costs. Depending on the situation, you may have to pay a deductible of $500, $1000, or the full damage amount.
Comprehensive Coverage
If your vehicle gets damaged during a non-traffic incident, like a fire, theft, or vandalism, comprehensive coverage also helps deal with the cost of repairs. Similar to collision coverage, you’ll typically be responsible for paying the first $500 or $1000. On the other hand, you can choose not to include a deductible if it’s more expensive than the repairs.
Keep in mind that comprehensive coverage is an optional extension that you can pay extra for. So, since most cars depreciate rapidly in value, it may not be a worthwhile expense for older vehicles that are less valuable than the price of your deductible.
Transportation Replacement
This is another optional coverage you can add to a Costco car insurance policy. It reimburses you for transportation costs when your car is held overnight at the garage for repairs after you make a claim (taxis, rentals, public, etc.).
Damage To Non-Owned Autos
Standard Costco car insurance doesn’t apply to rental vehicles in Canada or the US. So, if you habitually rent cars for business or travel, it may be smart to include this type of coverage in your policy. While it’s optional, it covers damage up to the limit stated in your policy in CAD. Plus, you won’t have to buy insurance from any rental companies.
Waiver Of Depreciation
As mentioned, most vehicles depreciate rapidly in value over time. Luckily, if your car ever gets damaged beyond repair, a waiver of depreciation ensures that you’ll receive the full purchase price of the car back when your claim pays out.
Note that this waiver is another option you can include in your Costco car insurance policy. It’s aimed at new cars (0 – 4 years old) that are damaged within the first few months of purchase. Additionally, drivers with spotty records may not qualify, meaning you could get denied if you cause a collision that results in the total loss of your car.
Accident Waiver
After an at-fault collision, an accident waiver prevents changes to your driver’s record or premium and you can include or exclude this waiver in your policy upon purchase.
Conviction Protector Endorsement
When you receive your first Minor Conviction, a conviction protector endorsement is an optional coverage that prevents you from losing your Conviction Free Discount during the process. Some providers don’t offer this coverage and including it in your Costco car insurance policy may restrict the number of options you qualify for.
Optional Accident Benefits
When you buy your insurance policy, there are several optional benefits you can add to it if you’re worried about the possibility of a car accident occurring in the future, including:
Medical, Rehabilitation, And Attendant Care (Catastrophic Injury)
A standard Costco auto insurance policy comes with up to $1,000,000 in coverage for catastrophic injuries that occur during a car accident. If necessary, you can also include reimbursement for medical, rehabilitation, and attendant care (professional care that you might need if your injury prevents you from caring for yourself).
This coverage reimburses you for up to $2,000,000 in related expenses that wouldn’t normally be covered by your provincial healthcare. When buying your car insurance policy, you can choose a limit of $1,000,000 or $2,000,000 for this benefit.
Medical, Rehabilitation, And Attendant Care (Non-Catastrophic Injury)
Reimbursement for medical, rehabilitation and attendant care for non-catastrophic injuries provides the same coverage, only in smaller amounts. For instance, standard Costco car insurance covers up to $65,000 in related costs, whereas this benefit offers limits of $65,000 or $130,000, or $1,000,000 for costs that aren’t covered by medicare.
Income Replacement
If an auto collision prevents you from working, a standard Costco car insurance policy replaces up to 70% of your gross weekly income, to a maximum of $400. You also have the option of increasing your coverage to $600 or $800 or $1000 per week.
Caregiver Benefit & Housekeeping And Home Maintenance Expenses
After a car accident, you may need a worker to look after your dependents or home until you recover. Thankfully, standard Costco car insurance reimburses for you up to:
- $250 weekly following catastrophic injuries for the first dependent
- An extra $50 weekly for every other dependent
- $100 a week for housekeeping
Once again, smaller amounts of coverage may be available for non-catastrophic injuries too (found under “All Injuries”).
Death And Funeral Benefit
If you pass away due to an auto accident but have this benefit included in your Costco car insurance policy, your family should receive two separate lump-sum payouts. The first goes directly to them and the second is to cover your funeral costs.
| Standard Costco Car Insurance | Increased Death & Funeral Benefit | |
| Your Spouse | $25,000 | $50,000 |
| Per Dependant | $10,000 | $20,000 |
| Funeral Costs | $6,000 | $8,000 |
Dependent Care Benefit
Unlike the other benefits above, standard Costco car insurance doesn’t come with Dependent Care coverage. So, if you think your children ever might need care because you’ve been injured in a car crash, you can purchase this benefit for:
- $75 per week for the first dependant
- +$25 per week for each additional dependant
At the moment, the maximum Dependent Care Benefit coverage limit is $150 per week.
Indexation Benefit
When it comes to car insurance, it’s important to understand that the prices for many options will go up over time, otherwise known as inflation. However, by including an indexation benefit in your Costco policy, you get a yearly inflation adjustment for certain Accident Benefits. Inflation rates are adjusted by the Consumer Price Index of Canada.
What Other Modifications Can You Add To A Costco Car Insurance Quote?
Prior to buying or renewing your car insurance policy through Costco, you might also want to consider modifying it in various ways, such as:
- Adding a Driver – If your spouse or dependents drive your vehicle, it’s smart to add them to your car insurance policy so they’re adequately covered too. Costco allows up to 4 drivers per online quote. Just scroll to the bottom of the “Driver Information” page and choose “Save and Add Another Driver”.
- Adding a Vehicle – Similar to drivers, Costco car insurance permits you to add a total of 4 vehicles for each online quote. You can do so by scrolling to the bottom of the “Vehicle Information” page and selecting “Save and Add Another Vehicle”.
Before you confirm your modified Costco car insurance policy, don’t forget that adding drivers and vehicles to your quote could lead to higher premiums.
How To Get A Costco Car Insurance Quote
Applying for Costco car insurance may take a few minutes but is a relatively simple process. Follow these steps:
#1 – Enter Your Vehicle Information
The type of car you drive can affect how much you’ll pay for your car insurance quote. Here are the details you need to submit your application:
- Your car’s make, model, and year
- Whether it’s financed, owned, or leased
- Its purchase date and general condition
- Approximately how many kilometres it’s driven per day
- What type of winter tires it has
- Where you normally park it at night
#2 – Enter Your Driver Information
Your driver’s record affects the cost of your quote too. Mandatory details include your:
- Name
- Age
- Address
- Gender
- Driver’s license information
- Driver history information
- Current car insurance provider
#3 – Enter Any Other Required Information
Costco will also offer you other options, like:
- Bundle Insurance – Save 20% by bundling your home and auto insurance.
- Mobile Apps – Select providers offer mobile apps that you can download and use to save up to 30% on your car insurance, as well as earn a better premium. These apps track your driving habits so you can get the best quotes possible.
#4 – Get Your Quote
Once you’ve entered the information above, all you have to do is:
- Obtain and customize your quote with any options or benefits you want
- Contact Costco online or by phone to inquire about buying car insurance
Pros And Cons Of Using Costco Car Insurance
Another important thing to do before you purchase car insurance from any of Costco’s partner providers is to weigh the benefits and drawbacks:
Pros
- Bunding your home and car insurance can give you 20% off your quote.
- Costco has a large network of brokers that can help you find the best options and rates possible, as well as assist you with claims and advice.
- Downloading the Inova mobile app and allowing it to track your driving activity (speed, hours, hard stops, etc.) can save you 30% on your quote.
Cons
- You must have a Costco membership to be eligible for car insurance.
- Costco car insurance is only available in certain provinces.
- Working with a broker can sometimes be more complicated and expensive than getting your car insurance directly through a provider.
Costco Car Insurance FAQs
What are my Costco car insurance payment options?
- Monthly pre-authorized payments from your chequing account
- Full credit card payments
Does my Costco car insurance quote include taxes?
Do I have to be a member to get car insurance through Costco?
How much is it to get a Costco membership?
Where can I get Costco car insurance in Canada?
Looking For the Best Car Insurance Quotes in Your Region?
If you’re a Canadian driver, car insurance is one of the most important things to have before you head out on the open road. Thankfully, Costco Wholesalers just might be the perfect brokerage for you. Check out the Costco online store or contact their customer service line for more information about their car insurance options today.
