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If you bought a home insurance through costco but then you don't renew your costco membership, what will happen to your home insurance? Does the insurance premium go up?

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    @Max what do the Terms and Conditions of the insurance say?
    – Vicky
    Commented Dec 2, 2023 at 10:18

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Costco isn't an insurance company. They provide discounts om policies. Whenever you see an add for insurance always read the find print in the add to get a hint at the underlying policy information.

From the Costco website: Costco Members Could Save on Auto and Home Insurance

Costco members who saved reported an average of $595.86 in auto insurance savings the first year they switched2 to CONNECT, powered by American Family Insurance.1

Following that footnote to the fine print:

1 CONNECT, powered by American Family Insurance, is the brand name of American Family Connect Property and Casualty Insurance Company and American Family Connect Insurance Company, De Pere, WI. Auto policies are underwritten by either company depending on the state. Property policies are underwritten and issued by affiliates ...

...Each insurer is solely responsible for the claims on its policies and pays the Agency for policies sold. In Texas, certain property coverages may be underwritten by Ranchers & Farmers Mutual Insurance Company. Prices, coverages and privacy policies vary among these insurers. Each company has sole financial responsibility for its products. Specific products, discounts, and savings may vary and may not be available in all states in accordance with state filings and applicable law. Insurance availability may vary by region or state. Discounts and savings vary by state and apply to certain coverages. Certain restrictions and limitations apply. Costco Insurance Agency, Inc. is not licensed in New York state. Insurance products are not obtained through the Costco Insurance Agency, Inc. in New York. Costco Wholesale, Costco Insurance Agency, Inc. and its subsidiaries do not underwrite insurance, pay claims or guarantee any of the products or services offered by CONNECT.

So Costco has a deal to offer discounts on policies offered in various states by various companies.

So you have to decide if that underlying company offers quality insurance, with good customer service.

I would imagine that periodically the insurance company asks for proof of membership. If you have let your Costco membership lapse, they will raise your rates. If you don't want to pay the higher rates, then you will switch.

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  • Note: "savings the first year". This may only be a first-year discount even if you retain the Costco membership. Read all the fine print and ask questions before signing.
    – keshlam
    Commented Dec 2, 2023 at 18:56
  • Thanks, @deshlam. I think that sentence just means that in the first year, members saved that amount of money. It doesn't mean in future years they will not save, although of course that's not guaranteed either.
    – Mas
    Commented Dec 2, 2023 at 19:18
  • @keshlam The "savings first year" statement is the typical advertising phrase. Every insurance company says that new customers save $x compared to their old company. That is meaningless because most people won't switch if the new company charges more. Most won't switch if is saves $42 a year; but they will switch if it saves them hundreds of $'s; unless they are switching for non-monetary reasons.
    – mhoran_psprep
    Commented Dec 4, 2023 at 16:25

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