Costco partners with Pafco (part of Intact Financial) to offer auto insurance to Executive members in most provinces. The program leverages Costco's group buying power to negotiate rates that are often 10 to 20 percent below the provincial average. However, "often" is not "always," and your individual rate depends on your driving history, location, vehicle, and coverage needs.
The catch is that you need an Executive membership ($130 per year) to qualify. If you are already an Executive member for the grocery and gas savings, the insurance is a nice bonus to explore. But upgrading from Gold Star ($65) just for insurance only makes sense if the premium savings exceed the $65 difference.
Not all provinces have access to the Costco insurance program, and coverage options may be more limited than what you would find shopping the open market. The application process is straightforward, but you should always compare the Costco quote against at least three or four other insurers before committing.
The real value here is using the Costco quote as a negotiating tool. Even if you do not end up going with Pafco, having a competitive quote in hand gives you leverage when calling other insurers to ask them to match or beat the price.
Pros
- +Group rates through Intact/Pafco often 10-20% below average
- +Convenient if you already have Executive membership
- +Backed by Intact Financial, one of Canada's largest insurers
- +Good negotiating leverage even if you choose another provider
Cons
- −Requires Executive membership ($130/year)
- −Not available in all provinces
- −Coverage options may be more limited than open-market insurers
- −Not guaranteed to be the cheapest quote for your situation
- −Rate depends heavily on individual factors
The Bottom Line
Get a quote and compare — but don't assume it's automatically the cheapest. Always shop around.
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