Everything to Know About Costco Executive Membership Rental Car Insurance

Costco offers executive membership rental car insurance, which gives its members affordable coverage, benefits, and discounts on rental vehicles. However, there is little room for customization and no bundling options.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Written by Sara Routhier
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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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UPDATED: Apr 14, 2022

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In A Nutshell

  • Members under 25 can receive a Costco rental car insurance discount, but they must pay an underage driver fee
  • Only one out of three of the membership types offered by Costco offer car rental insurance benefits
  • Rental car insurance policies are available at a discounted rate to Costco members

Are you curious about Costco executive membership rental car insurance and what benefits it can offer you? Costco is a leading chain of wholesale club stores in the United States, and its executive membership enables members to enjoy great car insurance rates and book rental cars fast.

Keep reading to learn more about Costco and how its executive membership rental car insurance policy can save you money, protect your rental vehicle, and offer you peace of mind when investing in a rental car.

Get a free auto insurance quote today if you are browsing the market for the best car insurance rates.

Getting Costco Executive Membership Rental Car Insurance

According to research from Statista, Costco has over 111 million members, with a location in almost every U.S. state. Over the years, Costco has become a household name that people trust, and your relationship with the company doesn’t have to end at wholesale products.

If you’re an executive member and looking for ways to save, consider researching the company’s rental car insurance benefits.

Age Requirements

Members commonly ask if Costco rental car insurance has an age requirement. Costco shouldn’t deny you executive membership rental car insurance if you have a legal driver’s license and are within the legal driving age.

According to the Journal of Advanced Transportation, there are higher rates of car crashes for drivers under 25, so they can expect to receive an underage driver fee on their account.

Types of Memberships

Another requirement for receiving the Costco rental car insurance discount is a membership with the company. There are two types of membership options Costco members can select.

The gold star membership at Costco is the company’s basic plan, costing $60 a year for one membership card. The gold star membership is available at all Costco locations in the United States.

The executive membership at Costco costs $120 a year, and each plan includes one free card per household. The executive membership is available at all Costco locations in the United States.

In addition to its annual 2% reward for qualifying purchases, Costco’s executive membership has several benefits for your vehicle, including a 25% discount on Budget truck rentals and 15% off parts, accessories, and services with participating shops.

Rental car insurance benefits are only available to Costco members with an exclusive membership. If you’re interested in Costco’s executive membership rental car insurance, there are a few ways you can upgrade your membership for eligibility, listed below:

  • Log in to Costco.com and verify your membership to make changes. 
  • Visit a nearby Costco location and speak with its staff about upgrading.
  • Call member services.

If you are already an executive member, keep reading to learn how Costco’s rental car insurance process operates and see if it’s an excellent fit for you.

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How does rental car insurance work?

Suppose you purchase a rental vehicle for your weekend out of town and get into an accident. Do you know how you will cover the expenses that may occur in the aftermath?

Rental car insurance can protect you from experiencing a traumatic and unpredictable event and being stuck handling the surprising auto repair bills. Rental car insurance policies can cover a variety of common scenarios, including:

  • Property damage. Property damage coverage applies to damage you inflicted on another person’s property during an accident. It does not apply to your rental vehicle.
  • Damage to another vehicle. This policy covers damage to other vehicles in a collision you caused.
  • Theft. If items get stolen from your rental vehicle, your policy may cover them. However, car insurance will not cover the expenses if the vehicle gets stolen.

It’s important to know that even though car rental insurance is convenient, the law does not require it. However, since most rental car companies have policies that would barely cover you after an accident, your decision to enroll in car rental insurance should protect yourself, protect other drivers, and help you make responsible driving decisions.  

There are four common types of rental car insurance coverage listed below.

Collision Damage Coverage

Collision damage coverage is an insurance type that helps cover the cost of car repairs or damages in an accident. With collision damage coverage, it doesn’t matter if another driver hit you or if you were at fault. This policy will cover your rental car, no matter who was responsible for the accident.

Supplemental Liability Insurance Coverage

Supplemental liability insurance coverage can help cover expenses associated with any injuries you get in a car accident. This coverage insures you in an accident, but it can also cover medical costs for other drivers involved in the collision. 

Personal Accident Insurance Coverage

Personal accident insurance coverage is supplemental insurance you can add to your policy. This insurance type can protect you in the event of an accident that causes death or disability.

Personal Effects Coverage

Personal effects coverage is a coverage type that covers you for theft or loss during an accident. This coverage can extend beyond the driver and to any other drivers involved, including any member of their immediate family. 

What benefits does Costco executive membership rental car insurance offer?

While Costco does not directly offer rental car insurance, it enables you to book rental cars through the company, and your affiliation with the company can unlock car rental discounts and other benefits, including:

  • Savings. Members can save money using a Costco car rental discount code. They can also receive discounts on other auto services.
  • Instant reservations. Costco executive membership rental car insurance has partnered with Alamo, Avis, Budget, and Enterprise, so its members can reserve vehicles instantly and receive great deals when they rent a vehicle from any of these companies.
  • International coverage. Costco offers international rental car insurance policies in Canada, France, and Germany.
  • Rewards. Executive members enrolled in Costco’s rental car insurance can receive an annual 2% cashback reward per rental.
  • Costco rental car upgrade. Drive in style and comfort in a safe vehicle rental during your trip. If any issues occur, you can rest assured knowing your insurance policy protects you.

In addition to car rental insurance, Costco offers other benefits for your automobile that can make traveling easier for its members.

An Overview of Costco Executive Membership Rental Car insurance

Costco’s executive membership auto insurance offers a lot to members on the go. If we look at what $120 per year provides an executive member, are you impressed by your membership, or are you searching for something more?

Costco rental car insurance can offer members a discount of up to 25% off. While Costco does a great job providing discounts and affordable rates, there is little room for customization and no bundling options since these policies come from third-party companies.

If you have a trip coming up and already have an executive member with Costco, this is a convenient and affordable option already available to you.

Start comparing car insurance rates today before deciding on the best car rental insurance policy.


  1. https://www.statista.com/statistics/718406/costco-number-memberships/
  2. https://www.hindawi.com/journals/jat/2017/8757891/

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