Costco is known for offering discounts to its members. Outside of its physical stores, it partners with Connect to offer home, auto and umbrella insurance. It recently expanded into the pet insurance space by partnering with Figo Pet Insurance.
If you’re a Costco member, you automatically receive a 15% discount on your pet insurance policy through Figo. Learn more about Costo’s pet insurance options so you can decide if it’s the best pet insurance company for you and your furry friend.
Pros and Cons of Costco Pet Insurance
+ Short 1-day waiting period for accidents
+ 100% reimbursement rate
+ Pet Cloud app to manage your policy, submit claims and connect with local pet parents
– Doesn’t cover pets younger than 8 weeks old
– Deductible options depend on your pet’s age
– Long 6-month waiting period for orthopedic conditions for dogs
About Costco Pet Insurance
Founded in 1983, Costco is best known for its membership-only big-box retail stores, where members receive discounted prices on everyday groceries, clothing and household products. The company partnered with Figo Pet Insurance in August 2021 to offer its members exclusive savings on pet insurance.
Figo Pet Insurance was founded in 2013 and is underwritten by the Independence American Insurance Company (IAIC), which has an A- rating from AM* Best. Figo is available nationwide and has reimbursed more than $79.9 million to pet parents.
*AM Best ratings accurate as of November 2022
Costco Pet Insurance’s Plans and Coverage
We’ve broken down each of Costco’s base pet insurance plans below. It also offers several optional “powerups” (or add-ons) for additional coverage.
Costco offers three accident-and-illness plans covering diseases, injuries and emergencies. The only difference between the plans is their annual coverage limits, which are as follows:
- Essential: $5,000 annual limit
- Preferred: $10,000 annual limit
- Ultimate: Unlimited annual coverage
Each plan covers diagnostic testing, hospitalization, surgeries, prosthetics, prescription medications, emergency care, rehabilitation and alternative therapies if your pet gets sick or injured. Costco’s accident-and-illness policy also covers veterinary care related to the following conditions:
- Accidental injuries (such as broken bones, bite wounds and swallowed objects)
- General illnesses (such as infections, diarrhea and cough)
- Serious illnesses (such as cancer and diabetes)
- Hereditary and congenital conditions (such as hip dysplasia, respiratory defects and diabetes)
- Chronic conditions (such as allergies, arthritis and seizures)
- Orthopedic conditions (such as a cruciate ligament tear)
Costco offers three optional add-on packages referred to as “powerups.” You can tack these on to your base policy for an additional monthly fee.
- Extra care pack: This add-on covers the costs of specific circumstances such as cremation and burial, lost pet advertising and rewards, vacation cancellation for a pet emergency, pet theft, boarding fees and up to $10,000 for damage your pet causes.
- Veterinary exams: This add-on covers exam fees related to diagnosing your pet with a covered illness or injury and the required treatments. It doesn’t cover exams related to preventive care.
- Wellness: This powerup covers your pet’s preventive care, including vaccinations, spay/neuter surgery, blood work, and flea/tick/heartworm prevention. It’s offered at two levels: The Basic level covers up to $135 annually and the Premium level covers up to $250 annually.
Like all pet insurance providers, Costco doesn’t cover preexisting conditions. Preexisting conditions refer to any condition your pet showed symptoms or was diagnosed with before your coverage began. This includes any injury or illness that occurred during your policy’s waiting period, or the period of time you must wait after enrolling in a plan before coverage begins. Costco’s waiting period is one day for accidents and 14 days for illnesses, which is standard across the industry.
Costco Pet Insurance also excludes the following services from coverage:
- Breeding/pregnancy related costs
- Cosmetic surgery
- Cloning procedures
- Elective surgery
- Experimental procedures
- Preventive dental care
- Preventive care (unless you purchase the Wellness powerup)
- Prescription food (unless you purchase the Veterinary Exam Fee powerup)
Costco’s Plan Customizations
Here are the customization options Costco offers with its plans.
- Deductibles: Costco’s annual deductibles fluctuate depending on your pet’s age at the time of enrollment. These are the options:
- Pets 5 years old and younger: $100, $250, $500, $75
- Pets between 6 and 9 years old: $250, $500, $750, $1,000
- Pets 10 years and older: $500, $750, $1,000, $1,500
- Annual limits: $5,000, $10,000, unlimited
- Reimbursement rates: 70%, 80%, 90%, 100%
Costco’s monthly premiums depend on several factors, including the annual limit, deductible and reimbursement rate you select. Your location and other details, such as your pet’s species, age, gender and breed, also affect your premium.
To get an idea of Costco’s average monthly pricing, we compiled quotes for various cat and dog breeds in Raleigh, N.C., using a $250 deductible, 80% reimbursement rate and $5,000 annual coverage limit.
Costco offers a 15% discount to its Gold Star and Business Members on their pet insurance plan. Executive and Business Executive Members receive 15% off, and the $15 policy enrollment fee is waived.
Though there aren’t any direct reviews of Costco’s pet insurance offerings, we reviewed and analyzed more than 100 customer reviews for Figo. Many policyholders raved about Figo’s easy and efficient claims process and compassionate customer service representatives. However, some customers referenced random price hikes, slow reimbursements and unfairly denied claims. We contacted Figo to comment on the negative reviews but did not receive a response.
Read a sampling of Figo customer reviews from Yelp and Trustpilot:
“I have been very pleased with Figo pet insurance. I chose them after considering Embrace, Trupanion, MetLife, etc. I am so glad that I did. I find the app very easy to navigate and claims easy to submit. My pup has been a sickly fellow and Figo has been a lifesaver, literally. I highly recommend this company!” —Karen K., Yelp
“We love Figo! I have only had the best interactions with their employees. Every single person has been so kind and helpful. Our claims have been processed quickly and anytime I have a question they are quick to respond.” —M.W., Yelp
“We had Figo pet insurance for our older dog for the last three years of her life. When she needed to be hospitalized and have extensive testing and treatment it was a big relief knowing that a portion of the final cost (over $11,000) would be covered. Filing the claim was easy and it was processed and paid within a week and a half. They paid exactly what the policy said they should. I’m dropping one star because the annual price increases meant I had to adjust the coverage options each year. I also wish that the surcharge to cover exam fees wasn’t quite as high.” —Frank M., Yelp
“I think Figo can be great! They started off amazing but when it came time to make a claim I was very disappointed. My dog got really sick and was in and out of the hospital for 3 days. Come to find out he had an allergic reaction to something but the symptoms he was showing were vomiting, lethargy, and not eating. Since I had said at one vet appointment less than a year previous that he had vomited, it was considered a preexisting condition, so it was not covered to the full amount. I used to work as a vet assistant and almost any condition a dog ends up with, the symptoms are vomiting, diarrhea and not eating. So to say that he had vomited once before that had nothing to do with an allergic reaction and it be considered preexisting was crazy to me. Other than that, the insurance for my cat has been great. Hope it continues to get better.” —Anonymous customer, Trustpilot
Costco Pet Insurance vs. Competitors
See how Costco Pet Insurance compares to other top providers in the table below.
The Bottom Line: Costco Pet Insurance
Costco Pet Insurance — offered through Figo — is worth considering, especially if you’re a Costco member. It offers numerous customization options, including unlimited annual coverage and a 100% reimbursement rate. Figo’s Pet Cloud app makes it easy to submit claims, manage your policy and communicate with other local pet parents. However, it varies deductibles based on your pet’s age and has a long waiting period for illnesses.
Methodology: Our System for Ranking the Best Pet Insurance Companies
Our review of pet insurance companies is based on in-depth industry research that includes reading hundreds of customer reviews, simulating the quote and purchasing process, speaking to representatives on the phone to assess the customer service experience and surveying 1,000 dog and cat owners nationwide to determine the most important elements of pet insurance coverage.
We scored each provider on a 100-point scale based on those elements. We then divided the points earned for each provider’s final score on a 5-point scale.
Here are more details about each factor and how they’re weighted:
- Monthly pricing (25 points): How much each company charges for its pet insurance plans is an important part of a customer’s decision. The best pet insurance companies combine comprehensive coverage and plan options with affordable rates.
- Plans (15 points): The top pet insurance companies offer accident and illness plans, accident-only plans and wellness or preventive care add-ons to give customers the option to choose a plan that’s best for their pet.
- Covered treatments (15 points): With this factor, we scored companies based on the treatments and procedures they cover. Companies with a breadth of included treatments and unique coverages received more points than providers with more standard or general policies.
- Customization options (10 points): Customizing your policy is a valuable way to ensure you only pay for what your pet needs. Providers with more annual-limit, deductible and reimbursement-rate options earned the highest scores.
- Customer care (10 points): We scored companies on their website accessibility and overall usability, customer service availability, mobile apps (if any), money-back guarantees and veterinarian telehealth options, awarding points to the insurers with more customer experience offerings.
- Industry reputation (10 points): To determine each company’s industry reputation, we reviewed up-to-date ratings and accreditation information from the Better Business Bureau (BBB) and scored companies on their years of experience in the industry and their state availability.
- Waiting periods (10 points): Companies with shorter accident, illness and orthopedic waiting periods between the sign-up and coverage start date scored higher than companies with longer waiting periods.
- Eligible age (5 points): Some companies don’t offer policies for pets that are over a certain age. We deducted points from providers that have age limits for covered pets.
We use our rating system to compare and contrast each company against key factors to help us determine the best pet insurance companies in the industry. Additionally, we keep our research up to date and revisit our reviews on a regular basis.