Membership Type
If you’re not a Costco member, you may not know that there are two main membership levels for individuals—Gold Star and Gold Star Executive. The Gold Star membership is $60 annually, while the Gold Star Executive is $120 annually. We’ve been Costco members for almost ten years now, and the first year, we had a Gold Star membership. However, the second year, once we learned about Costco’s amazing benefits and perks for Gold Star Executive members, we chose that card and have every year since.
Although a Gold Star Executive membership costs $60 more, we find it worthwhile, and after the 2% cash back the Gold Star Executive membership gives, we rarely have to pay the full $120 membership fee when it’s time to renew.
Costco Benefits I Love
There are so many reasons why I love Costco and wouldn’t think of canceling my membership. These are just a few. (Note that some are only available to Gold Star Executive members, not Gold Star members.)
Cheap Organic Food
As much as possible, we try to feed our family organic food. Of course, we’re also on a tight grocery budget, so we’re not always able to do that. However, Costco makes eating organic food on a budget much easier. While a traditional grocery store may offer three heads of organic Romaine lettuce for $2.99 a package, Costco offers a 6-pack of Romaine heads for $3.99. Likewise, you can buy a whole pound of organic spinach for $3.99, which is a much better price over the small 5 oz. bags you can buy at the grocery store for $1.99 to $2.99 or more!
Gas
What can I say? Whenever possible, I try to buy gas at Costco. Currently, gas in our location is $2.55 to $2.59. But when I pull up to a Costco gas pump, the price is only $2.29. Since my minivan takes 20 gallons of gas, that is a $6 savings every time I fill up. Of course, buying discounted gas at Costco is a perk for members with any card type, so no matter what type of membership you have, you can save. Over the course of a year, this savings will likely cover the cost of a basic Gold Star membership if not a Gold Star Executive membership.
2% Cash Back on Purchases and Travel
For almost every item you purchase (excluding gas, alcohol, postage stamps, and a few other items), you will receive a 2% cash back, up to a limit of $1,000 cash back. That cash back accrues all year long, and within three months of your membership renewal date, Costco will send you a check for your 2% cash back as well as your renewal notice.
We shop at Costco frequently, especially since they have such reasonable prices on dairy and gluten-free foods as well as organic foods. Almost every year, our cashback is at least $60, meaning that our cashback covers the price of the upgrade to a Gold Star Executive card. Of course, you don’t have to use the cash back to pay for your membership. You can also use it to score some free groceries, but we use it to offset the membership price.
Recently, Costco has also begun to offer 2% back on travel, which I’m very excited about because we use their travel services several times a year for my husband’s work travel.
Special Rental Car Rates
As part of their Travel program, Costco offers special rental car rates. My husband frequently travels for work, and we’ve been booking our car rentals through the rental agency of our choice using Costco’s travel site. Rental car rates through Costco are affordable, often offering an up to 25% discount over the price of just booking the car rental ourselves. Even better, now the cost of the car rental is included in our 2% cash back as Executive card members.
We’ve only used the rental car service, but you can also book flights through Costco as well as vacation packages for a substantial discount.
Benefits I Haven’t Used Yet
While the above benefits are more than enough to make an annual Costco membership worthwhile for me, there are many other benefits that we have not yet used but plan to.
Car Buying Negotiating
One of our current vehicles has nearly 200,000 miles on it, so we will be in the new car market sooner rather than later. When we are shopping for a car, one Costco benefit I intend to explore is the Costco Auto Program. Costco negotiates a price for you on a new vehicle through approved dealers on the Costco website. You don’t have to do any of the haggling. You’re just presented with a discounted price, which you can choose to accept or decline. According to some of the positive reviewers, they saved significantly. One reviewer said by going through the Costco program, she saved $3,000.
Remember, Costco not only will negotiate the price of a new car, but also a lease, and lease renewals, if you prefer to lease rather than buy.
Tires
Although I haven’t priced them, many members say that Costco offers the lowest price on tires, especially if you’re able to time your purchase to the few times a year Costco offers sales on certain types of tires. Also, Costco offers free tire rotation for the life of the tires, so many members bring their car in for tire rotation and then go shop at Costco. By the time they’re done, the rotation is done, and they’re on their way with no time lost.
We’ll be in the market for new tires in just a few months, and I plan to check Costco’s price first.
Insurance
Costco offers a full range of insurance services including life insurance, auto insurance, home insurance, and even health, vision and dental insurance. (Most of the medically related insurance is available for small businesses that have a Costco membership.) I haven’t used these yet, but when my husband and I prepare to buy our next life insurance policy, I plan to check with Costco first.
The One Costco Benefit I’ll Never Use
There’s one Costco benefit I’ll never use, just because I have no use for it, though millions of Americans do.
Identity Theft Protection
Costco offers identity protection at a discount, currently $8.99 per person for Gold Star Executive members and $13.99 per person for Gold Star members. This is one service I will likely never take advantage of because my husband and I freeze our credit, but if I were in the market for this service, I would definitely shop Costco first.
Conclusions
A Costco membership can make a great Christmas gift to give or receive, but any time of year, I’d highly recommend one. You’ll likely find that your Costco membership pays for itself several times over during the year. Also, keep in mind that if you get a membership and you’re not pleased, you can ask Costco for a full refund.
