Costco offers two kinds of personal memberships: Gold Star and Executive. The cost difference between them is $65 ($65 for Gold Star and $130 for Executive). But an Executive membership lets you earn 2% back on all qualifying Costco purchases up to a maximum of $1,250 per year. Members who choose the Executive membership are usually those who can spend enough in a 12-month period ($6,500) to cover the cost of their entire membership fee.
If that information has you yawning, then you're probably (a) already an Executive member or (b) aren't one but have done a little research. Regardless of which category you fall into, there are certainly some little-known Executive perks that deserve some more attention -- like these three.
1. Extra perks on insurance
Members can already save big on insurance through Costco's partnership with CONNECT, an arm of American Family Insurance. According to Costco, members save roughly $600 on auto insurance in the first year they switch to CONNECT.
Executive members, however, get extra perks. Executive members who buy car insurance will also get roadside assistance, which covers up to $75 for minor problems like flat tires and dead batteries.
They also get lifetime renewability. This means CONNECT won't drop you after you get into an accident or file a claim. There are some exclusions to this policy (for example, CONNECT could drop you if you don't pay your premiums), so check the benefits page for more information.
CONNECT home insurance also offers extra benefits to Executive members. Home glass repair reimbursement, for instance, will cover up to $1,000 per occurrence with a maximum of two occurrences per year. Meanwhile, home lockout assistance will cover up to $100 per occurrence with a maximum of two occurrences per year.
2. Cash back on travel plans
As mentioned above, Executive members can earn 2% back on qualifying Costco purchases. And, yes, that includes Costco Travel bookings.
This 2% back on travel can make an Executive membership worth buying for a single trip alone. Say, for instance, that you book a five-day trip to Mexico for you and your partner for $5,000. If you can then spend $1,500 at Costco on your regular shopping, you would have earned enough cash back to cover your membership dues.
Better yet, you can double-dip rewards. That is, you can earn 2% back on your Costco membership and rewards on a travel credit card. This could mean getting a fair chunk of change returned to you in the form of cash back, reward points, or miles.
3. Costco Connection magazine
Okay, this one is definitely not as cool as the former two. But if you're a magazine kind of person, an Executive membership will entitle you to a monthly copy of Costco Connection. Each edition includes health tips, business advice, recipes, member stories, and some book reviews.
Even if you're not an Executive member, you can view the magazine for free online. But only Executive members can have a paper copy of it delivered to their door.
An Executive membership entitles you to the perks mentioned above. Of course, for many people, its main draw is the 2% back on qualifying Costco purchases. Combine this with a good credit card to use at Costco and you could reduce your out-of-pocket spending at your favorite wholesale club.
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3 Little Known Perks of a Costco Executive Membership was originally published by The Motley Fool