3 Reasons to Cancel Your Sam's Club Membership and Join Costco Instead

Image source: Getty Images

Warehouse clubs can help you save money with the deals they offer consumers. Joining multiple clubs rarely makes sense, though, as each one comes with membership fees. Plus, there's a good amount of overlap in what the different clubs sell.

If you're a Sam's Club member, this doesn't mean Costco shouldn't be on your radar, though. In fact, Costco offers some benefits that Sam's doesn't -- and these benefits could justify a switch.

To help you decide if that's the case for you, take a look at three reasons why you might want to cancel your Sam's Club membership and join Costco instead.

1. Kirkland Signature brand products

Both Sam's and Costco have house-brand products. Sam's sells Member's Mark products and Costco sells Kirkland Signature products. Kirkland products are fewer in number than Member's Mark products. Around 350 are available. However, the quality exceeds the quantity.

Costco takes the quality of Kirkland products very seriously, with the CEO signing off personally on each one. The priority has always been to ensure the house-brand products are equal to or better than national brands, with prices at least 20% cheaper.

The warehouse club has largely succeeded in its objective of establishing Kirkland products as being both affordable and awesome. There are many devoted followers who love Costco's house-brand products with a passion. Sam's Club's in-house brands simply don't have the same devoted followers that Costco's do.

2. Discounts on home and auto coverage

Costco provides opportunities to save that Sam's Club doesn't. These opportunities go beyond the chance to purchase cheap products when you break out your credit cards at Costco warehouses.

Specifically, you can buy discounted home and auto insurance through Costco, but Sam's doesn't have a comparable option.

Costco reports that members were able to save an average of $595.86 when they signed up for auto insurance through the Costco partner, CONNECT. That's a lot of saved money just for switching to Costco from Sam's and taking advantage of its insurance offerings.

You'll still want to compare insurance costs and get a quote to make sure CONNECT really does offer you the best price before you switch your current coverage. However, the fact that Costco membership allows you to access this discounted auto insurance is just one key way in which this warehouse club does a little bit more to improve your financial situation than Sam's Club does for its members.

3. Bigger stores

Finally, size matters when it comes to warehouse club shopping. Both Costco and Sam's can be busy places filled with an endless stream of customers and thousands of large bulk items for sale. Having more breathing room to move around is a definite perk that can't be overlooked.

That's especially true since the size difference between Sam's Club and Costco isn't small. The average Costco store is around 147,000 square feet, while Sam's Club warehouse clubs average around 136,000 square feet. That's more than 11,000 square feet bigger. This makes a difference when you're trying to move around with your oversized shopping cart.

For all of these reasons, it's seriously worth thinking about switching from Sam's Club to Costco. Since Costco has a great return policy and will refund your membership fee if you aren't satisfied, you have nothing to lose by making the change and giving a new warehouse club a try.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy .