Volvo owners can now get their car insurance directly through Volvo. The company last week launched its own insurance agency, Volvo Car Insurance Services.
Despite having “car” in the name, the company says it will offer “a broad range of insurance solutions, including auto, home, umbrella, and select specialty products.” The agency is more of an insurance broker than a full insurance company. Volvo says its policies will be “underwritten by trusted providers.”
Owners can access quotes through the Volvo Cars App or by visiting https://www.volvocars.com/us/l/insurance-services/.
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Launches in 18 States
- It starts in just 18 states
- Insurance companies are increasingly regional, as some states prove riskier than others
It launches in Alabama, Arizona, Idaho, Illinois, Indiana, Kentucky, Maryland, Maine, Montana, New Hampshire, New Mexico, Ohio, Oregon, Pennsylvania, Tennessee, Utah, Vermont, and Wyoming.
Insurance companies have become more regional as fire and weather risks grow in certain states. Florida’s insurance costs have soared so high they’ve driven some insurers to abandon the state entirely. Insurers have cited weather risks for higher rates in California as well.
Not the First of Its Kind
- Tesla and Honda have similar offerings
- Volvo’s is structured to work with larger insurers
Volvo is not the first automaker to launch its own insurance arm.
Tesla also offers its own insurance company. Tesla’s project is unique. It’s an entirely separate insurance company, launched because Tesla products often cost more to insure than cars from any other non-exotic automaker.
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Tesla cars can cost more to repair than most because of the way they are structured. The battery in a Tesla is a structural part of the car. That makes them simpler to manufacture, but means that even light damage can necessitate replacing an expensive battery.
Tesla insurance, with a risk pool consisting entirely of expensive-to-repair cars, differs from the traditional insurance model.
Honda kicked off Honda Insurance Solutions in July. Honda’s offering serves all 50 states.
However, like Volvo’s offering, it’s essentially a skin on top of existing insurance companies. That should help keep costs down, since owners will be buying their insurance through Honda or Volvo, but entering a more diverse risk pool made up of cars from many manufacturers.
Volvo Car Insurance Services may also give owners “the option to use Volvo Genuine Parts, helping to ensure repairs meet the highest standards of performance and safety,” the company says.
