NEW YORK - Volvo Cars of North America Inc. and Liberty Mutual Group have formed an alliance to offer discounted insurance rates to the 1.4 million Volvo owners in the United States.
Besides lower rates for its customers, Volvo gets another benefit from the program - Liberty Mutual will insist that only genuine Volvo parts are used in all covered body repair work.
'Our analysis of Volvo loss data makes Volvo customers an attractive group for us to work with,' said Joseph Aniello, vice president of marketing sales for Liberty Mutual.
Liberty already insures more than 26,000 Volvos. Holders of those policies will be immediately eligible for the new 'Volvo Value Insurance' program.
Subject to state regulations, rates will start at about a 5 to 10 percent discount, compared with regular Liberty Mutual rates for Volvo owners.
The insurance company said buyers can earn discounts equal to as much as 35 percent off regular rates if they insure more than one car; if they have a safe driving record; or if their cars have passive restraints and antilock brakes or antitheft devices.
The program, which rolls out nationwide this month, also offers coverage for homes and other personal insurance.
BMW of North America Inc. also started a discount insurance program in early 1996, with TIG Insurance Co. The BMW program offers rates as much as 30 percent lower than competing rates for BMW owners.