There has been another announcement of a relationship between insurance and an auto manufacturer.
State Farm and Volvo are collaborating to provide Volvo customers across the U.S. with access to car insurance options when they buy a car. Volvo customers can initiate a quote, be connected to a State Farm agent, and purchase insurance coverage as part of the vehicle shopping process.
The State Farm deal is with Volvo Car Financial Services U.S., a wholly owned subsidiary of the Swedish car maker that provides financial services products to Volvo customers and Volvo retailers in the U.S.
“Making insurance straightforward and simple is another way State Farm is helping meet drivers where they are,” said State Farm Corporate Development Executive Jordan Sax. “Our alignment with Volvo’s core values of safety and simplicity supports our effort to help more people in more ways – it’s about delivering help at every step.”
This is not the only insurance offer from the Swedish car maker. In August, Volvo launched an independent insurance agency that offers car insurance for Volvos along with home and umbrella insurance. The Mahwah, New Jersey-based Volvo insurance agency represents five major carriers: Nationwide, The Hartford, Progressive, Travelers and Liberty Mutual. The agency launched in Arizona, Illinois and Pennsylvania, with plans to launch in 15 more states. Customers can access insurance directly through the Volvo Cars App or online.
The Volvo collaborations are among a number that have taken shape in recent years between original equipment manufacturers (OEMs) and insurance distributors in the U.S. Honda, BMW, Rivian and Toyota have insurance agencies that offer policies from various carriers. Hyundai and Volkswagen partner with several carriers.
Nationwide Mutual Insurance Co. underwrites the Ford Insure usage-based program. The Ford Pro Insure program for commercial vehicles is underwritten by The American Road Insurance Co., a Ford subsidiary and is sold and administered by Pie Insurance.
Other OEMs have taken the underwriting route. GM Insurance policies in the U.S. are underwritten by GM Financial Insurance Co., which was previously OnStar Insurance. Tesla now underwrites its own insurance policies through Tesla Property & Casualty and Tesla General Insurance in most states where it offers insurance.
In related news, In The Car, an embedded insurance platform, announced that it has filed a U.S. provisional patent application for its technology that delivers personalized auto insurance in real time to customers during new car purchases or service appointments. The patented system enables OEMs and automotive dealerships to provide customers individualized insurance quotes near instantly. The new technology can be seamlessly integrated into the automobile dealer’s sales process.
Related: Future of Auto Insurance: OEM-Insurer Ties Could Boost Profits, Loyalty
A recent 2025 report by Deloitte, “Reinventing the insurance customer experience for loyalty,” highlighted how collaboration among OEMs, insurers and captives could drive the future of auto insurance while helping both attract and retain customers.
As reported by Carrier Management, OEMs and auto insurers share a similar woe. Customer loyalty for OEMs reached an eight-year low in 2023, while insurers face churn in the wake of rising auto premiums and changing needs. Providing a seamless insurance journey for customers requires OEMs and their captives to create a mutually beneficial relationship with insurers and customers to build loyalty, boost profitability and define the future to secure a competitive advantage, the Deloitte report stated.
“OEMs, captives, dealers and carriers should consider integrating personalized insurance offerings into a set of streamlined purchase, leasing, and repair processes that incentivize customers to stay within the brand,” the authors added. “Collaboration could allow insurers, OEMs, and captives to banish pain points and invent new, desirable outcomes for customers—effectively building a one-stop shop through undeniable convenience.”
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