The biggest retailer in the US announced on Wednesday that it will partner up with AutoInsurance.com and will provide its customers with “a one stop shop” for their auto insurance. That doesn’t mean that Wal-Mart will sell car insurance. It means that the Wal-Mart customers will be able to click on a link on walmart.com or go to the autoinsurance.com site and get quotes from different car insurance providers like Safeco, Esurance and Progressive. The customers can then select the policy and the price that will meet their needs the best. The Wal-Mart auto insurance will be promoted in stores, via displays.
The new service has already been made available in eight states, including Louisiana, Arkansas, Mississippi, Oklahoma, Missouri, Pennsylvania, Texas and Tennessee. Wal-Mart is planning a nationwide release of their new collaborative service in the coming months.
The new Wal-Mart auto insurance will save the customers money, Wal-Mart representatives say. According to a pilot program survey, customers who purchased insurances from autoinsurance.com saved about $1,168 a year.
“We are always looking for ways to reduce complexity, increase transparency, and give everyday low prices to Wal-Mart shoppers,” said Daniel Eckert, senior vice president of services at Wal-Mart. Eckert further explained that the new site is very simple and will help customers with most of the coverage information.
The new Wal-Mart auto insurance service was inspired by a discussion with Tranzutary Insurance Solutions, an insurance broker that runs the site. This announcement is Wal-Mart’s latest move into financial services. This month, they announced that they will be entering the money transfer business, competing with companies like Western Union and MoneyGram. With this service, customers can transfer money within the Wal-Mart stores. The transfer fee is actually lower than most of the competitors.
The new Wal-Mart auto insurance – what’s next?
Most of Wal-Mart’s financial services target people who do not have access to a bank account, either because they cannot afford to pay the high fees or they do not have stable jobs that will help them keep a minimum balance.
Before the new Wal-Mart auto insurance service, Wal-Mart offered check cashing and prepaid cards in its stores. They have also partnered with American Express to offer checking and debit accounts that don’t require a minimum balance or any monthly maintenance fees.
What do you think of the new Wal-Mart auto insurance service? Do you think it makes things easier for those who want to insure their cars? Leave your comment in the section below.