Volvo’s New Subscription Service Includes Insurance
Volvo is launching a new Care By Volvo program that is basically a subscription service for SUVs. The Swedish automaker announced details of the program at Wednesday’s Los Angeles Auto Show. Care By Volvo will be rolling out nationally.
Pricing for Care By Volvo’s subscription plan starts at $600 a month (exclusive of tax and registration costs). The company says that the subscription service is an all-inclusive program. There is no down payment required for the vehicle. All the customer has to pay for is the gas they use.
The Care By Volvo price includes insurance, concierge service, roadside assistance and nearly all general maintenance. Subscribers will be covered by a Liberty Mutual Insurance policy offering $250,000 bodily injury protection per person and $500,000 bodily injury coverage per accident. A $500 deductible applies to both comprehensive and collision coverage. While this may seem a little odd in the U.S., in other countries, it’s actually quite common to get insurance through a car company.
Subscribers won’t be able to select any Volvo they want. For the base price, subscribers will get to use the 2019 XC40 compact SUV that’s due in dealers this spring as their vehicle. The vehicle has a panoramic roof, 19-inch black diamond cut wheels, heated front seats and a heated steering wheel. The list price of the standard XC40 will begin at $35,200.
Choosing the better-equipped R-Design, with a Harman Kardon Premium Sound and 20-inch, 5 double spoke matte diamond cut wheels, will cost an extra $100 monthly. Program terms call for a 24-month duration and 15,000 miles per year. Subscribers will be provided with an option to change vehicles and sign a new 24-month term agreement after 12 months.
Subscription-based car models are a new opportunity for automakers. Very few of them have waded into the market. Cadillac is one of the exceptions. The Book By Cadillac program offers access to nearly any vehicle in the brand’s portfolio for a single price, about $1,800 a month. However, its subscription service is only available in select major cities.
This follows last week’s news that Volvo plans to sell “tens of thousands” of autonomous-ready XC90s to Uber. The SUVs will be used for the ride sharer’s self-driving livery vehicle service. Volvo plans to deliver the self-driving vehicles between 2019 and 2021.