Volvo City Safety and Liberty Mutual may make safety features mutually beneficial

In Europe, drivers of Volvos with advanced safety features have been getting discounts for years. In the United States, no insurance company offers discounts for safety features. However, Liberty Mutual auto insurance customers who drive a Volvo with active or passive advanced safety features may soon see a discount on their premium through Liberty Mutual’s new TechSafety program. In addition to encouraging the adoption of advanced and autonomous safety features among drivers through savings incentives, Liberty Mutual will also evaluate the impact these emerging features have on accident frequency and severity.

AUTO Connected Car News checked the current deal at Liberty Mutual’s website it shows a 10% discount. Because auto insurance reates vary greatly by state and zip code, it is not clear if the discount is worthwhile, yet.

A scientific study performed on collision avoidance systems in cars revealed that Volvo Cars’ standard City Safety technology reduces insurance claims for rear-end frontal collisions by 28 percent.

Insurance companies offered discounts of between 20-25% on insurance premiums in several markets around the world for the City Safety.

The program builds on the success of the Volvo City Safety technology which includes pedestrian, cyclist, and large animal detection with emergency autobrake.

 “We believe vehicles equipped with these types of advanced safety features will not only reduce crashes but help our customers worry less on the road while providing them new ways to save on their auto insurance,” said Hamid Mirza, senior vice president of product strategy and solutions at Liberty Mutual Insurance. “This agreement with Volvo represents an important opportunity to build upon the success of these new technologies now available to our customers.”

A January 2016 report from The Insurance Institute for Highway Safety (IIHS) showed that cars outfitted with Volvo City Safety reduced rear end crashes by 41 percent and injuries by 47 percent. Liberty Mutual will study the effects of these safety features, sharing the information with the manufacturer in an effort to help promote further advanced safety.

“Volvo continues to set the benchmark for automotive safety,” said Lex Kerssemakers, President and CEO of Volvo Car USA, “We are excited to work with Liberty Mutual and provide additional value to Volvo customers.”

Liberty Mutual Insurance and Volvo Car USA have collaborated since 2010, offering Volvo owners valuable savings and unique features to their auto policy through the Liberty Mutual affinity program. This program expansion now includes the TechSafety discount for Liberty Mutual auto insurance customers, allowing drivers to save up to an additional ten percent on their premiums with Volvo vehicles featuring City Safety technology. Beginning in April 2017, customers in Illinois will have access to this discount, rolling out to additional states throughout this year.  All Volvo vehicles with City Safety technology are eligible for the program.

“This new TechSafety program with Volvo reflects the importance of these two industries coming together to truly co-create new value for U.S. customers with a commitment to driving auto safety innovation,” said Sandeep Gupta, senior vice president of strategic partnerships at Liberty Mutual.  “We look forward to growing our relationship with Volvo through these emerging technologies to develop even more value for our customers both now and in the future.”