I have to say - I love this, and would very much use it. With the rise of the sharing economy, I envisage true utility models developing for everything that we do (see my article, Frictionless Insurance in a Land of Utility).
Such models take away various pain points by wrapping everything into one, including insurance, and providing extreme convenience to the end user. For a manufacturer, it also helps with the flow of new and used vehicles into the market. For me, this is the start of a landmark change in how and when we buy and use things.
"Care by Volvo customers will be able to drive away in a new Volvo without having to worry about the traditional extras such as down payments, maintenance and insurance," the company said in a statement.
This is not new of course, Peugeot had this many years ago with their 'just add fuel' campaign - but the re-emergence of this shows the increased desire to keep things simple including insurance!
As the old Paul Getty saying goes - "if it depreciates, rent it - if it appreciates - buy it!".
I expect many more initiatives to follow.
Volvo is hoping that drivers will be ready to upgrade their cars just like they do their phones: on an annual schedule. The Swedish automaker will now offer a 12-month subscription for its new XC40, which it's calling the "Care by Volvo" service. The concept is specifically designed to mimic the yearly refresh schedule consumers have grown accustomed to from smartphone makers.