Wal-Mart to offer auto insurance

Wal-Mart said it is in touch with AutoInsurance.com in order to offer auto insurance to customers.

Wal-Mart won’t sell insurance itself, but its clients may click via a linkage on walmart.com, or they may directly go to autoinsurance.com to have competitive quotes from many car insurance companies like Safeco, Esurance and Progressive, to select the price and policy which is best for their requirements. The service will be promoted by Wal-Mart by displays in its retail stores.

Already the service is available in 8 states – Texas, Tennessee, Pennsylvania, Oklahoma, Missouri, Mississippi, Louisiana and Arkansas.

According to Wal-Mart customers will save money by using the service. The company quoted a survey it carried out in Pennsylvania last year, where clients who bought policies from autoinsurance.com said they saved $1,168 in a year on average.

Wal-Mart informed that the service invented after talks with an insurance broker, Tranzutary Insurance Solutions, which operate the site.

The declaration is the latest in giant retailer’s aggressive progress into fiscal services lately.

Earlier this month, Wal-Mart declared it was getting into the money transfer business in order to compete with MoneyGram and Western Union.

By using the service, customers will have the facility to transfer money inside Wal-Mart stores all over the country for a fee which is comparatively lower than rivals.

Most of Wal-Mart's financial service products are directed at those who don't have access to banking accounts, since they either don't have secure enough jobs in order to have a minimum balance or can't afford the high fees.

Wal-Mart also provides prepaid cards as well as check cashing. Additionally, it has joined with American Express to provide Bluebird, a checking and debit option which does not need a monthly maintenance fee or minimum balance.

This is Wal-Mart's technique of countering a decline in sales lately. In February, Wal-Mart announced a fall in profit and reduced its prospect for the year due to health care costs and higher taxes.