Wesfarmers-owned Kmart plans to sell a car insurance product through its Tyre and Auto chain.

Two weeks after insuranceNEWS.com.au exclusively reported Wesfarmers’ plans for a private motor insurance product to be sold through one of its retail operations, Kmart has announced it will go head to head with the majors for a stake in the $5 billion car insurance market.

The move continues the commodotisation of personal lines, following announcements late last year by Virgin Money and Australia Post of new car insurance products.

The Kmart offering will be underwritten by Wesfarmers subsidiary Lumley Insurance and will include comprehensive, third-party fire and theft and third-party property damage.

Kmart Tyre and Auto Service will sell the insurance throughout its network of more than 250 service centres.

Despite an increasingly crowded market place, MD John Sink says branching out to insurance makes sense for Kmart Tyre & Auto.

“Insurance is a logical way we can extend our services and help customers cover more of their automotive needs,” he said.

The Kmart move complements Wesfarmers’ introduction of householders’ insurance products through its Coles stores. Wesfarmers MD Richard Goyder told insuranceNEWS.com.au two weeks ago the Tasmanian Coles stores’ trial is continuing.