Royal & SunAlliance (R&SA) has secured the affinity contract to underwrite Halfords' first venture into general insurance.
Halfords, the high street bicycle and motor retail giant, will be selling motor, bicycle and travel policies with immediate effect.
It is also looking to add pet and household products to the portfolio over the course of this year.
Tom Downey, R&SA's business manager of automotive and affinity, said: "Halfords has around 11 million customers a year and over 400 stores, so there is a substantial customer base to penetrate.
"We expect to be writing significant volumes through the brand."
R&SA is understood to have won the contract after a beauty parade involving several other insurers and third party affinity specialists.
The launch of Halfords offering will be accompanied by in-store and web promotions, and national television advertising.
R&SA has outsourced the administration of the travel policies to First Assist.
