The local AAA affiliate has entered the insurance business after receiving state approval to sell automobile, homeowners' and life insurance to Hawai'i automobile association members.

The move increases choices for consumers and competition for insurance providers.

"They are a good-size competitor, and a benefit to our market here," said State Insurance Commissioner J.P. Schmidt.

AAA Hawai'i has about 120,000 members statewide. The company has hired about nine employees to help sell insurance, and anticipates increasing staffing as the new line of business grows.

"It's been a product that our members have been asking for for a long time," said Quyen Le, AAA Hawai'i insurance manager.

AAA Hawai'i insurance is being underwritten by Interinsurance Exchange of the Automobile Club, an affiliate of the Automobile Club of Southern California that provides insurance for AAA auto clubs in seven states.

Schmidt said Interinsurance Exchange has an outstanding customer service reputation in other states where it operates, which include California, New Mexico, Texas, New Hampshire, Vermont and Maine.

The California club has provided insurance to members since 1912, and insures about 1 million vehicles in that state. Club spokesman Jeff Spring said the company is also among the top five homeowners' insurance providers in California.

The California club acquired AAA Hawai'i in 1996.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.