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Your manual should have guidance on chains. According to my manual (for a 2000 XC) and the dealer, chains will not fit on the stock 205 tires because of limited inside clearance. The only traction aids that will fit are a special (and expensive!) device called the Spikes Spider (www.spikes-spider.com) that attaches to a hub you put on the wheel at the beginning of the season.
I've tried low profile Z chains on 195 winter tires and they seem to fit without rubbing. When you use chains they must go on the front tires of a Volvo AWD because these are the primary drive wheels.
You can find tire chain laws for many states at www.tirechain.com. I used to live in California and could never figure out how they decided which traction device controls to require. They sometimes required chains on all vehicles without exception just because there was a lot of traffic and a little ice. On less traveled mountain highways 4WD with mud & snow (M+S) tires was acceptable. The law says you still must carry chains even if you don't need them; it says nothing about what you do if the car cannot use chains.
If you have M+S tires (which California considers to be snow tires) you will be fine for all but special situations when chains are required on all vehicles. If you have tires without the M+S designation, your only options are a second set of 4 tires or the Spikes-Spider.
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