Toyota’s insurance arm has begun selling Toyota Auto Insurance in five states, with promises of more widespread availability to come. The coverage applies to vehicles built by Toyota along with other manufacturers, and includes a rider stipulating the use of OEM parts in repairs, when available, unless the client opts out.
“We're feeling using OEM parts is one of the key advantages of Toyota Auto Insurance and it is appealing to customers,” Vincent Bray, cigerettes president with Toyota Financial Services, told Repairer Driven News. “When customers contact us, this feature is something we highlight among the many great good reasons to select this product.”
Bray said clients are quoted a starting price which includes the OEM parts endorsement for vehicles 10 years old and newer. The customer has the choice to take away the endorsement, as well as the option to add it to non-Toyota vehicles that are under 10 years of age, he explained.
He suggested that stripping the endorsement might attract customers “who are looking for a more budget-oriented solution.”
Without the endorsement essentially, the conventional policy states that payment is going to be designed for “like kind and quality parts,” that might originate from “other sources such as manufacturers or suppliers of rebuilt parts, quality recycled parts suppliers and non-original equipment manufacturers.”
Toyota’s official position strongly stands out on the utilization of OEM parts, and strongly recommends against aftermarket, rebuilt and salvage parts, “[d]ue to the sensitive nature of safety and performance systems as well as their effect on vehicle crashworthiness.”
“Genuine Toyota, Lexus and Scion Parts are constructed using metals with specific properties, thicknesses and design characteristics, created to perform inside a consistent and predictable way throughout a collision event. Using non-OEM components can compromise overall crashworthiness and occupant safety in a subsequent collision,” Toyota Bulletin #180, revised in December 2022, reads.
The the policy make no mention of the OEM procedures, or of the preference for using certified repair facilities. Under the heading “Keep your Toyota a Toyota” on the Toyota Auto Insurance website, clients are offered “use of options like Genuine Toyota parts and Toyota repair facilities, so you can drive with confidence.” The option of a repair center may be the right of shoppers in most 50 states, and thus no “access” towards the choice of a certified shop would be required.
Toyota Car insurance is a product not from the automaker directly, but of Toyota Insurance Management Solutions . Based on the Insurance Journal, TIMS is “some pot venture between Aioi Nissay Dowa Insurance Services, Toyota Financial Services International Corp., and Toyota Connected. It's a licensed property/casualty independent insurance company.”
Toyota Auto Insurance is currently available in Arizona, Illinois, Indiana, Ohio and South Carolina, and will soon be offered in Georgia, Missouri, Tennessee and Texas, Toyota said inside a press release. It asserted future states is going to be put in the approaching months.
TAI is going to be sold through Toyota’s website, mobile app, call center agents and also at participating Toyota dealerships. The insurance coverage is based on Toggle, the underwriter owned by Farmers Insurance.
TIMS has previously partnered with Travelers, Nationwide, Kemper, Progressive, Safeco, Bristol West, Foremost, National General, Clearcover and Mercury. These insurers offer OEM parts coverage for the next premium:
“Select TIMS partner insurance companies offer the option to use Original Equipment Manufacturer parts for repair if you find an available OEM part,” the TIMS website states. A footnoted disclosure adds, “Original equipment parts endorsement is optional; additional charges apply. Terms, conditions, and limitations apply.”
A usage-based insurance product called BrightDrive, launched by Toyota in February 2022 in conjunction with Nationwide, also requires an optional, added-cost rider for OEM parts coverage. However, just like TAI, the default TIMS BrightDrive policy offered includes that rider.
The “Original Parts Replacement Coverage” endorsement offered with TAI sets forth the next :
For an additional premium, the following coverage is provided.
A. INSURING AGREEMENT
Under Part IV – Harm to Your Car, Insuring Agreement, the following is added:
It is agreed that coverage is provided for that car on the Declarations Page in which a premium is shown with this coverage and:
1. The insured car isn't any a lot more than ten model years of age.
2. The insured car was purchased, licensed for and is used only upon public highways in the usa.
B. LIMITS OF LIABILITY
Under Part IV – Damage to Your vehicle, for every car on the Declarations Page in which a fees are shown with this coverage, the Limits of Liability are changed to incorporate the following:
Our limits of liability for loss for your car shall not exceed the amount essential to repair or replace the parts with new parts designed for or through the original equipment manufacturer, when available.
The Original Equipment Manufacturer Parts Coverage won't apply when your car is much more than ten model years old. This coverage doesn't apply to a utility trailer not owned by you or perhaps a listed driver. This coverage does not affect total losses. This endorsement is a part of the insurance policy. It changes the policy so please see clearly carefully. All other terms and conditions of the policy continue to apply.
In its press release, Toyota said that TAI “offers customers a quick, easy and flexible policy purchase process.” It noted the insurance “seamlessly integrates with Toyota vehicle benefits for example Toyota Care Roadside Assistance, so customers won't purchase something their Toyota already provides”
The product “is customizable depending on how customers use their Toyota vehicle and their lifestyle, having a number of options including coverage for rideshare drivers or pet passengers. Non-Toyota vehicles within the customer's household could be covered too,” Toyota noted.
Not currently offered with Toyota Auto Insurance, Toyota said, is a UBI option.
“We are excited to bring our flagship car insurance product to promote. With Toyota Auto Insurance, we can truly boost the complete Toyota ownership experience for our customers,” Will Nicklas, chief operating officer of TIMS, said inside a news release. “We anticipate expanding this product even further, including empowering Toyota proprietors to seamlessly use their driving data for further insurance discounts.”
