Auto insurance

Toyota Auto Insurance expands to Texas

Toyota Auto Insurance expands to Texas

By Dave LaChance
on
Announcements | Insurance

Toyota Auto Insurance (TAI), the OEM-branded insurance product launched in December, is now sold in Texas – the nation’s second-largest insurance market, the company said. Coverage applies to vehicles built by Toyota and other manufacturers and includes an endorsement stipulating the use of genuine parts in repairs, when available, unless the customer opts out.

TAI described the news as a “major milestone” for the product, which is now available in eight states: Illinois, Indiana, Ohio, South Carolina, Arizona, Missouri, Tennessee and Texas.

“Not only is Texas the second most populous state in the nation, it is also home to the North American headquarters of Toyota and Toyota Motor Manufacturing, Texas (TMMTX),” the company said in a press release. The San Antonio plant produces the Toyota Tundra full-size pickup truck and the Sequoia SUV.

When the product was launched, Vincent Bray, vice president of Toyota Financial Services, told Repairer Driven News that the use of OEM parts “is one of the main advantages of Toyota Auto Insurance and is particularly attractive to customers. When customers contact us, we highlight this feature as one of the many good reasons to choose this product.”

Bray said customers are offered a starting price that includes OEM parts approval for vehicles 10 years and newer. The customer has the choice to remove the endorsement, as well as the choice to add it to non-Toyota vehicles under 10 years old, he said.

Without the current endorsement, the standard policy states that payment will be made for “parts of the same kind and quality”, which could come from “other sources such as manufacturers or suppliers of rebuilt parts, suppliers of quality, non-original equipment manufacturer recycled (used) parts.”

Toyota’s official position strongly recommends the use of genuine parts and strongly advises against aftermarket, rebuilt and salvage parts,”[d]due to the sensitive nature of safety and performance systems and their effect on vehicle crashworthiness.

TAI is not a product of the automaker directly, but of Toyota Insurance Management Solutions (TIMS). According to Insurance Journal, TIMS is a joint venture between Aioi Nissay Dowa Insurance Services, Toyota Financial Services International Corp. and Toyota Connected. It is an independent, P&C approved insurance agency.

In Texas, TAI is underwritten by Texas County Mutual Insurance Company.

TAI will be sold through Toyota’s website, mobile app, call center agents and participating Toyota dealerships. Insurance is underwritten by Toggle, the underwriter owned by Farmers Insurance.

Rob Spencer, chief operating officer of Toyota Insurance, said the product will be available “in even more states in the near future,” but did not provide details.

Toyota is one of many OEMs to offer its own branded insurance. Others include Tesla, General Motors and Stellantis.

More information

Toyota launches new car insurance product, with optional genuine parts option

Pictures

A 2023 Toyota Sequoia. (Supplied by Toyota)

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