Toyota owners in select states can now get auto insurance that’s integrated with other vehicle ownership benefits and that they can purchase through the Toyota’s mobile app, call center, participating dealers or a dedicated website.
Toyota Auto Insurance is being offered by the automaker’s exclusive insurance agency, Toyota Insurance Management Solutions (TIMS). This is the company’s first branded insurance product.
“We are excited to bring our flagship auto insurance product to market,” Will Nicklas, chief operating officer of TIMS, said in a press release. “With Toyota Auto Insurance, we can truly enhance the complete Toyota ownership experience for our customers.”
Complementing the Vehicle Ownership Experience
With the launch of this auto insurance, Toyota joins other automakers in adding products and services that provide them with recurring revenue long after the customer has purchased the car, and often using connected technology to do it.
The company is positioning Toyota Auto Insurance as something that will build upon its other services and complement the ownership experience. For example, it provides discounted pricing and Toyota Genuine Parts for repairs; it gets owners back on the road quickly by working with Toyota Certified Collision Centers and Rent-a-Toyota programs, and it ensures they don’t pay for the same thing twice by integrating with vehicle ownership benefits such as Toyota Care Roadside Assistance.
“We look forward to expanding this product even further, including empowering Toyota owners to seamlessly use their driving data for additional insurance discounts,” Nicklas said.
TIMS already helps its insurance company partners provide usage-based insurance, which uses driving data to determine how much the customer pays. When a customer opts in to share their driving data for that purpose, Toyota transmits the data to TIMS, which in turn sends it to the insurance company.
Since 2016, TIMS has provided Toyota drivers with a one-stop shop at which they can access insurance quotes and coverage from its insurance company partners. The company says that providing this service, it aims to positively influence the Toyota ownership experience.
TIMS is now offering its own branded Toyota Auto Insurance in Arizona, Illinois, Indiana, Ohio and South Carolina; will soon expand it to Georgia, Missouri, Tennessee and Texas, and will then add future states in the coming months.
Offering Customers Software-Based Services
Days before Toyota announced this insurance program, automaker Stellantis said it will begin offering usage-based auto insurance through its captive finance arms. During a Tuesday (Dec. 7) digital event outlining its software strategy through 2030, executives said the auto insurance will be launched in 2022 in Europe and North America and will then be expanded globally. It will leverage the company’s capability to collect data from connected cars.
“If the past was about increasing margins by moving customers north in hardware and trim levels, our future is about offering customers software-based services,” said Mamatha Chamarthi, senior vice president software business and product at Stellantis.
Read more: Car OEMs Use Subscription Services to Boost Resale Value, Driver Personalization
Another automaker, Tesla, announced the launch of its telematics insurance product in October. For Tesla owners who opt in, the company will remotely monitor their driving practices and use that data to determine the driver’s auto insurance premium. This was launched in Texas in October and will expand to other states as it gains regulatory approvals.
“At Tesla, because our cars are connected, because they are essentially computers on wheels, there are enormous amounts of data that we have available to us to be able to assess the attributes of a driver who’s operating a car and whether those attributes correlate with safety,” Zachary Kirkhorn, chief financial officer of Tesla, said during the company’s third-quarter earnings call.
Read more: Tesla Starts Rollout of Auto Insurance Based on Driving Practices