Toyota Breaks Into Insurance Market

Toyota Breaks Into Insurance Market

Toyota has begun to sell its first branded auto insurance coverage under the name Toyota Auto Insurance in Arizona, Illinois, Indiana, Ohio and South Carolina.

It will soon expand to Georgia, Missouri, Tennessee and Texas. The insurance agency said it would add more states in the coming months.

Aioi Nissay Dowa Insurance Services, Toyota Financial Services International Corp., and Toyota Connected formed Toyota Insurance Management Solutions. The agency is a property/casualty independent agency in Japan.

To offer car insurance online, the car manufacturer established the agency in April 2016. Since then, the agency has expanded its offerings to include home, renters, RV and pet insurance. Using telematics, Toyota began offering a usage-based auto insurance product in 2018. 

Toyota offers its insurance in many forms. Customers can purchase an insurance plan through the mobile app, call center agents, dealerships, and Toyota's website.

Toyota Auto Insurance is underwritten by Toggle, a digital and embedded insurance company within Farmers Insurance. Toggle will handle claims. 

A Toyota-certified collision center, a rental car program and roadside assistance will be provided through the insurance program. Pet passengers or rideshare drivers will be covered as well. 

In addition to Toyota vehicles, non-Toyota vehicles in customers' households can also be covered.

"With Toyota Auto Insurance, we can truly enhance the complete ownership experience for our customers," said Will Nicklas, Toyota Insurance Management Solutions’ chief operating officer.

There is no shortage of automakers looking to move into the insurance market. GM, Stellantis, and Tesla are also looking at monetizing their data collection and customer relationships.