The automaker has started selling TAI in five states, with the intention of widening its availability.
Toyota Auto Insurance (TAI) is now available to drivers in five states across the US, with assurances from the automaker’s coverage arm that its availability will become more widespread.
The coverage is available to drivers of vehicles made by the automaker as well as other manufacturers.
Toyota Auto Insurance can be purchased by drivers of vehicles made by that automaker. That said, it is also available to people driving cars made by other manufacturers as well. The coverage includes a rider that stipulates that OEM parts will be used when repairs are made, provided they are available, unless the policyholder has opted out of that option.
“We feel the use of OEM parts is one of the key benefits of Toyota Auto Insurance and is particularly appealing to customers,” said Toyota Financial Services Vice President Vincent Bray in a recent Repairer Driven News article. “When customers contact us, this feature is something we highlight as one of the many great reasons to select this product.”
Toyota Auto Insurance customers are quoted a starting price for coverage including OEM parts endorsement.
This applies to all vehicles 10 years old or newer. This provides the customer with the opportunity to choose the OEM parts endorsement or to remove the endorsement altogether. The customer also has the choice to add that option to vehicles that weren’t made by the automaker, provided they are newer than 10 years old.
According to Bray, he can see that option out of the OEM parts endorsement might seem like an appealing choice for customers “who are looking for a more budget-oriented solution.” For those who choose not to keep the endorsement, the standard TAI policy will require that payment will be made for “like kind and quality parts,” and that they will need to be obtained from “other sources such as manufacturers or suppliers of rebuilt parts, quality recycled (used) parts suppliers and non-original equipment manufacturers.”
That said, the automaker’s position on the OEM parts endorsement in the Toyota Auto Insurance coverage is that it is strongly recommended, and that it strongly recommends against rebuilt, salvaged or aftermarket parts because of “the sensitive nature of safety and performance systems and their effect on vehicle crashworthiness.”