9 Automakers in the Insurance Space

Carmakers have been dabbling in insurance over the past few years. While you may have heard about Tesla Insurance, you may not know that other carmakers, like Toyota, Ford and Mercedes-Benz, have also jumped into the game. While most of the carmakers selling insurance are partnering with the big carriers to customize policies, some automakers, like Tesla, GM and Rivian, actually write their own policies. Here is a breakdown of which carmakers are entering the insurance space and what they are promising drivers.

Key Takeaways Automakers are entering the insurance space by partnering with big carriers or offering their own insurance. With real-time usage insurance, drivers are promised with customized policies and potential savings. It’s not always cheaper to buy insurance from a car manufacturer, especially if you drive often or not-so-safely.

1. Tesla Insurance

Tesla Inc. created an insurance program that is tailored to take into account the workings of Tesla car features, specifically its autopilot and full self-driving (FSD) features. It’s an insurance program that is priced based on how much a car owner drives and how safely they drive. In the following states, a safety score is assigned to each driver based on their driving behavior.

Rates vary based on many factors, including a driver’s driving record and location. Tesla Insurance claims to cost 20% to 30% less than other insurers insuring a Tesla. Insuring more than one vehicle with Tesla Insurance results in a 12% discount on car insurance.

Tesla electric vehicles have built-in capabilities for tracking drivers. With Tesla insurance, you’re rated for real-time driving behavior, so you’ll pay more for:

• Harsh braking
• Speeding
• Harsh turns
• Nighttime driving
• Driving lots of miles

Tesla Insurance is available in the following states:

• Arizona
• California*
• Colorado
• Illinois
• Maryland
• Minnesota
• Nevada
• Ohio
• Oregon
• Texas
• Utah
• Virginia

*Tesla Real-Time Insurance is not available in California.

2. Swiss Re: BMW, Toyota and Lexus

In 2018, Swiss Re, the world’s largest reinsurer, partnered with BMW to change the insurance landscape. Together, they built the Swiss Re ADAS risk score, a vehicle-specific insurance rating that influences how primary insurance companies rate insurance premiums based on vehicle features and risks associated with each vehicle type.

While Swiss Re’s partnership has affected how BMWs get rated by insurance companies, Swiss Re does not underwrite auto insurance policies. They only influence how BMWs are rated based on safety-relevant driver assistance systems on these cars.

In 2020, Toyota and Lexus jumped on the Swiss Re bandwagon to receive new risk scores on vehicles which boast advanced driver assistance systems that are known to prevent crashes and should therefore cost less to insure.

3. Toyota Insurance

Toyota insurance is not really the carrier for policies, but an agency that promises to find the best rates for its car owners and car buyers. Toyota partners with some of the top insurance carriers to write car insurance policies and also homeowners insurance. These partners are:

• Travelers
• Chubb
• Liberty Mutual
• Bristol West
• Progressive
• Foremost
• Clearcover
• Safeco
• Toggle
• Pure
• Mercury
• Openly

So, when you buy insurance through Toyota insurance, your policy will actually be binding with one of the carriers listed above.

4. Ford Insurance With Ameriprise Home and Auto

On Ford’s website, they tell readers that they are no longer writing new policies with Ameriprise.^[1] However, those with existing policies can continue to be serviced through Ford.

5. Ford Insure With Nationwide

Ford’s new foray into the insurance space is through a partnership with Nationwide. Ford Insure offers car, home and pet insurance. For car insurance, Ford says that it can save drivers money by using real-time driving behavior to adjust rating based on safe driving, up to 40% after consistently driving safely. There’s also a discount for just signing up. To take advantage of this type of coverage, most 2020 or newer Ford or Lincoln vehicles can provide data to Nationwide. Otherwise, a traditional car insurance plan may be the only option.

As with all user-based insurance policies, the connected car will track and penalize the following:

• Harsh braking
• Speeding
• Driving at nighttime
• Idling
• Driving many miles

Ford Insure encourages bundling home, auto and even pet insurance, promising up to 20% in savings for bundle deals.^[2]

There are two parts to a Ford Insure policy: a base premium and a premium based on the mileage driven, so payments due will vary each month based on how many miles are driven.

Ford Insure is not available in the following states:

• Alaska
• Hawaii
• Louisiana
• North Carolina
• New York
• Oklahoma

Program criteria are different in the following states:

• California
• Ohio
• Oregon

6. Rivian With Nationwide and Cincinnati Insurance

Rivian Insurance offers car insurance as a user-based driving program as well as standard auto insurance. Rivian has a driving assistance program called Driver+, which reduces the risk of accidents. The more a Rivian driver uses Driver+, the more they are discounted on their monthly premium. Rivian’s user-based coverage is reliant on the built-in technology of Rivian vehicles, which tracks driving habits.

Driver+ can be activated according to the driver’s choosing and these are the semi-autonomous functions the vehicle offers:

• Automatic steering
• Lane change
• Speed change
• Cruise control
• Collision mitigation

Other types of coverage offered by Rivian include:

• Off-roading Coverage
• ATV Insurance
• RV Insurance
• Homeowners Insurance
• Boat & Watercraft Insurance
• Auto Insurance (for non-Rivian vehicles)

Also included with Rivian Insurance is Rivian Remote Care. Rivian vehicles have sensors and predictive algorithms, which help technicians diagnose issues remotely.

7. General Motors OnStar Insurance

Chevrolet, Buick, GMC and Cadillacs that are model year 2016 and newer are eligible for General Motors Insurance. Newer cars have built-in connectivity that allows OnStar Insurance to track driving behavior and offer discounts to safe drivers.

Safe drivers are awarded with accident forgiveness and a deductible waiver if that driver has demonstrated safe driving behavior over time and has an accident.

General Motors Insurance is expanding into more states but is currently only available in:

• Arizona
• Illinois
• Indiana
• Ohio
• Texas

Drivers receive discounts for:

• Smooth driving (no harsh braking)
• Driving at reasonable speeds
• Wearing a seatbelt
• Driving infrequently
• Avoiding driving late mornings and late at night
• Not idling

GM also offers traditional auto insurance for people who do not want user-based insurance and for cars model year 2015 and older.

8. Volvo Insurance With Liberty Mutual

Like the others, the customizable Volvo Insurance through Liberty Mutual means savings due to advanced technology, like the Volvo TechSafety Discount, which means drivers can save up to 10% on premiums if their car has City Safety collision warning. The RightTrack Reward offers 30% off for safe driving, if the car model enables Liberty Mutual to track driving behavior.

Volvo drivers who do buy Volvo Insurance also have access to a vast network of service providers that meet highest industry standards, if their car needs repairs.

Other benefits include:

• Better Car Replacement
• Accident Forgiveness
• Multi-policy Discount

9. Mercedes-Benz With Liberty Mutual

Mercedes-Benz has also partnered with Liberty Mutual to offer their car owners customized insurance policies, which are tailored to save Mercedes drivers money if they drive safely..

Like the other automakers, they offer telematics-based insurance solutions such as Pay-How-You-Drive, which allows safe drivers to earn a discount for low mileage and safe driving behavior.

Here are other discounts and benefits that apply with Mercedes Insurance:

• New Car Replacement (except in North Carolina and Wyoming)
• Accident Forgiveness (except in California)
• Original Mercedes-Benz Parts
• 12 Month Fixed Rate
• 24-hour Roadside Assistance
• Multi-car Discount