If you drive a recalled Toyota you might have called your insurance company by now. The big question seems to be whether you are covered in case your car has a runaway accident or a brake failure. The answer is coming from two major insurers, State Farm and Allstate Corp. The short answer is “yes” reports ABC News. You will be covered if you have an accident in a recalled vehicle. If Toyota pays the claim and the insurer is reimbursed, the customer may be able to see part of their deductible returned. But your insurance company will probably go after Toyota to make good on the claim.
Get Recalled Items Fixed
There is a catch. If you have a recalled car, and even if you don’t believe Toyota yet has the “fix,” you still need to bring that vehicle into the dealer to have it repaired as soon as the dealer has the appropriate part. To delay and suffer a wreck later may mean the insurer holds you at least partially responsible. The insurer would also have a more difficult time collecting from Toyota.
Will Insurance Rates Rise?
Does all of this mean that at the end of the day you will be paying more for auto insurance?
Typically a recall does not cause insurance companies to raise their rates, but this is anything but a common recall. The number of claims filed drives up rates and insurance experts say it is unlikely that there will be enough runaway Toyotas and brake problems to be substantial enough to do so.
Even with the value of a Toyota dropping about four to eight percent, observers predict that is temporary and should return whenever the problems are fixed. They warn against dumping your Toyota at a bargain basement price.
Let’s hope that Toyota admits it has a problem and finds a solution and fast before more people are injured or killed. If you have been hurt in a recalled Toyota, you would be well-advised to consult with a Florida consumer attorney who can update you on the recall status and inform you how best to preserve your rights in the face of pending litigation.
