State Farm Asks Toyota to Reimburse Pedal Claims
Only months after Toyota recalled millions of vehicles for faulty sticky pedals, auto insurer State Farm is asking the car manufacturer to reimburse it for claims paid out on associated crashes.
According to a recent USA Today article, the auto insurance company is demanding repayment from Toyota for an amount that could total between $20 and $30 million.
About the Toyota Recalls
If youre not familiar with the Toyota recalls then heres a quick recap. At the beginning of 2010, Toyota recalled millions of its vehicles for a number of issues, including accelerators sticking (also known as sticky pedals) and brakes failing. These issues caused accidents and resulted in owners having to park their cars until they were able to be fixed.
To help remedy the situation, car insurance companies like State Farm paid out claims for the accidents caused by faulty vehicles. However, the insurer now says it wants its money back.
If the insurer is paid back, the result could also benefit auto insurance customers affected by the faulty cars. If State farm is reimbursed then their customers who filed claims on their Toyotas could be refunded any insurance deductibles they paid. However, it has been noted that customers should not look for a check any time soon because all determinations associated with the issue could take months.
What about Customer Auto Insurance Rates
Many customers have been concerned about how their auto insurance rates will be affected by all of the changes going on with Toyota. Originally, experts thought that customers wouldnt suffer higher rates due to the recall.
However, some insurance industry spokespeople now think that if Toyota refuses to reimburse State Farm or other insurers for the claims, car insurance companies could end up charging higher rates to cover Toyota vehicles.
If you own a Toyota, have you seen a difference in your auto insurance rates?