Toyota Drivers Won’t Suffer Higher Auto Insurance Rates

Posted in Auto Insurance

February 12th, 2010

Toyota drivers will be happy to know that after millions of vehicles have been recalled by the company, they’re auto insurance rates should not be affected. Just a few weeks ago, owners of various Toyota models were recalled for accelerator issues. After the panic of the issue itself, many drivers were scared that their auto insurance rates would rise or they would not be covered if in a car accident with a faulty vehicle.

About the Toyota Recall

In January 2010, auto manufacturer Toyota Motor Sales announced that it would need to recall millions of vehicles due to proof that some have problems with the accelerator sticking or the brakes failing. In the following weeks, the number of vehicles jumped from an estimated 2 million to 8.5 million.

The vehicles recalled include:

• 2005-2010 Avalon
• 2010 Prius
• 2007-2010 Camry
• 2009-2010 RAV4
• 2009-2010 Corolla
• 2008-2010 Sequoia
• 2008-2010 Highlander
• 2005-2010 Tacoma
• 2009-2010 Matrix
• 2007-2010 Tundra
• 2004-2009 Prius
• 2009-2010 VENZA

Because so many vehicles were recalled, owners immediately became concerned about their auto insurance rates. However, word on the street is that the Toyota recall won’t have a negative effect on insurance.

What Insurers Are Saying

According to a recent report from ABC News, State Farm and Allstate Corp. both say that individuals with vehicles affected by the Toyota recall will be covered if they’re in a car accident. More specifically, if insurance investigators determine that a faulty accelerator or brake caused the accident, the insurer will pay the claim and look for reimbursement from Toyota.

And while initially the customer will be responsible for the deductible, insurers say that if Toyota reimburses them, they will most likely return part or all of the deductible to the customer.

As for rates, insurers say a recall is usually not enough to cause auto insurance rates to increase. They note, however, that a contributing factor in rising rates would be if there was a significant increase in accidents due to the faulty parts.

While the good news is that the Toyota recall shouldn’t affect your coverage, there are other factors that can raise your rates. So be sure to visit Go Insurance Rates to ensure you’re not paying too much for auto insurance coverage.