Toyota’s latest recall – Will your car insurance rate go up?

Are you a Toyota owner? Than you are probably asking yourself many questions after the recent recall. After making sure your car is safe to be on the road, you may be wandering what will this recall mean to your car insurance? Will there be an increase to your insurance rates Have the terms of your been cover changed?Does your car cost less as a result of Toyota’s recall?

Insurance companies confirm that Toyota’s recall will not affect your liability or collision insurance cover. If a faulty accelerator causes an accident you are involved in, your claim is valid and will be paid. The manufacturer will be the one insurance companies chase for compensation. You will have to pay your deductible and you will receive part or all of it back from Toyota.

As for your insurance premiums, insurance companies (including State Farm and Allstate) have stated that there will be no increase. When your insurance rate is calculated, the type and model of your car plays a big role.Toyota has a good reputation overall for making safe cars and the recent recall will not mean that all Toyota owners will automatically start paying more.

The value of used Toyota cars will undoubtedly go down. But trying to immediately sell it may not be a good idea. Lower car value may mean cheaper insurance when you have to renew your policy?

Want to know exactly by how much your insurance rates have changed? Compare FREE auto insurance quotes now and find out right away.

Leave a Reply