Wednesday, March 3, 2010

Toyota recall - Will your auto insurance rate go up

Have you been affected by the recent Toyota recall. After ensuring your vehicle is safe to be on the road, you are probably asking yourself what will this recall do to your car insurance? Will there be an increase to your insurance rates? Is your cover still valid? Does your vehicle cost less as a result of the recall?

Insurance companies say that your liability or collision insurance will not be affected. Faulty accelerator can cause accidents and if you are in one, your claim will be accepted and paid. Toyota will be the one insurance companies chase for compensation. You may have to pay he deductible, but experts say Toyota will return part or all of the deductible to you.

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 huge 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. Of course, this doesn't mean that you should sell yours immediately. Lower car value may mean cheaper insurance when you have to renew your policy.

Wondering how much exactly has your insurance rate actually changed?
Compare auto insurance quotes in Florida now and see for your self.

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