Posts Tagged ‘nhtsa’
Car defect caused my accident. Who's at fault?
Manufacturers’ recalls are concerning me greatly because I drive a Toyota. I’ve been driving for years, luckily without any accidents. But what if I get into an accident because of a manufacturer’s defect? It’s not my fault, right? if their defect caused my accident would my insurance rate skyrocket?
If you have an accident as a result of a manufacturers’ defect, such as an accelerating or stuck gas pedal, it would be considered your fault and your insurance rate would more than likely increase for six long years. In some cases that accident might even be the tipping point to your insurance company cancelling you.
Ironically, insurance companies are usually the first ones to spot the trends of manufacturer’s defects.
In 2004, State Farm noticed a worrying trend in Toyota vehicles beginning to cause numerous accidents which they termed as “unwanted acceleration”. In 2007, State Farm informed the National Highway Traffic Safety Administration (NHTSA) of this.
It is not uncommon for insurance companies to provide their accident statistics to manufacturers in the hope that this information is translated to the general public about possible defects.
However, it wasn’t until 2009 that Toyota began informing owners of certain Toyota and Lexus models regarding the potential for an unsecured or incompatible driver’s floor mat, which may interfere with the accelerator pedal and cause it to get stuck in the “wide-open” position.
Insurance companies aware of manufacturer’s defects may elect to subrogate against the manufacturer to pay for the accident, meaning you would then not be at-fault for the accident and not suffer the expense of any rate hikes.
The models involved in the incidents that State Farm had brought to the attention of the NHTSA were “consistent with the voluntary recall” undertaken by Toyota.
Other insurers said they had not seen such a trend. However, State Farm is North America’s largest auto insurer with 42.4 million auto insurance policies. Few insurers beyond State Farm have a big enough auto insurance base to determine these kinds of trends.
Many insurers are apparently going back over accidents involving Toyota models to determine whether they may have been caused by a vehicle defect instead of the driver.
Drivers who have experienced this same type of accident in the early years may take issue with their ‘at-fault’ designation, in an attempt to get the increased premiums they were charged back.
However, this would be a very long road to take, as it would mean that the insurance company would have to subrogate against the auto manufacturer for past accidents first. In other words, you are “at-fault” if they don’t subrogate, and “not at-fault” if they do.
Toyota was hit by an embarrassing recall of more than eight million vehicles worldwide.
More than 80 class-action lawsuits have been filed that may cost Toyota a whopping $3 billion or more. these lawsuits usually benefit three specific groups financially: attorneys, on both sides, the court, and lastly (and the least), people who actually suffered from the accident.
Drivers facing a cancellation by their insurance company may not have time to do anything but go online and compare insurance rates between companies.
For these people, I recommend they keep comparing rates every year. Accidents get older and eventually drop off. More than likely it’ll be a different insurance company each year that will be providing the lowest rate. There’s no penalty for switching insurance companies year after year for the best rate.
Insurance data had also been critical in tracking problems with tires made by Firestone, relating to rollover incidents involving Ford and its Explorer models a decade ago. as a result, this helped crack the problem with Firestone tires.
Not all accidents are caused by manufacturer’s defects. take potholes, for example.
Say you were driving along a road and hit a pothole, which damaged your car, and you could prove that the city was aware of this pothole and did nothing to repair it in a reasonable time frame.
Your insurance company could subrogate against the city for the losses and you would not be considered at fault. I’m sure Toronto’s David Miller and other city mayors will be thrilled I’m telling you this.
John Bordignon, a media relations spokesperson for State Farm, stressed to me that not all insurance companies are “big, bad and evil”. There is reasonableness to accidents that they look at.
He said that State Farm would not necessarily hold a driver at-fault who was driving safely, slowly and had an accident as a result of ‘black ice’ whereas another insurance company may.
Ultimately, fault comes down to proof. Was the cause of the accident due to “unwanted acceleration” or was the driver “texting” instead of braking?
Lee Romanov is an insurance consumer advocate and creator of http://www.romanovreport.com.
Daily Q&A: What impact do recalls have on automobile insurance?
By Ivan Penn, Times Staff Writer Posted: Mar 15, 2010 10:16 AM
What is the impact of automobile recalls on my insurance coverage?
Sean Shaw, Florida’s insurance consumer advocate, says there are several issues drivers should consider when their automobile is recalled..
The impact sometimes can be positive. and with the major Toyota recalls, the issue can be critical.
“Consumers should remain alert for an announcement of any recalls affecting their model,” Shaw said in his recent report on the issue. “There are many Internet sites where consumers can check if a recall has been issued for their vehicle.”
Here are some issues Shaw suggests drivers consider if there is a recall on their cars:
• If a recalled part is determined to be the cause of damages or injuries, the insurance company will pay the claim without regard to the recalled part. Auto policy providers have indicated that accidents caused by a recalled part will be included in the vehicle’s liability or collision coverage.
• Insurance companies often seek reimbursement from the manufacturer for a claim that is the result of a manufacturing defect. Should the manufacturer pay the insurance provider, the consumer may get a fraction, if not all, of the deductible returned.
• many auto insurance companies are currently in the process of sending notices to their clients confirming that they will receive the necessary coverage protection.
Shaw recommends visiting the National Highway Traffic Safety Administration in the U.S. Department of Transportation Web site at http://www-odi.nhtsa.dot.gov/recalls/recallsearch.cfm. there, consumers can enter their vehicle make, model, and identification number and receive up-to-date recall information.
[Last modified: Mar 15, 2010 10:16 AM]
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Daily Q&A: what impact do recalls have on automobile insurance?
Business Highlights
Tuesday, March 9, 2010 at 3:13 p.m.
Feds to probe cause of runaway Prius in California
EL CAJON, Calif. (AP) – A Toyota Prius that sped out of control on a California freeway was towed to a dealership Tuesday while federal and company inspectors converged on the car to determine whether a stuck gas pedal was to blame.
The National Highway Traffic Safety Administration sent two investigators to examine the car after Monday’s incident, said Olivia Alair, a spokeswoman for the Department of Transportation, which oversees NHTSA. Toyota Motor Corp. spokesman Brian Lyons said the automaker is sending three of its own technicians to investigate.
James Sikes, 61, of Jacumba, told authorities that the accelerator malfunctioned Monday as he drove his Prius on Interstate 8 in San Diego County. The car reached 94 mph during the 20 minutes before a California Highway Patrol officer helped get the Prius driver to slow down and turn off the engine.
Job openings up sharply in January to 2.7M
WASHINGTON (AP) – Job openings rose sharply earlier this year, evidence that employers are slowly ramping up hiring as the economy improves.
The number of openings in January rose about 7.6 percent, to 2.7 million, compared with December, the Labor Department said. That’s the highest total since February 2009.
The report is a sign that the economy is soon likely to generate consistent job gains. some economists expect employers to add up to a net 300,000 jobs in March, though as many as a third of them could be temporary hiring for the 2010 Census.
Stock investors ask: What’s the next big thing?
NEW YORK (AP) – A year after the stock market began its comeback from 12-year lows, investors are looking for the next big thing.
Stocks have lost some of the momentum that propelled the Dow Jones industrial average up 61.4 percent from its close of 6,547 on March 9, 2009. That’s natural – bull markets tend to slow down as they head into their second year. but the lethargic pace of the economic recovery has also been a bit of a drag on stocks. and so investors are waiting for signs that the economy is ready to put up some solid, sustainable growth numbers.
The Dow on Tuesday rose 11.86, or 0.1 percent, to 10,564.38. The Dow remains 25 percent below its peak of 14,164.53, reached in October 2007.
Class-action lawsuits could cost Toyota $3B-plus
MIAMI (AP) – Toyota owners claiming that massive safety recalls are causing the value of their vehicles to plummet have filed at least 89 class-action lawsuits that could cost the Japanese auto giant $3 billion or more, according to an associated Press review of cases, legal precedent and interviews with experts.
Those estimates do not include potential payouts for wrongful death and injury lawsuits, which could reach in the tens of millions each. still, the sheer volume of cases involving U.S. Toyota owners claiming lost value – 6 million or more – could prove far more costly, adding up to losses in the billions for the automaker.
Chevron to shed 2,000 jobs, sell some assets
Chevron Corp. said Tuesday it will cut 2,000 jobs this year and sell some overseas operations as it revamps its struggling refinery, marketing and transportation operations.
The job cuts represent almost 12 percent of its 17,000 workers in the so-called downstream part of its business and just over 3 percent of its overall work force.
Executives of the second-largest U.S. oil producer are still deciding where and when they will eliminate the jobs as they try to complete the restructuring by the third quarter, company spokesman Lloyd Avram said. Additional cuts are expected next year.
Chevron said it will also seek bids for the Pembroke refinery in southwest Wales, and fuels marketing, aviation and lubricants businesses in the Caribbean and some markets in Central America.
Kroger 4Q profit falls 27 percent; margins shrink
CINCINNATI (AP) – The Kroger co. is sacrificing some profits to court financially strapped shoppers who are buying more groceries at lower prices, counting on them to keep coming back when better economic days finally arrive.
The nation’s largest traditional grocery chain Tuesday reported earnings fell 27 percent in its fourth quarter, while sales rose 7 percent with help from gasoline sales that were boosted by discount incentives for regular customers.
Kroger reported fourth-quarter profit of $255.4 million, or 39 cents per share, down from $349.2 million or 53 cents, a year ago. Sales were $18.6 billion. Analysts surveyed by Thomson Reuters expected 34 cents per share on $17.73 billion of revenue.
EU urges US to join in action against speculators
BRUSSELS (AP) – European officials urged the U.S. to join in a crackdown on speculators who bet against Europe’s currency union, warning they might ban some credit default swaps – opaque financial instruments blamed for worsening the world financial crisis.
German Chancellor Angela Merkel said Tuesday that “quick action is needed,” calling on the U.S. to “make a gesture” and curb the trades. Greek Prime Minister George Papandreou, in Washington, DC to meet with President Barack Obama, is also calling for curbs on speculation which he blames for making his country’s debt crisis worse.
The European Commission threatened to ban “purely speculative naked sales on credit default swaps of sovereign debt” and said it would ask for a similar move globally at the Group of 20 summit of leading and emerging economies in June.
Oil settles lower, ending brief rally
NEW YORK (AP) – Oil prices trimmed some early losses, but still ended lower Tuesday, after rising steadily since the end of last week.
Benchmark crude for April delivery lost 38 cents to settle at $81.49 per barrel on the New York Mercantile Exchange. Earlier, oil dropped as low as $80.16.
Tradition Energy analyst Addison Armstrong said the dollar strengthened against the euro ahead of talks between President Barack Obama and the Prime Minister of Greece, which has been reeling from financial turmoil.
Jobless aid measure clears Senate hurdle
WASHINGTON (AP) – Legislation to give additional months of unemployment benefits to people who have been out of a job for more than half a year cleared a key hurdle Tuesday that guarantees it will soon pass the Senate.
The sweeping bill also would prevent doctors from absorbing a crippling cut in Medicare payments and extends health insurance subsidies for the unemployed through December. It would add $132 billion to the budget deficit over the next year and a half.
Eight Republicans voted with Democrats to defeat a GOP filibuster of the measure, setting up a final vote on Wednesday.
Abbott paying $450 million for Facet Biotech
NEW YORK (AP) – Abbott Laboratories says it will buy Facet Biotech for about $450 million in cash, expanding the company’s access to biotechnology drugs, including a potential treatment for multiple sclerosis.
Facet and its partner Biogen Idec plan to move the potential multiple sclerosis drug daclizumab into late-stage development in the second quarter. The company also has potential cancer treatments in various stages of development with other partners.
Abbott will pay $27 per share, marking a 67 percent premium to Facet’s closing price of $16.21 Tuesday. both boards of directors have already approved the deal, which is expected to close in the second quarter.
by The associated Press
The Dow rose 11.86, or 0.1 percent, to 10,564.38.
The S&P 500 index rose 1.95, or 0.2 percent, to 1,140.45. The Nasdaq composite index rose 8.47, or 0.4 percent, to 2,340.68.
Benchmark crude for April delivery lost 38 cents to settle at $81.49 per barrel on the New York Mercantile Exchange.
in other Nymex trading, heating oil fell 1.57 cents to settle at $2.0898 a gallon, and gasoline dropped 2.89 cents to settle at $2.2603 a gallon. Natural gas lost 1.1 cents to settle at $4.516 per 1,000 cubic feet.
in London, Brent crude was down 56 cents to settle at $79.91 on the ICE futures exchange.
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