{"id":1620,"date":"2016-01-26T17:56:04","date_gmt":"2016-01-26T17:56:04","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=1620"},"modified":"2022-12-19T16:10:50","modified_gmt":"2022-12-19T16:10:50","slug":"does-an-auto-recall-raise-my-insurance-rate","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/does-an-auto-recall-raise-my-insurance-rate\/","title":{"rendered":"Car Recall Insurance: Will your Rate Increase?"},"content":{"rendered":"\n
In most cases, the answer is no. But there are many reasons why people should not ignore any product recall and, when it comes to your ride, a product recall may be a safety concern.<\/p>\n\n\n\n
Today\u2019s new automobiles are technological marvels that usually deliver a high degree of security and reliability on the road \u2013 until you\u2019re on the receiving end of the dreaded recall notice. And people want to know: How will their auto insurance<\/a> be affected?<\/p>\n\n\n\n Continue reading to learn more about how these recalls can affect you. And there are a lot of them. The latest information shows that the National Highway Traffic Safety Administration<\/a> cited more than 1,000 safety recalls in 2021, affecting almost 35 million automobiles and other equipment.<\/p>\n\n\n\n People need to read and take a recall notice seriously. Follow the instructions, which usually begin with raking your auto into the dealership for a fix. Luckily, this is free for drivers.<\/p>\n\n\n\n If you own a truck or auto that is more than eight years old, it cannot be recalled. However, if a problem is identified, it should be corrected \u2014 you\u2019ll just have to pay for it yourself.<\/p>\n\n\n\n Automakers, and other consumer goods manufacturers and distributorships, issue a product notice when people, typically through complaints, have identified an issue with some specific product. In many cases, it\u2019s a safety-related defect.<\/p>\n\n\n\n Most people are more familiar with food product recalls. Typically, you\u2019ll hear about a type of food that has been identified as containing some sort of bacteria that is dangerous, or even deadly to some, to consume. Since food is exposed to many potential contaminants from the time it is grown in the field through the preparation and packaging steps, almost any kind of food can become potentially corrupted. In these situations, consumers will be directed to bring their food product back to the point of purchase for a refund \u2013 or simply throw it away.<\/p>\n\n\n\n Besides food call-backs, you may remember seeing a notice on TV for certain goods. Many times these are products you would use in your home or for a baby, such as a car seat. These more expensive and more permanent items may generate a recall letter with instructions, like the one you receive for your automobile. In most cases, these items can be returned for a refund.<\/p>\n\n\n\n In other cases, similar to vehicle recalls, a professional needs to go in and either add a part or repair a part to make the product safe again. Although vehicle recalls are voluntary, federal law under the National Traffic and Motor Vehicle Safety Act allows the National Highway Traffic Safety Administration (NHTSA) to require manufacturers to recall vehicles that have safety-related defects or don\u2019t come up to the standards set by federal law. <\/p>\n\n\n\n If you toss that recall letter in the trash and don\u2019t have the problem corrected, and have an accident, it may affect your car recall insurance rates or even result in a claim denial if it\u2019s proven you neglected to correct known issues that contributed to an accident<\/a>. Your property damage and bodily injury liability will be negated in this circumstance.<\/p>\n\n\n\n After the problem is corrected, it\u2019s a good idea to provide your insurance company with paperwork documenting that the necessary vehicle repairs have been made. If you\u2019re involved in an accident because of a faulty part that has been recalled, your insurance company can settle the cost with the manufacturer.<\/p>\n\n\n\n Your car\u2019s value is something that\u2019s used to determine its insurance cost. If a recall is widespread and the issue can\u2019t be corrected, for example, it could have a negative impact on the market value. You should check with your insurance company \u2013 it\u2019s possible you may be able to decrease your insurance rates, since your car\u2019s value has been reduced.<\/p>\n\n\n\n The U.S. Department of Transportation\u2019s National Highway Traffic Safety Administration (NHTSA) offers a free online tool<\/a> that will enable owners to search recall information by Vehicle Identification Number (VIN).<\/p>\n\n\n\nWhat is a Product Recall?<\/h2>\n\n\n\n
How a Car Recall Can Raise Your Insurance<\/strong><\/h2>\n\n\n\n
National Highway Traffic Safety Administration \u2013 \u00adStay Informed<\/strong><\/h2>\n\n\n\n