It seems like the National Highway Traffic Safety Administration aren’t the only one after Toyota to pay fines. According to a report by USA Today, State Farm Insurance is after the Japanese automaker to repay them for any crashes related to unintended acceleration by its cars.
And it won’t stop there because other insurance companies are expected to follow the move by State Farm for repayment of claims – a move called “subrogation” in the insurance business. All that could end up costing Toyota from $20 million to $30 million, says Mark Bunim, an attorney with Case Closure.
Customers could also see a bonus from the repayments and their insurance deductibles could be refunded.
Toyota has recalled more than 8 million vehicles worldwide due to two recalls related to unintended acceleration.
– By: Stephen Calogera