NU Online News Service, April 12, 3:42 p.m. EST

Spokesmen for Allstate and State Farm said today their companies had begun the subrogation process. Neither company would go into much detail.

Mike Siemienas, speaking for Allstate, said it has notified Toyota that "we have claims that we believe are the result of a product defect," adding that the company has started the subrogation process.

"Allstate continues to investigate claims involving recalled vehicles," he noted, but declined to say how many of its 17.7 million auto policyholders owned Toyotas and how many might possibly have claims that could be subrogated. The firm is the second largest U.S. auto insurer.

Phil Supple of State Farm, whose company acknowledged it was reviewing Toyota claims on Feb. 9, said he could not go into detail on current subrogation activity with the auto manufacturer. "We don't share that stuff. You sit down and negotiate," he said.

"On any given day we sit down with manufacturers. Subrogation is common," he added.

In February, Mark Bunin, president and chief executive of Case Closure--a New York-based insurance arbitration and mediation firm--said large auto insurers would be amalgamating their serious claims involving Toyotas over the past five or six months, to see "how many of them are tied to or could be tied to the gas pedal recall."

A spokesperson for Toyota said by e-mail that the auto giant, which has 17 percent of the U.S. market does not have "information to provide" concerning subrogation action by insurers.

At Progressive auto insurance spokesperson Leah Knapp sent a message regarding Toyota issues that the firm is "continuing to review claims and subrogating as appropriate. We don't have any numbers to share."

Special Reports /

Allstate, State Farm Moving Toyota Subrogation Actions

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