A series of car recalls to hit the automotive industry this spring, including investigations of models created by Ford, Chrysler, Chevrolet and Toyota, is unlikely to impact auto manufacturer's insurance rates.
“Recall coverage is available, but it's not widely purchased by any major auto manufacturer,” says Bob Hartwig, president of the Insurance Information Institute (III). “The auto industry has a certain number of recalls every year and risk management procedures to deal with them, so as long as they don't involve an inordinate amount of vehicles or injuries this wouldn't materially influence insurance programs.”
The National Highway Traffic Safety Administration reports around 600 recalls annually, but many of those events never make the news because car makers try to reverse the issues before they become public relations disasters.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
