The Link Between Safety Recalls and Insurance Rates

According to the National Highway Traffic Safety Administration, automakers filed upwards of 650 safety recalls, involving over 17.8 million vehicles last year.  Was your vehicle among the millions recalled last year?  Did you have the recommended repairs performed to replace or repair the defective parts?  While that may have fixed the defect, the fact that your vehicle was recalled could still impact your auto insurance rates – either positively or negatively.

If your vehicle was recalled due to a defective part and you had the part replaced or repaired as prescribed in the recall notice, your insurance rate should not be affected.  To make sure it isn’t, you should provide your insurance company with documentation that the repair was in fact made in accordance with the manufacturer’s instructions.

If the safety recall involves an issue can’t be attributed to a specific part, and therefore can’t be corrected, your rate may increase.  Contrarily, the unresolved safety issue may decrease the value of your vehicle; in which case your rate may decrease.

If you receive a recall notice, be sure to have the defective part repaired or replaced as prescribed in the notice.  Failing to do so can result in an increase in your insurance rates if the defective part causes you to be involved in an accident in the future.

When shopping for a new vehicle, it’s a good idea to check the recall history of models you’re interested in, and steer clear of those that have had numerous recalls in the past.  This also applies to pre-owned vehicles.  If you find that the used vehicle you’re considering purchasing was involved in a recall, ask the seller to provide you with proof that the prescribed repairs were properly performed, and be sure to register online with the manufacturer to ensure you’re alerted of any future recalls affecting your car.

Receiving a recall notice in the mail is no cause for panic, and there’s a good chance that the recall won’t adversely impact your insurance rates, provided you have the required repairs made as instructed, and in a timely manner.

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