Who Is Paying For Toyota's Negligence?

After you've applied for an auto insurance policy and have begun to pay your bill, your auto insurance carrier has implicitly agreed that they will assume your financial responsibility. In other words, if you make any driving mistakes during the time you are covered they will pay for your mistakes.

For example, let's assume that you're taking a leisurely drive in the country one afternoon. You see a red light ahead and step on the brake. However, your accelerator sticks and your car won't stop. So you end up driving right past the red light and you hit another car.

The driver of the other car has to be taken to the hospital, your car is towed, and the automobile you hit is severely damaged.

If your car insurance policy has adequate liability limits then all of the damages you have caused will be paid for. And if you are sued the insurance company will also pay for an attorney to represent you.

But what if, although the accident seemed to be your fault, it was actually caused by a car manufacturer's defect?

As you are probably well aware, Toyota Motor Corporation has been forced to recall more than 8.5 million of their vehicles because of faulty gas pedals. The cars that they are recalling have had a history of sudden acceleration.

This mechanical deficiency has been the cause of a multitude of accidents and many injuries. In addition, the accidents that were caused by these cars' sudden acceleration have resulted in the death of thirty four human beings.

Consequently, Toyota is now open to lawsuits for perhaps the next thirty years.

One of the lawsuits is a Class Action suit that represents Toyota automobile owners. They claim that the cars they own have gone down in value because of the recall.

They believe that if they try to sell their Lexus or Toyota they will have to sell it for a lower price than they would be able to sell an auto with the same value that doesn't have any recall issue. When you realize that buying a new car is the 2nd biggest purchase US families make, this lawsuit seems to have some legitimacy.

In addition, product liability claims have been brought on behalf of the people who were injured or killed in car accidents that were caused by the Toyota accelerators.

You may not realize this, but if you own a Toyota and you are involved in an auto accident because the gas pedal sticks the state law that your car is registered in will determine that the accident is your fault. That's because your state law stipulates that you have to have control of your vehicle at all times.

Your car insurance carrier will then have to pay for your car's repairs as well as for the "not-at-fault" driver's injuries and repairs to their vehicle.

Between 2000 and 2010 Toyota dealers got more than 2,600 complaints relating to sudden acceleration. When you consider the amount of claims that were paid because of these recalled cars, the amount that traditional car insurance carriers have paid could amount to literally hundreds of millions of dollars.


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