The National Highway Traffic Safety Administration (NHTSA) recalled 51 million cars and trucks in 2015.
The NHTSA and car manufacturers issue car recalls when it is determined that there is a safety-related defect with a specific model. A car recall can also be issued if the car model does not comply with safety standards set by federal authorities.
When vehicles are recalled, an alert is issued to car owners. The car owner is then required to return the car to the dealership in order for the issue to be repaired. The repair is done at no charge to the vehicle owner. In extreme and rare cases, the entire vehicle may be replaced.
How Vehicle Recalls Affect Insurance Premiums
One of the many thoughts that go through a car owner’s mind when they receive a notice of a car recall is how it will affect their insurance premiums. The following are some things to keep in mind when faced with a vehicle recall.
- Your insurance rates won’t be affected
Your insurance rates shouldn’t be affected by the recall. The insurance company is not responsible for the repairs, the manufacturer is. Your insurance company therefore will have no reason to raise your insurance rates especially if the safety issue is resolved. You will however need to provide proof of paperwork showing your insurance provider that the safety issue was repaired.
- Ignoring a recall may cause insurance rates to rise
When you get a recall notice from your manufacturer, be sure to have the vehicle fixed at the dealership as soon as possible, even if it is a minor problem. Neglecting to get the vehicle repaired may result in an accident. Insurance providers will increase your rates if you ignore the recall notice.
- Insurance rates are higher for cars with repeated recall history
If you’re shopping for a car, it’s a good idea to check the recall history of the model or manufacturer. If a certain vehicle’s make and model has been consistently recalled for safety issues, your Insurance provider could issue higher insurance rates as your vehicle has proven to be unreliable.
- Not all recalls are the same
Some recalls are for small issues, such as a misplaced sticker, and can be fixed quickly. Other recalls are for major issues and could put your safety at risk. It is therefore important to have your car checked as soon as possible.
What to do When You Get a Vehicle Recall Notice
According to a study by J.D. Power, one in six cars on U.S. roadways are unrepaired despite an outstanding vehicle recall. This puts drivers and other road users in danger. When you receive a recall notice, make sure you:
- Contact your dealership
Your car should be returned to the dealership for repair. Don’t take it to your local repair shop. The dealer will have the car repaired at no cost to you. Depending on the issue and the size of the recall, it may take a few minutes or a few months to have your vehicle repaired.
- Contact your insurance provider
Provide your insurance agent with documentation showing that your vehicle has been repaired. This will show that you complied with the recall notice and that your vehicle is safe to drive. Your insurance provider will not increase your rates.
Beyond making sure that your vehicle is safe, it’s important to have insurance that you can depend on. Finally, auto insurance comparisons will help you find an auto insurer that will cover your needs at an affordable price.