The Pennsylvania Department of Insurance has announced that vehicle recalls occur “fairly regularly”, and that the insurance companies are accustomed to dealing with the recalls. However, Insurance Commissioner, Joel Ario, addressed that while the auto recalls might not affect the premiums that customers pay, the premiums might see an upward rise if the customer fails to service their vehicles or fails to respond to the recall notice. They also state that the insurer has the option of refusing a renewal corresponding to the pay-out of claims.

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“Each week, we learn more about safety problems with certain vehicles, raising many consumers’ concerns about how that might impact their own auto insurance,” said Ario. “Insurance companies cannot cancel coverage or deny a claim because you drive a recalled vehicle. However, consumers are encouraged to respond to recall notices by having your car serviced.”

One of the components for assessing the premiums for auto insurance is the vehicle model rating, which considers the track record, safety features and cost of repair for the vehicle. Once a recall happens, most insurance companies often “re-file” for the model rating, to assess any changes in premiums. However this has not happened in the case of the recalled Toyota vehicles. And it is expected that rates wont change, presuming that Toyota replaces the parts in all affected cars.