More recalls are in order for Toyota. Just when we thought we heard the last of this issue, another (unrelated to two other recalls) recall issue has cropped up for Toyota.

WASHINGTON, D.C. — On Friday, the Toyota Motor Corp. announced it was recalling 600,000 Sienna minivans that were sold in the US. The problem is possible rusting spare tire cables. These could break and allow the spare tire to fall into the street. This would create a problem for other road users. This is the latest in a series of hazards to affect the automaker that has already been beleaguered by other car safety problems.

The first high profile accident case prompting a closer investigation into Toyota vehicles happened in San Diego, California. This most recent recall appears to be the third in a major Toyota recall. The two previous recalls included misfitting car mats and faulty accelerators.

House investigators said another congressional hearing would be held in the month of May in which they would look at the electronic problems that have caused runaway Toyotas.
To date, Toyota has recalled over 8 million vehicles due to faulty accelerator pedals. The original problems were a surprise to American auto-buyers, as Toyota had had one of the best reputations in the industry up until then.

We posted on this topic earlier. This safety study is even involving NASA and the National Academy of Science. Both are being brought in to provide another scientific perspective and investigative body to look at the Toyota recall situation. You can read more here.

Toyota leaders says the most recent recall applies to the 1998-2010 model year Sienna minivans with two-wheel-drive that have been sold or registered in 20 cold-climate states, including Washington D.C. and surrounding areas.

The problem, according to Toyota is that road salt rust could make the carrier cable that holds the spare tire, break apart, and that would allow the spare tire in Sienna minivans to fall into the street, endangering the lives of others.

To date there have been no accidents or injuries, although The National Highway Traffic Safety Administration reports that it has received six complaints of spare tires falling off Sienna minivans. Toyota says it is taking measure to address the problem. Customers should note they will get a notice to take their minivan to a dealership for inspection.

If you should have any Georgia personal injury law questions, you can ask us, we are Georgia car accident lawyers who are experts in helping you resolve your legal accident issues.

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Insure.com recently commissioned a study to look at insurance rates and compare them state to state. Georgia ranked 8th on the list with Louisiana ranked number 1 and Maine 50th with the cheapest insurance rates. Let’s take a closer look at how this study was put together and what factors affect the rates in different states. Being a Georgia personal injury law expert I cannot speak for all states, but I’d like to share some perspective about this report.

The results came from a study that collected average auto insurance rates for more than 2,400 vehicles, based on 10 ZIP codes per state and rates from six large carriers, with averages calculated nationally and for each state. This allows you to compare auto insurance prices among the states.

Although not a comprehensive inclusion of all nationwide statistics it does represent a good cross section representation if the zip codes chosen reflected a cross section of the states urban and rural populations. Georgia insurance rates are established on a zip code basis too. Maine having the cheapest rates also has one of the most sparsely populated states on the list with 1.3 million people. Makes sense. Fewer people and fewer cars, make for fewer accidents.

As a large rural state with just 1.3 million residents, Maine has several factors that tend to keep rates down, says Chris Condon, incoming president of the Maine Insurance Agents Association. The largest city, Portland, has just 62,000 residents. The upshot: The average number of annual miles driven is low, commuter mileage is low, and, relative to other states, the Pine Tree State’s highways are not that busy. This helps hold down car crash claims.

Mr. Condon goes on to state:

..Maine’s insurance advantage goes beyond just numbers. “It’s a real proud culture,” he explains. In most disputes, Mainers tend to seek fair treatment rather than big money.
“People are less likely to sue than they might be elsewhere,” Condon says, “I think that impacts those rates over time.”

Let’s keep in mind that insurance companies are not altruistic, non profit corporations. They seek a profit from managing the insurance claims industry. Claiming insurance rates are cheaper due to litigation settlements is only one factor in determining insurance rates, not the only factor. Georgia car accident lawyers can help people by informing them of their rights in accident claims. Insurance companies seek ways to minimize claims to manage and increase profit margins for shareholders.

How does insurance work?

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate (indemnify) the insured in the case of a large, possibly devastating loss. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be compensated.

If you or someone you know is involved in a car accident please contact our office to answer your questions. Assuming an insurance company will impartially help you with your claim may not be the best course of action.

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