Toyota asked by State Farm to repay acceleration claims

State Farm insurance has asked car giant Toyota to repay for any car crashes related to the unintended acceleration by the Toyota vehicles. State Farms came up front armed with the reports of accidents for which the insurance company had already paid claims.

What more is that other auto insurance companies are expected to follow State Farm insurance and demand for the repayment of the claims they have paid already. This situation is called called abrogation in the insurance industry. If it ever happens then it could cost Toyota a large sum from $20 million to $30 million. The consumers could also see some bonus from the repayment and the insurance deductibles paid would be refunded.

Till now, Toyota has over 7.7 million vehicles recalls and two recalls related to sudden acceleration. Toyota has been fined maximum 16.4$ million by the government for violating 5 days deadline to report the pedals which they have not decided whether to appeal.

If the car giant falls to pay up for the accidents, the cost could not trigger down to the consumers who could only end up paying high auto insurance rates for Toyota vehicles.