How often do safety recalls affect automobile owners?

How often do safety recalls affect automobile owners?

By Emily Miller

Even the best auto insurance policy in the world offers little financial protection for families in the event of a roadside tragedy. With that in mind, carrying proper life insurance coverage would help to ease these financial concerns by securing the financial stability of one’s family.

Throughout the past two decades, auto safety has been gaining a significant share of news attention due to various safety recalls. Fortunately, new legislation was passed in 2000 that required full disclosure from automakers regarding any recalls.

Auto regulators are now able to keep a closer eye on the automotive markets while consumers – with the power of the Internet – can keep themselves informed.

Manufactures such as Toyota and Ford have suffered from multiple recalls during the past couple of years, which has cost them both their reputation and stock value.

Toyota recalled 4.4 million vehicles in 2009 for acceleration issues and 2.3 million vehicles in 2010 for a similar, problematic issue. Also, in 2012, they recalled 2.5 million vehicles due to the assembly of the window switch, which could potentially melt and catch on fire.

Ford recalled 4.5 million vehicles both in 2005 and 2009 due to a faulty cruise control unit. By the end of both recalls, it was estimated that 16 million vehicles were affected.

As of Tuesday, November 26, 2013, Ford recalled the Escape small SUV again, this time for oil and fuels leaks that could potentially cause engine fires. This particularly Ford model has been recalled multiple times since it was redesigned in 2012.

“Auto safety advocates say the high number of recalls is out of the ordinary for a new model and a sign of quality problems,” said AP auto writer, Tom Krisher.

Even though the amount of automobiles recalled in a given year now routinely tops the number of new vehicles sold, vehicles are safer and of better quality than ever before, according to automotive news.

Because of new technology and recent legislation, standards for automakers and suppliers are increasingly getting higher every year. Consumers are becoming more concerned about safety features and crash-score ratings than ever before. Meaning the automobile marketplace is heading in the right direction.

“While recalls make for compelling headlines, in truth the defects affect a remarkably small percentage of car owners,” says Edmunds.com CEO Jeremy Anwyl, adding that distraction and error tend to cause the most car collisions.

Regardless of the situation, a proper life insurance policy can ensure the financial stability of one’s family, if a tragic roadside accident occurred. Also keep in the mind that life insurance premiums are at an industry all-time low.

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