Shop Insurance Canada Says Leaseholders Affected by the Takata Scandal Need to Understand Recall Policies
May 14, 2016 (PRLEAP.COM) Business NewsMay 14, 2016 – The scandal surrounding airbag manufacturer Takata has had wide reaching consequences, including loss of life and recalls for millions of vehicles from numerous brands with faulty airbags. In Canada manufacturers have promised consumers who vehicles replacement cars while the affected vehicle is fixed, but there could be an issue of fairness being raised, and a particular auto insurance question that is not being answered.
Honda (Acura) is one of the car manufacturers got affected by the Takata airbag recall. They claimed to ensure a seamless experience to their affected customers. But for their lease customers, the company is offering less than favorable conditions for a recall, while Shop insurance Canada says customers are unclear over their auto insurance situation.
When Honda (Acura) recalls a leasehold vehicle, the company has detailed some criteria for the customer to abide by:
Storing and not using the vehicle until it is called back and fixed is wise and essential, but some of the other stipulations could cause consumers problems. For example, Honda (Acura) is not guaranteeing leaseholders the same class of vehicle, which means the replacement rental could well be a worse car, says Shop Insurance Canada.
"That could possibly be acceptable to some customers, but the fact they must continue to make lease payments on the better vehicle will likely prove to be a frustration. In other words, leaseholders could be driving a lesser vehicle for months but still paying for the lease of the original, possibly better, car."
Months is the average timeframe for Honda (Acura) to fix a vehicle affected by Takata's faulty airbags, with the company saying a period of 5-6 months should be allowed for collection and repairs. One customer affected by Honda's policy insists that he should not pay the full terms of his lease when he may not have the same model.
"It's not fair for me to keep making full lease payments on my leased vehicle, while it is being stored … I pay for the brand, and to drive the car, not storing it and wait for it to be fixed."
Auto insurance is also a stumbling block because Honda (Acura) is saying leaseholders should continue to pay full coverage for a vehicle they are not using, could be stored, or may even be with Honda being fixed.
"It doesn't make sense that I still have to pay for liability coverage for my (Acura) ILX, since the vehicle will be stored in my garage and won't be moved. These things add up, because we are talking about 5 - 6 months here."
Car owners and leaseholders now have a big question. If the vehicle is defective or recalled, does regular auto insurance still cover their vehicles and the drivers properly, before they receive their loaner vehicles from local dealers? Customers must also ask who exactly they need to claim (manufacturer or insurance provider) from in the event of an accident.
About Shop Insurance Canada
Shop Insurance Canada is a Toronto based company that specializes in delivering the best auto insurance products to customers around Ontario and Canada. The online car insurance quoting tool uses an engine that is easy to use and accurate enough to deliver the best auto insurance quotes from over 25 of Canada's leading providers. Shop Insurance Canada also offers expert advice on the auto insurance industry, as well as guides and news to help customers find the best deal possible.