The automaker was allegedly slow to recall cars, causing the insurers to pay millions in claims
Allstate and its subsidiaries have filed a lawsuit against Hyundai and Kia, seeking to recover costs paid for damages when cars burst into flames.
The suit, filed in a California court, alleges that Hyundai and Kia knowingly failed to recall millions of defective vehicles, endangering lives since 2006.
The complaint points to a defect in the braking system, which could cause fires even when vehicles were parked. Despite the carmakers issuing 17 recalls, the insurers claim the fixes were inadequate, and their insured clients suffered property damage, including repair and replacement costs.
In November 2020, Hyundai and Kia agree to a consent order with NHTSA topay a record $210 million civil penaltyfor failing to recall more than 1.5 million vehicles in a timely manner.
Moisture in the braking system
The first complaint from a consumer to the National Highway Traffic Safety Administration (NHTSA) was filed in 2011 following a fire of a Hyundai parked in the driveway of a home.
A forensic engineer concluded the cause of the fire was moisture in the braking system installed in the engine compartment that causes a short circuit even if the vehicle is off, according to the suit. The suit includes pages of consumer complaints filed withNHTSA related to vehicle fires that often occurred when parked.
The suit claims Hyundai and Kia have issued 17 recalls to date but some of the fixes were not adequate.
The unfair and deceptive trade practices committed by defendants caused plaintiffs damages, the insurers alleged.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-14 17:39:24
