agent Entrepreneur logo
MenuMENU
SearchSEARCH

Allstate Sues Toyota in Gas Pedal Cases

October 5, 2010
3 min to read


Allstate Insurance Co. has sued Toyota Motor Corp., alleging that some of the insurer’s customers were involved in collisions resulting from faulty gas pedals and other defects in Toyota vehicles, reported The Detroit News.


Allstate said Monday it was seeking more than $3 million in a suit that underscores Toyota’s challenge to move beyond quality and safety problems that emerged last year and led to the recall of millions of vehicles.

Ad Loading...


Toyota rejected the allegations. “While we have not seen the complaint, based on reports we believe the unfounded allegations in this suit have no basis,” Toyota Motor Sales USA. said in a statement.


Earlier Monday, the automaker briefed reporters on its progress establishing tighter quality controls and fixing about 3.7 million recalled vehicles. Bloomberg News reported the lawsuit later in the day.


“Allstate believes some of our customers were involved in collisions as a result of faulty accelerator pedals and other vehicle defects on Toyota vehicles and that Toyota should be held accountable for the financial impact of these accidents,” said Christina Loznicka, a spokeswoman for the Northbrook, Ill., insurer.


“Allstate, like other insurers, has filed a subrogation lawsuit against Toyota in the state of California,” she said. In subrogation suits, insurers try to recoup claims from manufacturers on the grounds that the products are defective.


The suit cited data from Safety Research & Strategies Inc. of Rehoboth, Mass., a safety advocacy firm that works with plaintiffs’ lawyers.

Ad Loading...


Safety Research President Sean Kane had not read the suit. But he said such suits by insurers against carmakers were unusual, suggesting a possible breakdown in negotiations.In its complaint in California state court, Allstate alleged that sudden acceleration accounted for at least 725 accidents with 304 injuries and 18 fatalities, citing Safety Research and Strategies data.


Toyota has recalled more than 9 million vehicles worldwide since last fall, most of them in the United States, mostly to address problems that could lead to unintended acceleration.


The company said Monday that its U.S. dealers have provided fixes to around 3.7 million vehicles, which were recalled to repair pedals that could stick, update braking software and prevent a risk of pedal entrapment that could cause cars to accelerate.


The automaker plans to expand the scope of rapid-response “Smart” teams formed to investigate complaints of unintended acceleration of Toyota vehicles to look into other problems as they come up. Since April, complaints of unintended acceleration of Toyota vehicles have dropped sharply to fewer than 150 calls a week to a customer hotline from around 800, Toyota said.


In all its repairs and investigations to date, Toyota executives reiterated that the company found no instances of unintended acceleration resulting from problems with the electronic throttle control system.

Ad Loading...


“Our goal is to set new, even higher standards for quality assurance and customer responsiveness in both the factory and the market,” said Steve St. Angelo, Toyota’s chief quality officer for North America.


The Smart teams are drawn from more than 200 engineers and field technicians.

More Industry

Photo of two men in suit jackets shaking hands next to new car inside of a dealership
IndustryApril 23, 2026

A New Consumer Culture in the Auto Dealership

Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.

Read More →
Closeup of the side of an Audi car
Industryby Hannah MitchellApril 23, 2026

New-Vehicle Sales Down

A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.

Read More →
Photo of Cadillac Lyriq SUV on road with partly cloudy sky in background
Industryby Hannah MitchellApril 16, 2026

Used Autos Selling for More

A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.

Read More →
Ad Loading...
Photo of facade of Waldorf Toyota car dealership
Industryby Hannah MitchellApril 16, 2026

Maryland Auto Group Sells

A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.

Read More →
Line graphic showing Cox Automotive's March Credit Availability Index status
Industryby Hannah MitchellApril 13, 2026

Auto Lending Opens Up in March

Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.

Read More →
electric vehicle next to an urban charging station. EV Demand Diverges. F&I and Showroom logo
Industryby Lauren LawrenceApril 10, 2026

EV Interest Varies Regionally

U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.

Read More →
Ad Loading...
Photo of the rear of a Mercedes GLC 400 electric SUV with a skyline in the background
Industryby Hannah MitchellApril 10, 2026

Brands Weighed on Projected Recalls

Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo of several cars on lifts in a service center
Industryby Hannah MitchellApril 9, 2026

Franchised Dealers Stand to Gain Service Business

Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.

Read More →
Ad Loading...
Photo of office desk with open laptop on it and an empty chair next to it
IndustryApril 9, 2026

What Matters Most in Building Your Agency

The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.

Read More →