Insurance companies dropping new Kia, Hyundai policies

Insurance companies dropping new Kia, Hyundai policies

At minimum two main insurance plan companies are not issuing new insurance policies in some areas for particular Hyundai and Kia cars. Here’s what drivers require to know.

If you own a auto from two producers, you might not be able to have it insured by some major businesses, a social media write-up promises. 

“Major auto insurance policy providers prepare to drop Hyundai and Kia from their strategies thanks to thefts!” the poster claimed in a viral tweet on Jan. 30.

Modern on line search facts also present that Hyundai and Kia drivers are wanting for facts about insurance insurance policies. 


THE Query

Have some car or truck insurance policies corporations stopped masking Hyundai and Kia models owing to thefts?


THE Sources


THE Solution

This is true.

Sure, some car or truck insurance policy providers have stopped masking Hyundai and Kia models thanks to thefts. The adjust applies to new policies, not those people for present prospects. 

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WHAT WE Uncovered

Progressive and State Farm are not issuing new procedures in some spots for sure Hyundai and Kia cars thanks to an uptick in thefts involving the automobiles. 

The two insurance coverage companies say they will keep on to insure current shoppers who have these varieties of autos. 

Scott Holeman, a spokesperson for the Insurance policies Details Institute (III), also verified the institute is only viewing the suspension of new client applications in some states, not the dropping of existing clients.

The coverage corporations did not give a listing of automobiles that they will not insure proper now. But a spokesperson for Kia said the impacted types consist of “2011 to 2021 Kia motor vehicles equipped with a steel ignition crucial for turn-to-start out operation.”

Hyundai did not present details about impacted versions, but a spokesperson mentioned in a assertion that the company “regrets this determination by insurers and its impact on decide on Hyundai car or truck owners and lessees.”

The automobile makers and coverage businesses did not verify which metropolitan areas or states are impacted by the adjust, either. But two Condition Farm workforce advised Confirm spouse station WWL-Television set that the company’s restrictions implement in Georgia, Louisiana, Oregon, Washington and Pennsylvania.

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Condition Farm has “temporarily stopped accepting new buyer programs in some states for particular design yrs and trim concentrations of Hyundai and Kia autos because theft losses for these vehicles have amplified substantially,” a spokesperson reported.

“We take seriously our duty to control threat and the impact of extra declare prices on all our consumers,” the spokesperson said. “In this circumstance, it turned necessary to get action to defend our policyholders and our business enterprise.”

In some geographic locations, Progressive has also minimal the sale of new coverage insurance policies on some Hyundai and Kia designs as a outcome of thefts, according to a spokesperson. 

“During the past 12 months we have noticed theft prices for specified Hyundai and Kia motor vehicles more than triple and in some marketplaces these autos are virtually 20 occasions additional probable to be stolen than other motor vehicles,” the spokesperson claimed. “Given that we rate our insurance policies primarily based on the level of hazard they symbolize, this explosive raise in thefts in several conditions helps make these automobiles incredibly difficult for us to insure.”

There is at minimum one particular other important insurance policy business that is not using the very same steps as Progressive and Condition Farm.

Nationwide informed Confirm it “has been checking recent Hyundai and Kia theft trends and responses by those people car producers,” but the organization carries on to deliver insurance coverage protection for them. 

Other main insurance coverage corporations, like Allstate, Liberty Mutual, Geico and USAA, did not respond to requests for remark about whether they will continue to insure Hyundai and Kia motor vehicles. 

Why Hyundai and Kia thefts are on the rise

Hyundai and Kia thefts “increased dramatically” throughout the region in 2022 thanks in element to “misuse of social media platforms” this sort of as YouTube, the Countrywide Insurance policy Crime Bureau (NICB) wrote in a January 2023 press launch.

The NICB and other insurance policies marketplace associations sent a joint letter to YouTube’s Main Executive Officer Susan Wojcicki asking the system to “remove ‘how to’ videos that supply comprehensive instructions for stealing” Hyundai and Kia cars, in accordance to the press release. 

But the increase in Hyundai and Kia thefts commenced just before 2022. 

Theft insurance coverage claims among the 2015-2019 product-12 months vehicles have been nearly 2 times as common for Hyundai and Kia cars than individuals from all other manufacturers, in accordance to an analysis of 2021 insurance claims from the Freeway Reduction Details Institute (HLDI). 

It is very likely that the cars are stolen more regularly than others since they do not have digital immobilizers. This is a gadget that “arms automatically when a automobile is switched off and stops unauthorized relocating or beginning,” Holeman claimed. 

The Metropolis of Seattle is also suing Kia and Hyundai in excess of allegations that failures to set up anti-theft know-how in some cars contributed to an exponential rise in thefts, Verify partner station KING 5 claimed in January 2023. 

From 2021 to 2022, thefts of Kia and Hyundai autos greater by 363{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} and 503{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7}, respectively, according to the metropolis. 

Hyundai explained in its assertion that engine immobilizers are conventional on all autos created as of November 2021 and “have extended been normal products on all Hyundai cars with drive-button ignitions.”

The manufacturer also explained it has “taken a series of steps to decrease the assert frequencies related with affected automobiles,” which includes an impending application update that will be obtainable to customers for free beginning March 2023.   

Hyundai is also giving cost-free steering wheel locks to some clients who push afflicted autos. Individuals locks are dispersed by find law enforcement businesses in the course of the place. 

People can also provide their Hyundai to a area seller for the invest in and installation of a protection package.

Kia stated all of its 2022 models and trims have engine immobilizers. The manufacturer is also continuing to develop other alternatives for automobiles that weren’t originally geared up with immobilizers, such as an increased stability computer software. 

Like Hyundai, Kia is also furnishing cost-free steering wheel locks to buyers by area legislation enforcement companies.

For those people who do not have a standard immobilizer in their automobile, the III also suggests asking the car supplier or maker if they can set up 1.

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