Some car insurers refuse to insure certain Hyundai and Kia models

Some car insurers refuse to insure certain Hyundai and Kia models
Written by admin


Progressive and State Farm, two of America’s largest auto insurers, refuse to write policies for older Hyundai and Kia models that are considered too easy to steal in some cities, according to the companies.

Several reports say that companies have stopped offering insurance for these cars in cities Denver, Colorado and St. Louis, Missouri. The insurance companies did not tell CNN which cities or states are participating.

The Road Casualty Data Institute announced insurance claims date last September This has been confirmed by various social media accounts Hyundai and Kia models from 2015 to 2019 are nearly twice as likely to be stolen as other vehicles of a similar age. because many of them lacked some of the basic anti-theft technology included in most other cars of those years, According to HLDI.

Specifically, these SUVs and cars don’t have electronic immobilizers, which rely on a computer chip in the car and another in the key that communicates to confirm that the key really belongs to that car. Without the right key, the immobilizer is supposed to do just that – stop the car from moving.

Immobilizers were standard equipment on 96% of vehicles sold between 2015 and 2019, according to HLDI, but only 26% of Hyundais and Kias had them. when. Instead of relying on metal keys that must be inserted and turned, cars with push-button start systems have immobilizers, but not all models with keyless ignition.

It has become the theft of vehicles A social media trend in 2021, according to HLDI car thieves started posting videos of their thefts and their joy and even videos explaining how to steal cars. In Wisconsin, where the crime first broke out, theft claims of Hyundais and Kias rose more than 30 times in dollar terms from 2019 levels.

“Sowlet Farms has temporarily stopped writing new business on certain model years of Hyundai and Kia vehicles in some states because theft losses for those vehicles have increased dramatically,” the insurer told CNN in a statement. “This is a serious issue that affects our customers and the entire auto insurance industry.”

Progressive is also reducing insurance on these vehicles in some markets, spokesman Jeff Sibel said in an emailed statement.

“Over the past year, we’ve seen some Hyundai and Kia vehicles more than triple in theft, and in some markets, these vehicles are almost 20 times more likely to be stolen than other vehicles,” he wrote. “Given that we rate our policies based on the level of risk they represent, in many cases this explosive increase in theft incidents makes it extremely difficult for us to insure these vehicles. In response, we increased our rates in some geographic areas and limited the sale of new insurance policies on some of these models.”

Progressive said it continues to insure those who already have policies with the company. Progressive also advises them on how to protect their vehicles from theft.

Michael Barry, a spokesman for the Insurance Information Institute, said it’s very unusual for auto insurers to stop writing new policies on a particular make or model of car.

“They generally want to expand their market share depending on where they do business,” he said.

Hyundai and Kia operate as separate companies in the United States, but Hyundai Motor Group has a large stake in Kia, and various Hyundai and Kia models share much of their engineering work.

Engine immobilizers are now standard on all Kia vehicles, according to a statement from the automaker. Kia said it has begun notifying owners of the availability of this free software.

Hyundai said it is providing free steering wheel locks to some police departments across the country. easily stolen Hyundai models. Hyundai dealers also install free safety kits for cars, the company said.

About the author


Leave a Comment