Some auto insurers are refusing to cover some Hyundai and Kia models


Progressive and State Farm, two of America’s largest auto insurers, are refusing to jot down insurance policies in sure cities for some older Hyundai and Kia fashions which have been deemed too straightforward to steal, in accordance with the businesses.

A number of stories say the businesses have stopped providing insurance coverage on these autos in cities that embody Denver, Colorado and St. Louis, Missouri. The insurance coverage firms didn’t inform CNN which cities or states have been concerned.

The Freeway Loss Knowledge Institute launched insurance coverage claims knowledge final September that confirmed what varied social media accounts had been saying: Some 2015 by 2019 Hyundai and Kia fashions are roughly twice as more likely to be stolen as different autos of comparable age, as a result of lots of them lack a number of the fundamental auto theft prevention know-how included in most different autos in these years, in accordance with the HLDI.

Particularly, these SUVs and vehicles don’t have digital immobilizers, which depend on a pc chip within the automobile and one other in the important thing that talk to verify that the important thing actually belongs to that car. With out the appropriate key, an immobilizer ought to just do that – cease the automobile from transferring.

Immobilizers have been commonplace tools on 96% of autos offered for the 2015-2019 mannequin years, in accordance the HLDI, however solely 26% of Hyundais and Kias had them at the moment. Automobiles which have push-button begin techniques, slightly than counting on metallic keys that should be inserted and turned, have immobilizers, however not all fashions with turn-key ignitions do.

Stealing these autos turned a social media development in 2021, in accordance with HLDI, as automobile thieves started posting movies of their thefts and joyrides and even movies explaining tips on how to steal the vehicles. In Wisconsin, the place the crimes first turned prevalent, theft claims of Hyundais and Kias spiked to greater than 30 occasions 2019 ranges in greenback phrases.

“State Farm has quickly stopped writing new enterprise in some states for sure mannequin years and trim ranges of Hyundai and Kia autos as a result of theft losses for these autos have elevated dramatically,” the insurer mentioned in a press release offered to CNN. “It is a major problem impacting our clients and your complete auto insurance coverage business.”

Progressive can be reducing again on insuring these vehicles in some markets, spokesman Jeff Sibel mentioned in an emailed assertion.

“In the course of the previous 12 months we’ve seen theft charges for sure Hyundai and Kia autos greater than triple and in some markets these autos are virtually 20 occasions extra more likely to be stolen than different autos,” he wrote. “Provided that we worth our insurance policies based mostly on the extent of danger they signify, this explosive improve in thefts in lots of circumstances makes these autos extraordinarily difficult for us to insure. In response, in some geographic areas we’ve got elevated our charges and restricted our sale of latest insurance coverage insurance policies on a few of these fashions.”

Progressive continues to insure those that have already got insurance policies with the corporate, he mentioned. Progressive can be offering them with recommendation on tips on how to defend their autos from theft.

Michael Barry, a spokesman for the Insurance coverage Info Institute, mentioned it was very uncommon for auto insurers to easily cease writing new insurance policies on a given make or mannequin of car.

“They typically wish to develop their market share relying on the place they’re doing enterprise,” he mentioned.

Hyundai and Kia function as separate firms in the US, however Hyundai Motor Group owns a big stake in Kia and varied Hyundai and Kia fashions share a lot of their engineering.

Engine immobilizers at the moment are commonplace on all Kia autos, in accordance with a press release by the automaker, and the corporate says it has been growing and testing safety software program for autos not initially outfitted with an immobilizer. Kia mentioned it has begun notifying house owners of the supply of this software program, which is being offered at no cost.

Hyundai mentioned it’s offering free steering wheel locks to some police departments across the nation to offer native residents who’ve simply stolen Hyundai fashions. Hyundai sellers are additionally putting in free safety kits for the autos, the corporate mentioned.