Insurance companies stop covering some Kia, Hyundai cars due to theft

At least two major auto insurance companies have declined to cover certain Kia and Hyundai models in certain locations as authorities report staggering rates of vehicle theft.

Apparently, the increase in thefts had something to do with a series of viral online videos that provided tutorials for stealing cars and encouraged numerous criminals to hot-wire their cars. In New Orleans alone, he had more than 1,000 Kia and Hyundai car thefts last year. This is a significant portion of his 4,400 vehicles stolen across the city.

Owners of these vehicles not only have to worry about thieves taking off with their vehicles, but they also have the potential for auto insurance companies to raise premiums or deny coverage altogether. We have to deal with the new reality.

Condemnation from South Korean automakers and the insurance industry continued as reports recently surfaced that auto insurance companies were refusing to cover new policies.

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Insurance company statement

Money has reached out to eight of the largest U.S. auto insurers for comment on how they are responding to rising thefts at Kia and Hyundai. Specifically, many of his 2011-2021 models, including Kia’s Soul and Sorento, and Hyundai’s Tucson and Elantra. It has been reported that these vehicles do not have an engine his immobilizer and can be stolen with just the driver and his USB cable. Three of the auto insurers (State Farm, Progressive, and Nationwide) responded prior to publication.

• “Some states have temporarily suspended new contracts for certain model years and trim levels of Hyundai and Kia vehicles,” State Farm said in a statement. I did,” he said.

• Drivers of affected vehicles have also been denied new insurance coverage from Progressive in parts of the U.S., and the company has raised premiums for some new customers, a spokesperson confirmed. In many cases, this explosive increase in theft has made it very difficult to insure these vehicles,” a spokeswoman said.

• Nationwide issued the following statement: “We will continue to provide insurance protection to Kia and Hyundai as we monitor Hyundai and Kia’s response to increased theft.”

• It’s unclear at this time who the companies are denying coverage, according to Insurance Information Institute spokesperson Mark Friedlander. He said other insurers are certainly aware of the situation and are likely analyzing options such as higher premiums and reduced coverage.

Kia and Hyundai statements on stolen vehicles, insurance

Kia and Hyundai have said they expect the insurance issue to be “temporary” and detailed steps they are taking to improve their vehicles’ theft defenses.

• The manufacturer also expressed disappointment at the insurer’s move to deny coverage.”Kia America regrets this decision by certain insurers and its impact on selected Kia vehicle owners and lessees.” (Hyundai basically used the same language.)

• But Friedlander says it’s not fair to blame insurance companies. “In this situation, manufacturers are completely at fault. They are building vehicles in a flawed way and they can be stolen very easily,” he says. “They shouldn’t expect insurance companies to bail them out here.”

• Manufacturers say insurance problems will be temporary, but thefts appear to be slowing as local officials warn about the number of incidents so far in 2023. I can not see.

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Conclusion

Insurers may deny new policies or raise premiums in the future in response to rising thefts of Kia and Hyundai vehicles.

Insurers have broad powers to deny coverage, raise premiums, or refuse renewals, and Friedlander said the scale of the problem has led underwriters to think about these options. says it must.

Those seeking insurance for affected vehicles are already facing difficulties. Also, since policies are often only for six-month terms, even drivers of affected models who have insurance may soon have to pay higher premiums on their next renewal. I have.