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Insurers reassess Kia, Hyundai coverage after thefts spike

by
December 16, 2022

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Minneapolis police have confirmed a record number of auto thefts of some older model Kia and Hyundai vehicles, an 893% increase compared to 2021, attributed to how-to videos on social media. He said he was blaming the problem.

A 14-year-old boy suffered life-threatening injuries after vandalizing a stolen Kia last weekend, MPD said.

“This is outrageous. What’s going on here is completely insane,” said MPD Chief Brian O’Hara. “Kids are learning to do things quickly, but the problem is that it’s causing very serious tragedy.”

The theft problem has gotten so bad that insurers are now considering whether to continue contracting vulnerable Kia and Hyundai models, an industry expert tells 5 EYEWITNESS NEWS. .

“I haven’t seen any major insurers like Kia or Hyundai start taking out insurance because they get stolen so often,” said Mark Kurda, vice president of public affairs for the Minnesota Insurance Federation. ‘ said.

These screen grabs from social media videos show how some Kia and Hyundai vehicles can be started using a USB cable.

The nonprofit trade association represents more than 40 large and small insurance companies doing business in the state.

“The insurance premiums are high because the risk of theft is so high,” Kurda says.

Law enforcement said a social media challenge exposed flaws in the turnkey ignition vehicle.

Auto industry experts say that some older model vehicles built between 2011 and 2021 lack anti-theft devices known as immobilizers, which thieves exploit.

A car thief destroyed Brian Halbach’s Hyundai Elantra.

“They threw out what was in my console and everything – they just threw it out the window,” Halbach said.

Halbach, a relative of a KSTP employee, said the Elantra was stolen a second time outside his home in Minneapolis.

“They didn’t go as far back then,” he said. “I left the gas mostly on ‘E’ — I didn’t have time to fill it up. It worked in my favor,” Halbach said.

Kurda said some insurers are considering reducing the blanket coverage that lenders require for car owners who are paying off their loans.

“If you own a car, you don’t have to have comprehensive coverage, but if you have a loan, you should have comprehensive coverage. Insurance companies have a new model with such a model. We are starting to say that we are not going to sell comprehensive insurance for Kia and Hyundai this year,” Kurda said.

“You may have to do some research and find an insurance company. It’s going to be difficult to make a lot of phone calls to figure out what we’re offering,” added Kulda.

5 EYEWITNESS NEWS has reached out to several major insurers to see if there may be changes for consumers driving the vehicles in question. So far only Progressive has issued a response.

“We are committed to providing consumers with affordable insurance solutions based on the level of risk they represent, while ensuring that policies are priced accurately. Due to the risk of theft present in some Hyundai and Kia vehicles, which often makes it difficult to insure these vehicles, we have adjusted our acceptance criteria for new trade for some of these models. We will continue to monitor how this issue develops and hope to revisit our decision as the risk of theft decreases and community awareness increases.”

– Progressive Spokesperson

Automaker response

Hyundai’s American office emailed the following response regarding the increase in thefts:

“We remain concerned about the increasing theft of certain Hyundai vehicles that have been targeted in coordinated social media campaigns. In addition, Hyundai offers two options for owners of these older model vehicles targeted by thieves.

“Hyundai has released glass break sensor security kits that target the intrusion methods thieves use to break into these vehicles. The kit has a suggested retail price of $170 and estimated installation costs may vary by location.

“Hyundai is also developing a software update to further protect these targeted vehicles. updates are expected to become available.

“Please note that all Hyundai vehicles meet or exceed Federal Motor Vehicle Safety Standards. Previous models without push-button ignition do not have engine immobilizers. As of November 2021, engine immobilizers will , was standard equipment on all Hyundai vehicles produced.

“Customers with questions can contact the Hyundai Customer Care Center at 800-633-5151.”

– Hyundai Motor America

A Kia America representative also responded with the following statement:

“Kia is saddened to learn this week that a Minneapolis boy was found injured in a crashed car reportedly stolen. We remain concerned about the recent trend of targeting certain Kia vehicles with steel keys and “turn-to-start” ignition systems, driven by Such criminal activity endangers communities and violates property rights.

“While no vehicle is completely anti-theft, Kia Motors, through interested local law enforcement agencies, will provide customers with steering wheel locks free of charge to the concerned owners of these vehicles, subject to available supply. continue to provide.

“Kia Motors also continues its efforts to develop additional solutions for vehicles that were not originally equipped with immobilizers, including the development and testing of enhanced security software. We will be announcing soon whether the software upgrade will be available to customers.

“All 2022 models and trims have an immobilizer applied at the beginning of the year or as a running change, and all Kia vehicles meet or exceed federal motor vehicle safety standards.

“Kia customers with questions about Kia should contact the Kia Consumer Assistance Center directly at 1-800-333-4542 (Kia).”

– Kia America

    Related story: Kia Hyundai Auto Theft Insurance Eric Shallow

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