2 of America's largest auto insurance companies, Progressive and State Farm, are refusing to cover certain Hyundai, Kia models

2 of America’s largest auto insurance companies, Progressive and State Farm, are refusing to cover certain Hyundai, Kia models

Progressive and State Farm, two of America’s largest auto insurers, are refusing to write insurance policies in certain cities for some older Hyundai and Kia models which were deemed too simple to steal, in accordance to the businesses.

Several stories say the businesses have stopped providing insurance on these autos in cities that embrace Denver, Colorado and St. Louis, Missouri. The insurance corporations didn’t inform CNN which cities or states have been concerned.

The video featured is from a earlier report.

The Highway Loss Data Institute launched insurance claims knowledge final September that confirmed what varied social media accounts had been saying: Some 2015 via 2019 Hyundai and Kia models are roughly twice as probably to be stolen as different autos of related age, as a result of many of them lack some of the fundamental auto theft prevention know-how included in most different autos in these years, in accordance to the HLDI.


Specifically, these SUVs and automobiles haven’t got digital immobilizers, which depend on a pc chip within the automobile and one other in the important thing that talk to affirm that the important thing actually belongs to that automobile. Without the fitting key, an immobilizer ought to just do that — cease the automobile from shifting.

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

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

“State Farm has briefly stopped writing new enterprise in some states for certain mannequin years and trim ranges of Hyundai and Kia autos as a result of theft losses for these autos have elevated dramatically,” the insurer stated in a press release offered to CNN. “This is a significant issue impacting our prospects and the complete auto insurance trade.”

RELATED: Thieves stole their Kias multiple times, now their insurance companies are dropping them

Progressive can also be reducing again on insuring these automobiles in some markets, spokesman Jeff Sibel stated in an emailed assertion.

“During the previous 12 months we have seen theft charges for certain Hyundai and Kia autos greater than triple and in some markets these autos are virtually 20 instances extra probably to be stolen than different autos,” he wrote. “Given that we value our insurance policies primarily based on the extent of threat they symbolize, 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 new insurance insurance policies on some of these models.”

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

Michael Barry, a spokesman for the Insurance Information Institute, stated it was very uncommon for auto insurers to merely cease writing new insurance policies on a given make or mannequin of automobile.

“They usually need to develop their market share relying on the place they’re doing enterprise,” he stated.

ALSO SEE: Car insurance rates to rise 8.4% in 2023: Report

Hyundai and Kia function as separate corporations within the United States, however Hyundai Motor Group owns a big stake in Kia and varied Hyundai and Kia models share a lot of their engineering.

Engine immobilizers are now commonplace on all Kia and Hyundai autos, the businesses stated in separate statements. Both automakers additionally stated they are growing safety software program for autos that weren’t initially geared up with an immobilizer. Kia stated it has begun notifying homeowners of the provision of this software program, which might be offered at no cost. Hyundai stated its free software program free replace might be obtainable subsequent month.

Hyundai additionally stated it’s offering free steering wheel locks to some police departments across the nation to give native residents who’ve Hyundai models that might be simply stolen. Hyundai sellers are additionally promoting and putting in safety kits for the autos, the corporate stated.

(The-CNN-Wire & 2022 Cable News Network, Inc., a Time Warner Company. All rights reserved.)

INTERACTIVE SAFETY TRACKER Track crime and safety in your neighborhood