Progressive and State Farm have dropped some older Hyundai and Kia automobiles resulting from their lack of anti-theft options, in keeping with the businesses and a number of studies.
The transfer comes after social media posts confirmed the best way to begin sure Kia and Hyundai automobiles with out using a key, prompting theft warnings from police.
James Bell, a spokesperson for Kia, stated Monday the insurance coverage firms’ transfer impacts sure Kias constructed between 2011 and 2021 which can be geared up with a metal key to “insert and switch to begin” the ignition.
Ira Gabriel, a Hyundai spokesperson, hoped the actions can be short-term, he stated in a Monday electronic mail to USA TODAY, however didn’t specify which car years have been affected.
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What State Farm is saying
State Farm stated in a press release to USA TODAY the corporate has briefly stopped accepting new buyer purposes in some states for sure mannequin years and trim ranges of Hyundai and Kia automobiles as a result of theft losses have “elevated dramatically.”
The firm stated the transfer is a part of an try and assess threat and influence of extra declare prices on its clients.
What Progressive is saying
Insurance competitor Progressive introduced an analogous transfer to CNN and Money.com.
“During the previous yr we’ve seen theft charges for sure Hyundai and Kia automobiles greater than triple and in some markets these automobiles are nearly 20 instances extra more likely to be stolen than different automobiles,” firm spokesperson Jeff Sibel instructed CNN. “In response, in some geographic areas we now have elevated our charges and restricted our sale of new insurance coverage policies on a few of these fashions.”
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Which areas are impacted by the transfer?
Neither the insurance coverage firms nor the carmakers instructed USA TODAY which cities or states are impacted by the transfer focusing on some Hyundai and Kia automobiles.
CNN reported that the insurance coverage firms have stopped providing new policies in cities reminiscent of Denver and St. Louis.
Theft claims almost twice as widespread for older Hyundai, Kia automobiles
One group that research car insurance coverage knowledge, the Highway Loss Data Institute, beforehand claimed each Hyundai and Kia automobiles lack anti-theft expertise, making them extra prone to thievery.
In September, the Highway Loss Data Institute did an analysis of 2021 insurance coverage claims and stated each Hyundais and Kias are straightforward targets. Among 2015-19 automobiles, theft claims have been almost twice as widespread for Hyundai and Kia automobiles than all different producers.
The cause, the institute stated, is probably going as a result of each firms promote automobiles that do not have digital immobilizers to forestall thieves from driving off with the automobiles. Thieves are in a position to break in and bypass the ignition, the researchers stated.
Calling anti-theft capabilities “normal gear on almost all automobiles of that classic made by different producers,” the Highway Loss Data Institute stated Hyundai and Kia have each been gradual so as to add the cautionary options.
“Our earlier research present that car theft losses plunged after immobilizers have been launched,” stated HLDI Senior Vice President Matt Moore in September. “Unfortunately, Hyundai and Kia have lagged behind different automakers in making them normal gear.”
Engine immobilizers are actually normal on all Hyundai automobiles produced as of November 2021 – and have lengthy been normal gear on all Hyundai automobiles with push-button ignitions,” Gabriel stated, including that the carmaker presents new security options geared toward stopping thefts.
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Car producers reply to insurance coverage coverage modifications
Gabriel additionally stated Hyundai has taken steps to scale back the theft points, together with a free software program replace starting subsequent month.
“Hyundai can also be offering free steering wheel locks, as accessible, to pick regulation enforcement businesses throughout the nation for distribution to native residents who personal or lease affected fashions,” Gabriel wrote. “Owners may deliver their automobiles to a neighborhood Hyundai vendor for the acquisition and set up of a personalized safety package.”
The kits can be found for buy and set up at Hyundai dealerships and Compustar approved installers throughout the nation. They begin at $170 and there are additionally prices for set up.
Kia additionally stated in a press release that the corporate is testing enhanced safety software program for automobiles that did not include immobilizers initially. The firm plans to make software program upgrades accessible for many affected automobiles by mid-2023.
Saleen Martin is a reporter on USA TODAY’s NOW group. She is from Norfolk, Virginia – the 757 – and loves all issues horror, witches, Christmas, and meals. Follow her on Twitter at @Saleen_Martin or electronic mail her at [email protected].