At least two major automotive insurers are refusing to insure some Kia and Hyundai models because they lack anti-theft systems common in today’s cars, according to reports.
Both State Farm and Progressive confirmed with CNN that they will no longer write policies for certain Kia and Hyundai models manufactured between 2015-2019.
In September 2022, the Insurance Institute for Highway Safety, or IHHS, and the Highway Casualty Data Institute found that vehicle theft claims for 2015-19 Hyundai and Kia vehicles were twice as common as for the Dodge Charger SRT Hellcat.
“Car theft has paid off during the epidemic,” HLDI senior vice president Matt Moore said in the report. “These numbers tell us that some vehicles are more likely to be targeted because they are faster or cost more money, while others are easier to steal.”
The Hyundai and Kia vehicles being stolen don’t have electronic sensors, the report said, which could prevent a thief from just breaking into the car and turning off the ignition. Once immobilizers were added to the cars, Moore said, vehicle thefts from Kias and Hyundais “dropped.”
In the year In 2015, 26 percent of Kia and Hyundai vehicle models were standard, but 96 percent of other manufacturers were standard, according to the report.
State Farm and Progressive did not immediately respond to requests for more information about the claims.
In a statement to CNN, State Farm confirmed that it has temporarily stopped writing insurance policies for some Kia and Hyundai model years and trim levels in some states.
The Progressives confirmed with CNN that they are making changes. Kias and Hyundais are limiting the sale of open insurance policies to high-risk vehicles by increasing progressive rates in some areas.
In some cities, Kia and Hyundai vehicle thefts are as high as 300%.
Videos posted on social media show how people can start the vehicles without a key but on the end of a phone charger or USB cable, a trend that has led teenagers across America to try to steal Kia and Hyundai vehicles and go for a joyride. .
Manufacturers are working on theft, Hyundai offers steering locks in municipalities such as Clearwater, Florida.
Another fix that makes the rounds was created by Suntrup Automotive Group in St. Louis, Missouri, with a redesigned off-the-shelf Bluetooth switch that can be attached to the car to stop the switch.