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Some auto insurers are refusing to cowl sure Hyundai and Kia fashions

CNN  — 

Progressive and State Farm, two of America’s largest auto insurers, are refusing to put in writing insurance policies in sure cities for some older Hyundai and Kia fashions which were deemed too simple to steal, in line with the businesses.

A number of studies say the businesses have stopped providing insurance coverage on these autos in cities that embody Denver, Colorado and St. Louis, Missouri. The insurance coverage corporations didn’t inform CNN which cities or states had been concerned.

The Freeway Loss Information Institute launched insurance coverage claims information final September that confirmed what varied social media accounts had been saying: Some 2015 by means of 2019 Hyundai and Kia fashions are roughly twice as prone to be stolen as different autos of comparable age, as a result of a lot of them lack among the primary auto theft prevention expertise included in most different autos in these years, in line with the HLDI.

Particularly, these SUVs and vehicles don’t have digital immobilizers, which depend on a pc chip within the automotive and one other in the important thing that talk to verify that the important thing actually belongs to that automobile. With out the correct key, an immobilizer ought to do exactly that – cease the automotive from transferring.

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

Stealing these autos grew to become a social media development in 2021, in line with HLDI, as automotive thieves started posting movies of their thefts and joyrides and even movies explaining learn how to steal the vehicles. 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 sure 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 an announcement supplied to CNN. “It is a significant issue impacting our prospects and your complete auto insurance coverage trade.”

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

“Through the previous 12 months we’ve seen theft charges for sure Hyundai and Kia autos greater than triple and in some markets these autos are virtually 20 instances extra prone to be stolen than different autos,” he wrote. “On condition that we worth our insurance policies primarily based on the extent of threat they symbolize, this explosive enhance in thefts in lots of instances makes these autos extraordinarily difficult for us to insure. In response, in some geographic areas we now have elevated our charges and restricted our sale of latest insurance coverage insurance policies on a few of these fashions.”

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 learn how to defend their autos from theft.

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

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

Hyundai and Kia function as separate corporations in america, however Hyundai Motor Group owns a big stake in Kia and varied Hyundai and Kia fashions share a lot of their engineering.

Engine immobilizers are actually normal on all Kia and Hyundai autos, the businesses stated in separate statements. Each automakers additionally stated they’re creating safety software program for autos that weren’t initially outfitted with an immobilizer. Kia stated it has begun notifying homeowners of the supply of this software program, which might be supplied at no cost. Hyundai stated its free software program free replace might be accessible subsequent month.

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

Correction: A earlier model of this story misstated the price of Hyundai safety kits.

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