Why some insurers will not cowl easy-to-steal Kia, Hyundai vehicles

INDIANAPOLIS — Some insurance coverage corporations is not going to write a brand new auto coverage for vehicles deemed straightforward to steal.

It comes on the heels of a social media development that exhibits folks learn how to steal vehicles utilizing a USB wire.

Hyundais and Kias made between 2015 and 2019 are being focused as a result of they’re lacking a safety characteristic now commonplace of their autos.

That safety characteristic is known as an immobilizer. It tells the automotive that it is a key within the ignition, not one other device. 

Now, State Farm will not write new insurance policies in some cities for the automotive varieties affected.

State Farm informed 13News, partially, that they “quickly stopped accepting new buyer purposes 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 spokesperson added, “On this case, it turned essential to take motion to guard our policyholders and our enterprise.”

CNN studies Progressive is doing the identical.

Neither firm stated if Indianapolis is on the record of affected cities.

Scott Holeman with the Insurance coverage Info Institute stated that is an uncommon transfer by insurers.

“I can not consider a time the place we have seen that sure makes and fashions have been eradicated for protection,” Holeman stated. 

Nonetheless, there are different protection choices. 

“The excellent news is, insurance coverage is very aggressive. There are lots of people that need your corporation,” Holeman stated. 

Kia and Hyundai each say {that a} software program replace is coming. Till then, house owners might wish to think about a steering wheel lock. 

To search out out in case your automotive is affected, learn your house owners handbook and ensure your findings with the automotive maker. 

Kia America regrets this resolution by sure insurers and its affect on house owners and lessees of choose Kia autos, which we anticipate will likely be momentary. Engine immobilizers at the moment are commonplace on all Kia autos and have all the time been commonplace tools on Kia autos with push-button ignitions. Moreover, Kia has taken a sequence of actions to cut back the declare frequencies related to affected autos. Kia has been growing and testing enhanced safety software program for autos not initially geared up with an immobilizer and has began notifying house owners of sure fashions of the provision of this software program improve for free of charge to customers. Kia anticipates that it’ll make software program upgrades out there for many affected autos by mid-2023. Kia can be persevering with to supply free steering wheel locks, as out there, to regulation enforcement businesses throughout the nation for distribution to native residents who personal or lease affected fashions. Kia house owners with questions relating to their automobile might contact our Buyer Care group straight at 1- 800-333-4542 (4Kia) or on-line through the Homeowners Portal on kia.com

Full assertion from Hyundai:

Hyundai Motor America regrets this resolution by insurers and its affect on choose Hyundai automobile house owners and lessees, which we anticipate will likely be momentary.  Engine immobilizers at the moment are commonplace on all Hyundai autos produced as of November 2021 — and have lengthy been commonplace tools on all Hyundai autos with push-button ignitions. 

Moreover, Hyundai has taken a sequence of actions to cut back the declare frequencies related to affected autos, together with an upcoming software program replace, which will likely be out there starting subsequent month and supplied for free of charge to clients.  Hyundai can be offering free steering wheel locks, as out there, to pick regulation enforcement businesses throughout the nation for distribution to native residents who personal or lease affected fashions.  Homeowners might also convey their autos to a neighborhood Hyundai vendor for the acquisition and set up of a personalized safety package.  We apologize for the inconvenience to affected clients.