Some insurers have stopped covering certain Hyundai and Kia models, an unprecedented response to the high theft rates for those vehicles.
The Highway Loss Data Institute says frequently stolen vehicles lack passive immobilizers, which help prevent potential thieves from heating up the vehicle. Popular TikTok posts also provide instructions on how to steal these cars.
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Car insurance usually covers a stolen vehicle as long as you have comprehensive coverage. However, theft claims for 2015 to 2019 Hyundai and Kias models tripled in the first half of 2022 compared with the first half of 2019, according to December data from HLDI. Kia Seltos, Kia Sportage 4WD and Hyundai Tucson 42D models without immobilizers are six times more likely to have a theft complaint than their respective models with standard immobilizers.
As a result, major auto insurers including Progressive and State Farm have stopped covering some Kia and Hyundai models in some states.
Robert Passmore, vice president of personal lines for the American Property Accident Insurance Association, a trade group for home, auto and business insurers, said: Insurers are responding to a clear change in the risk of theft for these vehicles. “Decisions regarding pricing or coverage are made by each insurer based on their individual risk assessment.” If an insurance company decides these vehicles are too risky to cover, it may stop insuring those vehicles, Passmore said. They may also charge more to cover them.
Videos on TikTok challenging teens to steal vulnerable cars with just a USB cord have had more than 40 million views with the hashtag # “Kia Boyz.”
“Hyundai and Kia have lagged behind other manufacturers in providing passive immobilizers and standard equipment on their vehicles,” the December report from HDLI said. Passive immobilization is standard on only 26% of Kia and Hyundai models for 2015 models, compared with 96% of all other manufacturers combined.
Michael McCloskey, an associate professor of risk management at Temple University, said that given the high theft rates for specific car models, it’s understandable that insurers would react so strongly.
“It’s just pure odds,” he said. “Insurers have a bad reputation, but especially with this one, you just can’t make those numbers work.”
McCloskey says he is not aware of another situation in which an insurance company has eliminated a certain model entirely, but there are cases where homeowners insurance companies have refused to insure homes in areas that are particularly prone to wildfires or storms.
McCloskey says some insurance companies may cover these Kia or Hyundai models if you have an anti-theft device like a steering wheel lock. Even if a thief is able to get past the steering wheel lock, they’re more likely to switch to a vehicle that doesn’t have a lock.
“The gimmick with the TikTok thing is that you can start your car by hot-wired it, but if you have a Club on it, you’d be surprised how effective that will be at stopping it,” says McCloskey. who’s that.
On top of that, motorists should shop around for coverage. Even if one or two insurance companies have stopped offering coverage, that doesn’t mean they all do.
“Whenever you don’t like the price of insurance, you just shop around,” says McCloskey. “There are many (companies). I don’t think they’ve all given up on it.”
Angele Doakes, senior manager at Strategy and RevOps and property and casualty specialist at Policygenius, said: “None of our carriers have informed us though that they are not. Insurance also covers certain vehicles, but it’s important to know your individual needs and risks. Working with your insurance agent or advisor can help ensure you’re covered for the problems you’re most at risk of and is the best way to protect yourself against any changes. that your insurer can do.”
