Yes, some insurance companies have stopped insuring Hyundai and Kia vehicles due to theft.

At least two major insurance companies are not issuing new policies in some areas for certain Hyundai and Kia vehicles. Here’s what drivers need to know.

If you own a car from two manufacturers, you may not be able to insure it with some of the big companies, the social media post says.

“Major auto insurance companies are planning to exclude Hyundai and Kia from their plans due to theft!” poster claimed in a viral tweet dated January 30.

Recent online search data also shows that Hyundai and Kia drivers are looking for information about insurance policies.

QUESTION

Have some insurance companies stopped covering Hyundai and Kia models due to theft?

SOURCES

ANSWER

Yes, some insurance companies have stopped insuring Hyundai and Kia models due to theft. The change applies to new policies, not to existing customers.

WHAT WE FOUND

Progressive and State Farm are not issuing new rules in some areas for certain Hyundai and Kia vehicles due to an increase in auto thefts.

Both insurers say they will continue to insure existing customers who own these types of vehicles.

Scott Holman, a spokesman for the Insurance Information Institute (III), also confirmed that the institute only sees a suspension of new customer applications in some states, rather than a drop in existing customers.

Insurance companies have not provided a list of vehicles they will not insure right now. But a Kia spokesman said the affected models include “Kia vehicles from 2011 to 2021 fitted with a steel ignition key for turn-to-start operation.”

Hyundai did not provide information on the affected models, but a spokesman said in a statement that the company “regrets this decision by the insurers and its impact on some Hyundai vehicle owners and renters.”

Auto manufacturers and insurance companies have also not confirmed which cities or states are affected by the change. But two State Farm employees told partner station WWL-TV VERIFY that the company’s restrictions apply in Georgia, Louisiana, Oregon, Washington, and Pennsylvania.

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State Farm has “temporarily stopped accepting new customer applications in certain states for Hyundai and Kia vehicles of certain model years and trim levels as theft losses for these vehicles have skyrocketed,” a spokesman said.

“We take our responsibility to manage risk and the impact of excessive claims costs seriously on all of our clients,” the spokesperson said. “In this case, it became necessary to take measures to protect our policyholders and our business.”

In some geographies, Progressive has also restricted the sale of new insurance policies on select Hyundai and Kia models as a result of theft, the spokesman said.

“Last year, we saw the number of thefts of some Hyundai and Kia vehicles more than triple, and in some markets, these vehicles are nearly 20 times more likely to be stolen than other vehicles,” the spokesman said. “Given that we rate our policies based on the level of risk they pose, this explosion in theft in many cases makes these vehicles extremely difficult for us to insure.”

There is at least one other large insurance company that does not take such steps as Progressive and Sovkhoz.

Nationwide told VERIFY that it is “monitoring the latest Hyundai and Kia theft trends and the reactions of these automakers,” but the company continues to provide them with insurance coverage.

Other major insurance companies, including Allstate, Liberty Mutual, Geico and USAA, did not respond to requests for comment on whether they would continue to insure Hyundai and Kia vehicles.

Why Hyundai and Kia car thefts are on the rise

Theft of Hyundai and Kia has “drastically increased” across the country in 2022 due in part to the “misuse of social media platforms” such as YouTube, according to a January 2023 National Crime Bureau (NICB) press release.

According to a press release, the NICB and other insurance industry associations sent a joint letter to YouTube CEO Susan Wojcicki to “remove the theft instruction videos” of Hyundai and Kia vehicles.

But the increase in Hyundai and Kia thefts started before 2022.

According to the 2021 Insurance Claim Analysis by the Highway Accident Data Institute (HLDI), auto theft claims for 2015-2019 vehicles were almost twice as common for Hyundai and Kia vehicles than for all other manufacturers.

Probably cars get stolen more often than others because they don’t have electronic immobilizers. It’s a device that “automatically turns on when the vehicle is turned off and prevents unauthorized movement or starting of the engine,” Holman said.

The city of Seattle is also suing Kia and Hyundai over allegations that the denial of anti-theft technology in some vehicles has contributed to an exponential increase in theft, partner station VERIFY KING 5 reported in January 2023.

From 2021 to 2022, Kia and Hyundai car thefts increased by 363% and 503%, respectively, according to the city.

Hyundai said in a statement that engine immobilizers are standard on all vehicles produced as of November 2021 and “have long been standard equipment on all Hyundai vehicles with push-button ignition.”

The manufacturer also said it has “taken a number of actions to reduce the frequency of claims related to affected vehicles,” including an upcoming software update that will be available to customers free of charge from March 2023.

Hyundai is also providing free steering wheel locks to some customers who drive affected vehicles. These locks are distributed by select law enforcement agencies throughout the country.

People can also bring their Hyundai to a local dealer to purchase and install a safety kit.

Kia has said all of its 2022 models and trims have engine immobilizers. The manufacturer also continues to develop other solutions for vehicles that were not originally equipped with immobilizers, including advanced security software.

Like Hyundai, Kia also provides customers with free steering wheel locks through local law enforcement.

For those who don’t have a standard immobilizer in their car, III also recommends checking with your car dealer or manufacturer to see if they can install one.

The VERIFY team works to separate fact from fiction so you can understand what is true and what is false. Please consider subscribing to our daily newsletter, text alerts and our YouTube channel. You can also follow us on Snapchat. Twitter, Instagram, Facebook and TikTok. learn more”

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