Major insurers refuse to cover older Hyundai and Kia models over theft concerns
Some models are up to 20 times more likely to be stolen than other vehicles, a Progressive spokesperson said.
State Farm and Progressive, two of the largest automobile insurers in the United States, are refusing to issue policies in some cities for owners of certain Hyundai and Kia models that the insurance companies consider too easy to steal.
"State Farm has temporarily stopped writing new business in some states for certain model years and trim levels of Hyundai and Kia vehicles because theft losses for these vehicles have increased dramatically," the nation's largest insurer told CNN on Saturday. "This is a serious problem impacting our customers and the entire auto insurance industry."
Some Hyundai and Kia models from 2015 through 2019 are about twice as likely to be stolen as other vehicles made in these years, according to a report from the Highway Loss Data Institute. This is because of an issue with computer chips in the car and their key fobs.
Progressive, the nation's third-largest auto insurer, told the news outlet it is also cutting back on insuring certain Hyundai and Kia models in some areas and that theft in some areas is far worse than predicted by the data institute.
"During the past year we’ve seen theft rates for certain Hyundai and Kia vehicles more than triple and in some markets these vehicles are almost 20 times more likely to be stolen than other vehicles," spokesperson Jeff Sibel said. Progressive will continue to insure people who already have policies with it, he said.
"Car theft spiked during the pandemic," Highway Loss Data Institute Senior Vice President Matt Moore said in September. "These numbers tell us that some vehicles may be targeted because they’re fast or worth a lot of money and others because they’re easy to steal."