Kia and Hyundai Owners Turned Down for Theft Risk Insurance Coverage
Reports say that companies like Progressive and State Farm are rejecting new policies for Kia and Hyundai owners.
for Esteban Rios
Some Kia and Hyundai owners have faced serious danger of vehicle theft in recent years. Now, reports are surfacing that even if they have prevented the theft, they may be facing a new problem: obtaining insurance coverage. Clearly, the major insurance companies are choosing to decline coverage rather than risk paying for a stolen car.
Last year, social media posts demonstrating how easy it can be to steal some Kia and Hyundai models built between 2011 and 2021 went viral. Theft rates for Korean cars have skyrocketed across the country. In response, police departments, city officials, and others called for action from both owners and the automakers themselves.
Two of the states that have been hit hardest by the uptick in thefts are Colorado and Missouri. Now reports from every state indicate that major insurance companies flatly refuse to provide coverage if the customer in question has a vulnerable Kia or Hyundai model.
More: Groups pressure YouTube to remove videos showing stealing Hyundais and Kias
First discovered by The Drive, insurance firm Progressive told Denver7 News that it “is offering restricted coverage on new policies in the Denver area on certain models of Korean automakers Hyundai and Kia due to the alarming rate at which that these vehicles are stolen in Denver.” area.”
According to STLToday, the same problem is occurring in St. Louis. He says Progressive “made the decision to stop offering new policies in November,” according to Jim Kirn, owner of KIRNCO Insurance in St. Louis, which sells Progressive insurance. Josh Franklin, a State Farm salesperson, confirmed that State Farm also made a similar decision in November of last year.
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It’s not just these two providers or the new policies that are affected. Many current policyholders reported dramatic increases in policy costs. Premiums have gone up at other insurance companies, too, and worse, in some cases, those premiums go up on vehicles that aren’t as vulnerable.
Just one example is that of Jay Zunich, who told STLToday that when his premium increased by 25 percent, he started shopping around. The companies that would provide you with coverage charged even more than what you were already paying, even though your Elantra uses a push button start, which means it can’t be stolen as easily as those models that are mostly affected by the push-button start trend. Stole.