Some Kia and Hyundai owners have faced a serious danger of vehicle theft over the last few years. Now, reports are coming out that even if they’ve avoided theft, they might be up against a new problem: getting insurance coverage. Evidently, major insurance companies are opting to refuse coverage rather than risk paying out on a stolen car.
Last year, posts on social media demonstrating how easy it can be to steal some Kia and Hyundai models built between 2011 and 2021 went viral. Theft rates of the Korean cars skyrocketed across the nation. 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 hardest by the spike in thefts are Colorado and Missouri. Now, reports from each state indicate that major insurance companies are flat-out refusing to provide coverage if the customer in question has a vulnerable Kia or Hyundai model.
More: Groups Push YouTube To Remove Videos Showing How To Steal Hyundais And Kias
First spotted by The Drive, insurance firm Progressive told Denver7 News that it’s “restricted offering coverage on new policies in the Denver area on certain models of the Korean automakers Hyundai and Kia because of the alarming rate by which these vehicles are getting stolen in the Denver area.”
According to STLToday, the same issue is taking hold in St. Louis. It says that 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 salesperson for State Farm, confirmed that State Farm made a similar decision in November of last year as well.
It’s not just these two providers or new policies that are affected either. Many current policyholders reported dramatic increases in policy costs. Premiums have gone up at other insurance companies too and what’s worse is that in some cases, those premiums are rising on vehicles that aren’t as vulnerable.
Just one example is that of Jay Zunich who told STLToday that when his premium went up by about 25 percent, he started shopping around. The companies that would provide him with coverage charged even more than he was already paying, even though his Elantra uses a push-button start which means that it can’t be stolen as easily as those models that are mainly affected by the theft trend.
