Progressive State Farm “targeted for specific year models in some regions”
CNN reported on the 28th that some insurance companies in the US are refusing to provide insurance for Hyundai and Kia models that have been subject to the so-called ‘theft challenge’ in some areas.
According to reports, insurance companies Progressive and State Farm are not insuring Hyundai and Kia models that do not have anti-theft technology applied in cities such as Denver, Colorado and St. Louis, Missouri.
Statefarm told CNN that “some states have stopped purchasing insurance for certain year models of Hyundai and Kia vehicles,” because “theft losses for these vehicles have increased significantly.”
“Theft rates for certain Hyundai and Kia models have more than tripled in the past year, and in some regions these vehicles have been stolen 20 times more than others,” said Progressive. “In response, in some regions we have increased insurance rates. “We are restricting insurance sales for some models.”
However, the two companies did not specifically disclose in which regions they stopped providing insurance.
Previously, as the so-called ‘Hyundai-Kia car stealing’ social media challenge was rampant in some areas of the United States, vehicle thefts from the two companies surged.
The target vehicles are some models of Kia Motors produced from 2011 to 2021 and specific models of Hyundai Motors produced between 2016 and 2021. Most of these vehicles feature metal keys and no ‘engine immobilizer’, an anti-theft device.
The Highway Loss Data Lab (HLDL), a non-profit organization, analyzed the number of insurance claims and found that the theft rate of some Hyundai and Kia models released between 2015 and 2019 was more than twice that of other vehicles of the same model year.
As the theft soared, car owners in Wisconsin, Ohio, Missouri, and Kansas filed a class action lawsuit demanding compensation for damages last year claiming that Hyundai and Kia vehicles were stolen due to defects, and Columbus, Ohio, St. Louis, Missouri, and Seattle, Washington. Local governments have also filed lawsuits.
Hyundai and Kia are taking countermeasures by providing steering wheel locks and anti-theft security kits to car owners.
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