“Two major insurance companies have refused to issue new policies on some Kias and Hyundais in the St. Louis region as theft rates of those vehicles remain high following last year’s surge,” reports the St. Louis Post-Dispatch.
Both Progressive and State Farm, the Post-Dispatch says, “are declining to open new policies on Kias and Hyundais altogether, while drivers with existing plans are stuck paying increasingly high premiums.”
In a statement to The Drive automotive site, Progressive confirmed the news. “Due to the theft risk that some Hyundai and Kia vehicles present, in many cases it makes these vehicles difficult to insure, so in certain areas of the country we have adjusted our acceptance criteria for new business (there is no change for existing customers) on some of these models,” the company says.
Denver’s ABC7 reports that Progressive “has restricted offering coverage on new policies in the Denver area” on certain Kia and Hyundai models.
A Nationwide Theft Problem
The reports come after news of a surge in thefts of certain older Kia and Hyundai cars nationwide.
The vehicles lack an immobilizer — a common part that prevents car thieves from bypassing the ignition system. Higher trim levels often include the immobilizer, but the least-expensive models do not.
Social media videos have circulated, showing thieves bypassing the ignition system with a simple USB cable.
An industry study showed last year that loss claims for Hyundai and Kia models from those years were nearly twice as common as claims for vehicles made by any other manufacturer.
Now, reportedly, insurance companies have begun declining coverage on affected cars.
Michael Barry, chief communications officer at the Insurance Information Institute, told Wisconsin’s WISN, “The auto insurance industry has become quite alarmed at this trend when it comes to Kia and Hyundai.”
Refusing coverage, Barry told WISN, remains relatively rare. But “Kia and Hyundai owners are also likely to face higher rates,” Barry told the news channel.
It’s Not Every Hyundai or Kia
Most of the vehicles targeted have been base model trims (and only base model trims) of 2015-or-newer Hyundai and 2011-or-newer Kia models.
Those vehicles share two relevant traits: They lack an immobilizer, and breaking in through the rear window does not appear to trigger an alarm.
An immobilizer is an electronic security device that prevents a car from starting unless the correct transponder — built into the smart key — is present. Most modern cars have them. But Hyundai and Kia, both part-owned by South Korea’s Hyundai Motor Company, did not add them to the base model trims of their entire fleet until recently.
If you’re a Hyundai or Kia owner wondering whether you should be concerned, check your key. Your car may lack an immobilizer if it starts with a simple steel key with no plastic parts. If the head of your key is contained in a plastic housing, or you have a fob with buttons to lock and unlock the doors remotely, your car has an immobilizer.
Both companies have confirmed that all their 2022 models use immobilizers.
Retrofit Kits and Steering Wheel Locks May Help
Hyundai now offers a retrofit anti-theft kit that may minimize theft risk. It costs $170 plus labor fees for installation.
There is also a free option for some frustrated Hyundai and Kia owners. The companies have distributed steering wheel locks to many police departments nationwide. Police are giving them away to concerned Hyundai and Kia owners.
Kia Working on Solutions
A Kia representative tells us the company “regrets this decision by certain insurers and its impact on owners and lessees of select Kia vehicles, which we anticipate will be temporary.” Kia points out that engine immobilizers are now standard across its entire lineup and says it “has been developing and testing enhanced security software for vehicles not originally
equipped with an immobilizer and has started notifying owners of certain models of the availability of this software upgrade at no cost to consumers.”
The company expects to have the software “available for most affected vehicles by mid–2023.” In the meantime, it is providing free steering wheel locks through many police departments and encourages owners to “contact our Customer Care team directly at 1–
800–333–4542 (4Kia) or online via the Owners Portal on kia.com” if they have concerns.
