Why Are Insurance Companies Not Insuring Some Kia Hyundai Vehicle Models?

Owners of certain Kia and Hyundai vehicle models face increasing difficulties in securing auto insurance due to a surge of thefts affecting specific models.

Kia and Hyundai Thefts

Many Kia and Hyundai vehicles from model years 2011 through 2021 lack an immobilizer—a device that prevents the engine from running unless the correct key is present. This absence has made these vehicles unusually susceptible to theft.

This vulnerability was widely exposed through social media platforms, where videos demonstrated how easily these cars could be stolen using simple tools like a screwdriver and a USB cable. As these videos went viral, a worrying trend emerged: a sharp increase in thefts of these vehicles.

Impact on Car Insurance

For insurance companies, the decision to insure a vehicle involves assessing the risk of paying out claims. When a particular model becomes a frequent theft target, it naturally becomes a higher risk and less attractive option for insurers, which is what happened with the affected Kia and Hyundai models.

Theft rates soared, leading to a significant uptick in insurance claims from owners seeking compensation for stolen or damaged vehicles. In response, some insurers have begun withdrawing coverage offers for these models or dramatically increased premiums to offset the heightened risk. This change affects new policy applicants and existing policyholders who may face steep rate hikes at renewal time.

Reactions From the Market

The insurance industry’s reaction has had a considerable impact on the resale value of the affected models. Potential buyers, aware of the theft risk and the difficulty in obtaining affordable insurance, are understandably hesitant to purchase these vehicles.

The situation has prompted responses from Kia and Hyundai themselves. Both companies have taken steps to address the theft vulnerability, such as providing software updates and anti-theft devices to owners at no extra cost. These measures aim to mitigate the risk of theft and, by extension, make these cars more insurable.

Insuring Kia and Hyundai

Looking ahead, the ability of Kia and Hyundai to ensure their newer models are equipped with standard anti-theft technology, including immobilizers, will be crucial. Such improvements are essential for lowering theft rates, restoring consumer confidence and stabilizing insurance costs.

Utilizing steering wheel locks, installing aftermarket immobilizers, and parking in secure, well-lit areas can help mitigate the risk of theft. For those in the market for a new or used car, it’s advisable to research the theft rates and insurance costs associated with different models.

Contact Us

Contact Davis Insurance Group in Hickory, North Carolina, to learn more about insuring a Kia or Hyundai and get personalized auto insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.