US insurance companies refuse to buy insurance for Hyundai and Kia… The reason is?

▲ Hyundai Motor Dealer Sign Board in the United States

CNN reported on the 28th local time that some insurance companies in the United States are refusing to provide insurance for Hyundai and Kia models that have been subject to the so-called ‘theft challenge’.

Insurers Progressive and State Farm do not insure Hyundai and Kia models that do not have anti-theft technology in cities such as Denver, Colorado and St. Louis, Missouri.

Statefarm told CNN that “some states have stopped buying insurance for certain model years of Hyundai and Kia vehicles,” because “theft losses for these vehicles have risen significantly.”

“Theft rates for some Hyundai and Kia models have more than tripled in the past year, and in some areas, these vehicles have been stolen 20 times more than others,” said Progressive. We are restricting the sale of insurance for models.”

However, the two companies did not specifically disclose in which regions they stopped providing insurance.

Previously, as the so-called ‘Hyundai Kia steals’ social media challenge was rampant in some areas of the United States, thefts of vehicles from both companies increased.

The target vehicles are certain Kia Motors models manufactured between 2011 and 2021, and certain Hyundai Motors models manufactured between 2016 and 2021.

Most of these vehicles include metal keys and no anti-theft ‘engine immobiliser’.

As the theft escalated, owners in Wisconsin, Ohio, Missouri, and Kansas filed class action lawsuits seeking damages alleging Hyundai and Kia vehicles were stolen due to defects last year, and local governments filed the case too.

Hyundai and Kia are taking countermeasures by providing car owners with steering wheel locks and anti-theft security kits.

(Photo = AP, Yonhap News)

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