(WBBM NEWSRADIO) — A report released in September 2022 from the Insurance Institute for Highway Safety found that Hyundai and Kia models from 2015 – 2019 were nearly twice as likely to be stolen as other vehicles released over the same period.
Now, those security concerns have caused State Farm and Progressive to pump the brakes on issuing new auto insurance policies for certain model years of Hyundai and Kia vehicles in some states.
“They’re going to be pausing taking on new policy holders for owners of certain vehicles,” said Scott Holeman, a spokesman for the Insurance Information Institute.
The insurance companies have not yet specified which specific model years will be affected, nor have they named the affected states.
Holeman said it’s not common for insurers to turn away business. Although insurers weigh several different factors when determining insurance rates, he said it really all boils down to risks.
“And if the risks are too high for your particular situation, that’s going to make insurance more expensive and sometimes a little harder to get,” he said.
On Tuesday, Chicago police issued a community alert to Hyundai and Kia owners after the city saw 11 vehicles from the carmakers stolen in less than 48 hours. It’s the latest to come in a trend that Holeman said has involved instructional videos on social media.
“It kind of started in the Midwest, with some of the social media how-tos, of how to hotwire these cars fairly easily,” he said.
Still, one insurer’s loss is another’s gain. Holeman said insurance is an extremely competitive market and that Kia or Hyundai buyers will find no shortage of offers.
“We generally encourage people to get at least three quotes when they’re shopping for insurance,” Holeman said.
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