In recent months, major insurance companies like State Farm have begun declining new policies for certain Hyundai and Kia vehicles due to a surge in thefts. This move has left many car owners and potential buyers concerned about their insurance options and the safety of their vehicles. Here’s what you need to know about the affected models, the reasons behind this decision, and what steps you can take to protect your vehicle.

The Impact of the Recent Insurance Restrictions

According to a report from CBS affiliate WWL-TV, State Farm has decided not to issue new insurance policies for specific Hyundai and Kia models across several states, including Georgia, Louisiana, Oregon, Washington, and Pennsylvania. The restrictions are reportedly based on the vulnerability of these vehicles to theft, particularly those models that lack advanced anti-theft technology.

List of Affected Hyundai and Kia Models

State Farm has identified the following models as those it will no longer insure for new customers in certain states:

• Hyundai Models (2015-2021): Accent, Elantra, Kona, Santa Fe, Tucson, Veloster
• Kia Models (2015-2021): Forte, Optima, Rio, Sedona, Sorento, Soul, Sportage

The decision primarily affects vehicles that were manufactured without a passive engine immobilizer—a device that prevents the engine from starting unless the correct key fob is detected. While most modern cars include this feature, many base models of Hyundai and Kia vehicles did not, making them more susceptible to theft.

Understanding the Rise in Hyundai and Kia Vehicle Thefts

The rise in thefts of Hyundai and Kia vehicles began in late 2021, following a series of viral social media videos demonstrating how to steal certain models using a flathead screwdriver and a USB cable. This method targeted models without an immobilizer, leading to a spike in theft claims that were nearly twice as high as those for other manufacturers’ vehicles.

Why Are These Models More Vulnerable?

The lack of a passive engine immobilizer in some base models of Hyundai and Kia vehicles makes them easier targets for thieves. An engine immobilizer works by requiring a transponder code from the key fob to start the vehicle. Without this technology, the vehicle is more vulnerable to simple theft techniques, which have been widely shared online.

What Are Hyundai and Kia Doing About It?

In response to the theft wave, both Hyundai and Kia have taken steps to improve the security of their vehicles. These include:

1. Retrofit Kits: Hyundai dealers are offering a retrofit kit for affected vehicles at a cost of $170, plus labor fees, which adds an extra layer of security to prevent theft.
2. Free Steering Wheel Locks: Both companies are distributing free steering wheel locks through local police departments to owners of the affected models.
3. Software Upgrades: Both Hyundai and Kia are developing enhanced security software for vehicles not originally equipped with an immobilizer. They have started notifying owners about the availability of these upgrades at no cost. Hyundai expects to release the software upgrade in the near future, while Kia aims to provide solutions for most affected vehicles by mid-2023.

What Does This Mean for Hyundai and Kia Owners?

If you own one of the affected Hyundai or Kia models, it’s essential to understand how these insurance restrictions could impact you. While State Farm’s decision does not affect existing policyholders, new customers looking to insure these vehicles may face challenges.

Can You Still Get Insurance?

Yes, there is a potential workaround for those who already own or are looking to purchase an affected Hyundai or Kia model. State Farm agents have the discretion to issue a new insurance policy if they can verify the presence of a passive engine immobilizer through an inspection. If your vehicle has a remote entry feature—meaning you can lock and unlock it with a button on the key fob—it likely has an immobilizer, and State Farm may be able to insure it after this inspection.

Steps to Protect Your Hyundai or Kia Vehicle

If you own a Hyundai or Kia vehicle that falls within the affected range, here are some steps you can take to protect your vehicle from theft and ensure that you can secure insurance:

1. Verify the Presence of an Immobilizer: Check your vehicle’s manual or contact a dealer to determine whether your car is equipped with an immobilizer. If it is, schedule an inspection with your insurance provider to verify its presence.
2. Install Additional Security Measures: Consider installing a steering wheel lock, a car alarm, or a GPS tracking system to deter thieves further. These measures can provide an additional layer of security and may also qualify you for discounts on your insurance premium.
3. Stay Updated on Manufacturer Solutions: Keep an eye on updates from Hyundai and Kia regarding the availability of security software upgrades or retrofit kits. These solutions are often provided at no cost and can enhance your vehicle’s security.
4. Choose the Right Insurance Provider: If State Farm or another major insurer is not an option for your vehicle, consider shopping around for other insurance providers that may be willing to offer coverage. Some insurers specialize in high-risk or unique coverage situations and may be more accommodating.

The Broader Implications for Auto Insurance

This situation with Hyundai and Kia highlights a growing concern in the auto insurance industry regarding vehicle security and theft rates. As manufacturers continue to innovate with new security technologies, insurance companies are adjusting their policies to reflect the risks associated with different makes and models.

For consumers, this means staying informed about the security features of their vehicles and understanding how these features impact their insurance options and costs. It also underscores the importance of choosing a vehicle with robust security features to avoid complications with insurance coverage in the future.

Conclusion

The recent restrictions by State Farm on insuring certain Hyundai and Kia models underscore the importance of vehicle security in the eyes of insurance providers. As theft rates for specific models remain high, both manufacturers and consumers must take proactive steps to mitigate risks. Whether through manufacturer-provided solutions like software upgrades or consumer-initiated measures such as additional security devices, it’s essential to stay vigilant and informed.

If you’re a Hyundai or Kia owner affected by these changes or considering purchasing one of these vehicles, take action now to protect your investment and ensure that you have the necessary insurance coverage. For more information on securing the right auto insurance for your needs, contact Samuel Bennett at Island Insurance Group today.

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Samuel Bennett is an insurance expert at Island Insurance Group, offering personalized insurance solutions to meet your unique needs. Contact Samuel Bennett today for a free consultation and to discuss your auto insurance options.