In a surprising turn of events, Erin Walters, a Minnesota woman, found herself in a predicament when she tried to renew her car insurance with State Farm in July. Walters, who had been a loyal customer for five years, was shocked to learn that her 2019 Hyundai Elantra was being denied coverage by the insurer. The reason? The make and model of her vehicle required a push-to-start ignition, which State Farm deemed too risky to insure.
But it wasn’t just State Farm that was refusing Walters coverage. When she tried to obtain a new policy from Progressive, she was met with the same response. Progressive cited „high theft rates“ as the reason for denying her coverage, leaving Walters in a difficult situation with limited options for insurance.
The issue at hand seems to stem from a larger problem affecting certain Hyundai and Kia vehicles. A State Farm spokesperson revealed that the insurer had stopped accepting new customer applications for specific model years and trim levels of Hyundai and Kia cars due to skyrocketing theft losses. The thefts were particularly prevalent among Kia models newer than 2011 and Hyundai models newer than 2015.
This alarming trend prompted both State Farm and Progressive to take action last year by dropping certain Hyundai and Kia cars from their coverage options. The surge in thefts may have been fueled by a TikTok trend where users demonstrated how to start these cars without using keys, making them vulnerable to theft.
In response to the escalating issue, Hyundai and Kia have taken steps to address the vulnerability of their vehicles. Both automakers have settled a class-action lawsuit that accused them of failing to install immobilizers in models made from 2011 to 2022, making them more susceptible to theft. As part of the settlement, Hyundai and Kia have been providing free anti-theft software upgrades and devices to eligible impacted customers.
Despite these efforts, car owners continue to report thefts even after receiving the free updates, raising concerns about the effectiveness of the measures taken. Minneapolis Police Chief Brian O’Hara expressed frustration over the situation, calling for a recall of the risky models to ensure the safety of consumers.
In the meantime, individuals who own these makes and models may want to consider updating their insurance policy with comprehensive theft coverage to protect themselves against potential losses. As the auto insurance industry grapples with this serious problem, it is crucial for both insurers and automakers to work together to find a lasting solution that prioritizes the safety and security of consumers.