NB: Although the item below is not a "peace" or equivalent item, the
information below could be very important to those on this list who
own,lease, or are considering the affected vehicles.
https://www.yahoo.com/autos/insurance-companies-refusing-cover-hyundais-220000985.html
Jalopnik
Insurance Companies Are Refusing to Cover Hyundais and Kias As Thefts
Continue (Update)
Lawrence Hodge
Tue, January 24, 2023 at 2:00 PM PST
2020 Hyundai Elantra
Hyundai and Kia’s thefts are still happening. What started as a dumb
social media stunt has exploded into a full-blown theft epidemic. The
Korean automaker has done little to help aside from horrible rollout of
a theft deterrent system by Hyundai, and threats of class action suits
haven’t lit a fire to fix the problem. Now, even if people still want to
buy the cars, despite the above, they can’t insure them. The St. Louis
Dispatch reports that residents in the Missouri city area are finding
that major insurance companies won’t cover them if they own a Hyundai or
Kia, and existing policyholders face rising premiums. Update: Hyundai
shared a statement with Jalopnik after publication; see below.
Thefts of Hyundais and Kias in the St. Louis region have exploded since
2022. In the city itself, thefts increased from 273 to 3,958—an increase
of 1,450 percent. Thefts in St. Louis county aren’t far off going from
140 to 1,621—an increase of 1,157 percent. Of course, insurance
companies have taken notice. Residents who own Hyundais and and Kias
that try to get a quote online are hit with denial messages. And its not
from some small potato insurance company either. No, national companies
like State Farm and Progressive are the ones denying coverage. From the
Dispatch:
Progressive automatically issues a denial message: Based on the
vehicle’s make and model, and high theft rates in the area, the company
is unable to offer a policy.
A spokesperson for Progressive told The Dispatch that owners in any
other part of the country that has high theft rates would get the same
denial message.
Owners who already have insurance coverage on Kias and Hyundais are
facing quickly-rising insurance premiums. One resident who owns a 2016
Kia Soul found out his premium with American Family Insurance was $150
more for six months than when they bought it new. This locks owners in a
bind they cant get out of: stuck with high premiums with their existing
insurance, but unable to change insurers because most other companies
will deny them.
Another owner who drives a 2020 Hyundai Elantra saw his premium go up
$200 even though is car is a keyless ignition.
Maplewood resident Jay Zunich said the six-month Geico premium for
his 2020 Hyundai Elantra went up by about $200 when he renewed the
policy in December — from about $600 to $800.
“My first thought is, ‘Holy cow that’s outrageous,’” he told the
Post-Dispatch. “So I start shopping around.”
He, too, was denied by Progressive. Other companies quoted him
rates as high as $350 a month for his car, even though his Elantra is a
push-start and cannot be stolen the way as key-start models.
Despite the Missouri’s Insurance Consumer Affairs Division being aware
of the situation, the division hasn’t taken action against the
companies. “Our department is monitoring the situation and working
diligently to ensure that the business decisions comply with the
Missouri insurance laws and regulations” a spokesperson for the division
said.
While I’m sure it’s frustrating for these owners, the sad part is that
what the insurance companies are doing isn’t illegal due to the risk of
the thefts, which again is insanely high in the area. Every state has
different reasons as to why a company can deny coverage. But if the
reason isn’t forbidden by law, these companies can deny coverage for any
reason, including thefts that are beyond the owner’s control.
Update: After this article was published, Hyundai contacted Jalopnik
with the following statement:
Hyundai Motor America regrets this decision by insurers and its impact
on select Hyundai vehicle owners and lessees, which we anticipate will
be temporary. Engine immobilizers are now standard on all Hyundai
vehicles produced as of November 2021 — and have long been standard
equipment on all Hyundai vehicles with push-button ignitions.
Additionally, Hyundai has taken a series of actions to reduce the claim
frequencies associated with affected vehicles, including an upcoming
software update, which will be available beginning next month and
provided at no cost to customers.
Hyundai is also providing free steering wheel locks, as available, to
select law enforcement agencies across the country for distribution to
local residents who own or lease affected models. Owners may also bring
their vehicles to a local Hyundai dealer for the purchase and
installation of a customized security kit. We apologize for the
inconvenience to affected customers.
