Crime and Safety

State Farm, Progressive will no longer insure certain models after bursts of theft

Thanks to social media and urban crime, some auto insurers are refusing to insure certain car models that are too easy to steal.

Progressive and State Farm have confirmed that they are not writing the rules for certain Hyundai and Kia models produced between 2015 and 2019 because they lack the anti-theft devices common in the auto industry during those years. CNN Business.

According to the Accident Data Institute, an insurance industry research group, these car models are more than twice as likely to stolen than others because they don’t have conventional anti-theft devices, according to CNN Business.

One important device is the immobilizer, which is controlled by a chip in the car and another on the ignition key, which allows the car to operate when the key is turned. The car won’t start without the chips. HDLI notes that many of the target models do not have these immobilizers, according to CNN Business.

While 96 percent of other automakers included anti-theft devices in their vehicles, only 26 percent of Hyundai and Kias vehicles in those years had them, according to CNN Business.

Due to the lack of security devices in 2021, a trend has emerged on social media of car thieves posting videos demonstrating how easy it is to steal these cars. trend along with growth car theft in many major US cities, Hyundai and Kias are accused of stealing these vehicles, which have increased more than 30 times the dollar level since 2019.

Even how price auto insurance continues to grow, some insurance companies have acknowledged that they will stop covering these models.

“State Farm has temporarily suspended new order records in certain states for certain model years and trim levels of Hyundai and Kia vehicles as theft losses for these vehicles have skyrocketed,” CNN said in a statement. “This is a major issue affecting our customers and the entire auto insurance industry.”

Progressive spokesman Jeff Siebel also noted that the company is retreating.

Should car companies be liable for theft?

“Last year, we saw the number of thefts of some Hyundai and Kia vehicles more than triple, and in some markets, these vehicles are nearly 20 times more likely to be stolen than other vehicles,” he told CNN in an email.

“Given that we rate our policies based on the level of risk they pose, this explosion in theft in many cases makes these vehicles extremely difficult for us to insure. In response, we have increased our rates in some geographies and restricted the sale of new insurance policies for some of these models.”

According to a CNN Business report, neither company has said it will revoke policies already issued for these models.

Hyundai, which was surrounded by reviews, and Kia operate as separate companies in the US, but Hyundai Motor Group owns a significant portion of Kia. In addition, engineering is divided between companies. Since 2019, companies have made immobilizers standard on all models.

Both automakers are trying to fight theft by offering free upgrades and security kits to owners in the US, according to CNN Business. Hyundai is also offering free steering wheel locks to US police departments to give to car owners to try to prevent theft.

However, the problem is likely to affect the value of these models in the used car market, especially if insurance companies persist in refusing to insure them.

In most states, you cannot drive a vehicle unless you show proof of insurance.

Meanwhile, car theft is a growing problem in America’s major cities, whether owners own Hyundais or Kias.

It’s so bad in Chicago that groups of young people 10 years joins a gang of car thieves, according to police reports cited Chicago Sun-Times in the 2020 report. And in August, Fox News reported that Chicago already had six times as many car thefts as it did in 2014.

But it’s not just Chicago. CNN noted a January 2022 report states that since the start of the coronavirus pandemic, many major cities have seen a massive increase in car thefts. Indeed, many may recall a horrific incident in 2021 when two teenage girls were charged with felony after the brutal murder of a 66-year-old car owner in Washington, D.C. while stealing his car.

Car theft is already becoming a serious enough problem, although car companies don’t make it easy for thieves. The question arises: can something else be done to make Hyundai and Kia solve this problem?

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