Some insurers refusing to cover cars deemed easy to steal
(CNN) - Two major auto insurers, State Farm and Progressive, will not be writing new policies on certain older Kia and Hyundai vehicles because they are so easy to steal.
Affected vehicles include those manufactured by Kia and Hyundai between 2015 and 2019 that don’t have immobilizers, which prevent the vehicle from starting if its key is not present. Most vehicles from other manufacturers with the push button start system include that technology.
Stealing the affected Kia and Hyundai models became a social media trend in 2021, with some users posting instructional videos showing how easy they are to steal.
These models are roughly twice as likely to be stolen as other vehicles of similar age, CNN reports, looking at data from the Highway Loss Data Institute.
It’s not clear which markets are impacted by the insurance companies’ decision, but earlier reports indicate Denver and Saint Louis are among them.
Both State Farm and Progressive say the decision only applies to new policies, and existing policy holders can continue renewing their insurance.
Immobilizers are now standard on all Kia and Hyundai vehicles, according to their respective companies. They are also developing security software for vehicles not originally equipped with an immobilizer, CNN reports.
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