Why Are You Being Denied a Car Insurance Policy for Your Vehicle?
Two of the most popular insurance companies have recently disallowed policies for some of the most popular cars. Progressive and State Farm no longer cover these models because design flaws make them easy to start without a key, enabling car thieves to look for an easy target.
Which popular cars are now being denied insurance policies?
Hyundai and Kia vehicles built between 2011 and 2019 have become popular targets recently. These vehicles are easily stolen without using a car, which brought about a new social media trend called “keyless car thefts.” The Kia Soul and Hyundai Santa Fe tend to be the most common targets, but most models from these two brands during the previous decade are sitting targets for car thieves.
Can owners secure a car insurance policy for these vehicles?
Although CNN Business tells us State Farm and Progressive don’t allow vehicles from these two brands during the previous decade to be covered, other insurance companies still cover these vehicles. Both State Farm and Progressive will cover these vehicles, but not in cities where theft of Kia and Hyundai models has become rampant.
Why are these Hyundai and Kia vehicles easy to steal?
The Highway Loss Data Institute (HLDI) reports that Hyundai and Kia models from 2015-2019 are nearly twice as likely to be stolen as other vehicles from the same time period. Most of these vehicles lack the basic auto theft prevention technology that was standard in other vehicles at the time.
Thieves target Hyundai and Kia vehicles because they don’t have electronic immobilizers installed. This electronic item authenticates the key before allowing the vehicle to move.
These immobilizers were standard equipment in 96% of vehicles during the last decade. They were only standard in 26% of Hyundai and Kia vehicles. During the decade in question, Hyundai and Kia models using push-button start systems included electronic immobilizers. Cars and SUVs that didn’t include push-button starting didn’t include this feature, which makes them easier to steal.
How does social media play into the increase in stolen vehicles?
Videos have appeared on social media showing how to start these cars without using a key. Criminals can easily bypass the ignition cylinders and drive off in a Hyundai Santa Fe or Kia Soul. Some models from these brands aren’t equipped with the push-button start feature.
These cars aren’t typically being stolen for resale. The HLDI reports that this theft method seriously damages the ignition system, making it difficult to resell them afterward. Unfortunately, videos on social media show some stolen Hyundai and Kia vehicles driven recklessly and crashed.
Why won’t State Farm and Progressive offer you a car insurance policy?
Owning Hyundai and Kia vehicles from the previous decade has become risky. Insurance companies disallow issuing a car insurance policy for these easily stolen vehicles. These companies must balance the risks and rewards of offering coverage. The spike in thefts of these models to more than 30 times the 2019 rate means there’s too much risk involved for some major insurance companies.
Next, check out why catalytic converter theft is on the rise, or learn more about the social media challenge that’s costing law-abiding citizens millions of dollars in the video below: