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CNN
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Progressive and State Farm, two of America’s largest auto insurers, are refusing to put in writing insurance policies in sure cities for some older Hyundai and Kia fashions which have been deemed too simple to steal, in accordance with the businesses.
A number of studies say the businesses have stopped providing insurance coverage on these autos in cities that embody Denver, Colorado and St. Louis, Missouri. The insurance coverage corporations didn’t inform CNN which cities or states have been concerned.
The Freeway Loss Knowledge Institute launched insurance claims data last September that confirmed what numerous social media accounts had been saying: Some 2015 via 2019 Hyundai and Kia fashions are roughly twice as prone to be stolen as different autos of comparable age, as a result of a lot of them lack among the fundamental auto theft prevention expertise included in most different autos in these years, in accordance with the HLDI.
Particularly, these SUVs and automobiles don’t have digital immobilizers, which depend on a pc chip within the automotive and one other in the important thing that talk to substantiate that the important thing actually belongs to that car. With out the appropriate key, an immobilizer ought to just do that – cease the automotive from shifting.
Immobilizers have been customary tools on 96% of autos bought for the 2015-2019 mannequin years, in accordance the HLDI, however solely 26% of Hyundais and Kias had them at the moment. Automobiles which have push-button begin programs, slightly than counting on steel keys that have to be inserted and turned, have immobilizers, however not all fashions with turn-key ignitions do.
Stealing these autos grew to become a social media development in 2021, in accordance with HLDI, as car thieves began posting videos of their thefts and joyrides and even movies explaining methods to steal the automobiles. In Wisconsin, the place the crimes first grew to become prevalent, theft claims of Hyundais and Kias spiked to greater than 30 occasions 2019 ranges in greenback phrases.
“State Farm has briefly stopped writing new enterprise in some states for sure mannequin years and trim ranges of Hyundai and Kia autos as a result of theft losses for these autos have elevated dramatically,” the insurer stated in a press release offered to CNN. “This can be a major problem impacting our clients and your complete auto insurance coverage business.”
Progressive can also be slicing again on insuring these automobiles in some markets, spokesman Jeff Sibel stated in an emailed assertion.
“In the course of the previous yr we’ve seen theft charges for sure Hyundai and Kia autos greater than triple and in some markets these autos are virtually 20 occasions extra prone to be stolen than different autos,” he wrote. “Provided that we value our insurance policies primarily based on the extent of threat they signify, this explosive improve in thefts in lots of instances makes these autos extraordinarily difficult for us to insure. In response, in some geographic areas we now have elevated our charges and restricted our sale of latest insurance coverage insurance policies on a few of these fashions.”
Progressive continues to insure those that have already got insurance policies with the corporate, he stated. Progressive can also be offering them with recommendation on methods to shield their autos from theft.
Michael Barry, a spokesman for the Insurance coverage Info Institute, stated it was very uncommon for auto insurers to easily cease writing new insurance policies on a given make or mannequin of car.
“They typically wish to increase their market share relying on the place they’re doing enterprise,” he stated.
Hyundai and Kia function as separate corporations in the US, however Hyundai Motor Group owns a big stake in Kia and numerous Hyundai and Kia fashions share a lot of their engineering.
Engine immobilizers are actually customary on all Kia autos, in accordance with a press release by the automaker, and the corporate says it has been creating and testing safety software program for autos not initially outfitted with an immobilizer. Kia stated it has begun notifying homeowners of the supply of this software program, which is being offered at no cost.
Hyundai stated it’s offering free steering wheel locks to some police departments across the nation to provide native residents who’ve simply stolen Hyundai fashions. Hyundai sellers are additionally putting in free safety kits for the autos, the corporate stated.
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