Insurance Companies Drop Certain Hyundai and Kia Models Due To Theft

Last September, we covered the rise in car thefts during the pandemic, especially among certain Hyundai and Kia vehicles. The report came from the Highway Loss Data Institute (HLDI) and you can read our previous post here.  

Now it seems insurance companies are taking note and two of them, Progressive and State Farm, have stopped writing new insurance policies for select Hyundai and Kia models. State Farm calls the situation temporary and says it won't impact current policyholders.

2015-2019 Hyundai and Kia Models

So what vehicles are we talking about? Certain 2015-2019 Hyundai and Kia vehicles. HDLI says the issue is that unlike most other vehicles from other manufacturers during that time frame, the Hyundai and Kia vehicles with key-turn ignitions don't have electronic immobilizers that prevent thieves from breaking in and bypassing the ignition, making them easier to steal.

 In 2015,  when immobilizers were standard on 96 percent of other manufacturers’ vehicles, HLDI says they were standard on only 26 percent of Hyundai and Kia vehicle models.

“Our earlier studies show that vehicle theft losses plunged after immobilizers were introduced,” said HLDI Senior Vice President Matt Moore. “Unfortunately, Hyundai and Kia have lagged behind other automakers in making them standard equipment.”

HDLI noted the trend in thefts with those particular Hyundai model years following its analysis of 2021 insurance claims that found a rise in car thefts among certain brands during the pandemic.

The issue also made its way to social media in 2021, making the theft problem worse.  

New Federal Lawsuit 

Some Kia and Hyundai owners have filed a class action lawsuits against the sibling automakers. There is also a national class action lawsuit that was filed in California.

But owners aren't the only ones unhappy. 

On January 25, 2023, a new federal lawsuit was filed against Hyundai and Kia in Washington State, by the Seattle City Attorney who alleges the rise in Hyundai and Kia thefts has caused a public safety hazard and burden to taxpayers.  

“Kia and Hyundai chose to cut corners and cut costs at the expense of their customers and the public. As a result, our police force has had to tackle a huge rise in vehicle theft and related problems with already stretched resources. Now Seattle taxpayers must shoulder the burden of the increase in theft,” said City Attorney Ann Davison. “Kia and Hyundai need to take responsibility for the public safety hazard that they created.”

You can read the Seattle City Attorney press release here →

Kia and Hyundai issued separate statements reacting to the lawsuit that were posted by KOMO news:  

Kia response:

“Kia remains concerned that criminal actors are targeting certain Kia cars with a steel key and “turn-to-start” ignition systems. While no car can be made completely theft-proof, Kia continues to make steering wheel locks available to customers through interested local law enforcement agencies, subject to available supply, at no cost to concerned owners of these vehicles.”

Hyundai response:

“Hyundai believes this lawsuit is improper and unnecessary. In response to increasing thefts targeting our vehicles without push-button ignitions and immobilizing anti-theft devices in the United States, Hyundai Motor America has made engine immobilizers standard on all vehicles produced as of November 2021. Additionally, Hyundai has taken a series of actions to deter thefts of affected vehicles, including an upcoming software update scheduled to be available beginning next month and provided at no cost to customers.”

What Hyundai and Kia Are Doing To Address The Issue

You read some of things both automakers are doing in their statements above.  Along with the no-cost software update Hyundai mentioned:

• Kia is working with local police departments to make free steering wheel locks available to affected owners.
• Hyundai offers a security kit for $170 that you can buy from a Hyundai dealer. It does not include any potential installation fees. 

Also, Hyundai and Kia have made immobilizers standard on their newest models, specifically:

• Immobilizers are standard on all Hyundai vehicles built after Nov. 1, 2021
• Immobilizers were installed on all 2022 Kia models and trims either at the beginning of the model year or as a running change.

Photo credit: HLDI/IIHS.