Following a surge of thefts involving certain Kia and Hyundai car models, some insurance companies may not continue to cover these cars. Reports are circulating that major car insurance providers plan to remove Hyundai and Kia vehicles from their plans due to thefts.
For car owners in Finger Lakes region, the possibility that their insurance companies may not cover their Kia or Hyundai vehicles has raised concerns. There is no question that the issue of stolen Kias and Hyundais is a nationwide problem, with older models lacking push-button ignitions becoming a popular target among thieves. According to the Monroe County Sheriff’s Office, more than 400 of these vehicles have been stolen since October.
Insurance companies have found that the thefts have been costly, with the frequency of claims increasing almost 80 percent by mid-2021. As a result, two major insurance carriers, State Farm and Progressive, have taken action by temporarily halting new policy applications for certain Hyundai and Kia models in some states. Existing customers will continue to be covered, but these changes only apply to new policies.
Michael Barry, a spokesperson for the insurance information institute, confirmed that no other insurance providers are taking similar actions. He noted that the publicly traded auto insurers have disclosed economic headwinds for them, which is causing the temporary change in policy.
Hyundai and Kia have developed theft deterrent software for affected vehicles, which will be provided free of charge starting later this month. Both companies are monitoring the situation and may adjust their criteria accordingly.
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