Why Insurance Companies Aren’t Insuring Kia and Hyundai Models 

Insurance companies have recently stopped renewing policies for specific Kia and Hyundai models due to a significant rise in theft rates. These vehicles have become prime targets for thieves in the past few years because of certain design vulnerabilities.

The affected Kia and Hyundai models don’t have engine immobilizers, a standard feature designed to prevent the engine from starting without the correct key. This absence makes these cars more susceptible to theft, as thieves can easily bypass the ignition system.

Financial Impact on Insurers

The surge in Kia and Hyundai thefts has financial consequences for insurance companies. Higher theft rates lead to more claims, increasing the cost for insurers. As a result, some insurers have decided to stop covering these models to help mitigate their financial risk.

Impact on Vehicle Owners

For owners of these Kia and Hyundai models, this situation presents several challenges:

• Increased insurance premiums—Insurers willing to provide coverage may charge higher premiums to offset theft risks.

• Limited coverage options—Fewer insurers are willing to cover these models, reducing available options.

• Potential financial burden—Owners may face significant out-of-pocket expenses in case of theft or damage to their vehicle.

Protective Measures for Owners

If you own one of the affected Kia or Hyundai models, there are several steps you can take to protect your vehicle and potentially secure insurance coverage:

• Additional security measures—Consider adding steering wheel locks, alarm systems and GPS trackers to deter thieves.

• Stay updated on recalls and retrofits—Keep up to date with any recall or retrofit programs offered by Kia and Hyundai to enhance your vehicle’s security. Both companies offer theft deterrent software updates for vehicles that lack an immobilizer.

By taking these precautions, you can reduce the risk of theft and improve your chances of obtaining insurance coverage for your vehicle.

Contact Us

Contact Xpress Insurance in San Antonio, Texas, for help finding appropriate auto insurance for you Hyundai or Kia vehicle.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.