Car owners who drive a Hyundai or Kia are likely feeling the impacts of what a national increase in auto theft does to insurance. In some situations, this can cause an increase in rates for those specific vehicles. Extreme cases, like what is happening now for Hyundai and Kia Insurance, result in carriers being closed for business on these makes and even non-renewing current customers. Here we will dive into what is happening from our experience and let you know what can be done about it!
Why are Kia and Hyundai vehicles being targeted for theft?
Chalk up another crazy trend to the social media giant Tik-Tok. A video was posted in 2021 on how to easily override the vehicle manufacturers’ anti-theft technology, which allowed thieves to easily steal vehicles. The vehicles being targeted lacked an immobilizer safety feature that all vehicles are now including during manufacturing. All that was needed to complete the vehicle theft was a screwdriver and a USB cord!
What year, make, and model of vehicles are impacted?
This list is our best interpretation from our carrier partners. It is subject to change. Keep in mind this list may omit vehicles that should be included and may include vehicles that are not part of the issue. There are approximately 8.3 million vehicles affected by this issue according to USA Today.
- 2011-2022 Elantra
- 2013-2014 Genesis Coupe
- 2013-2020 Elantra GT
- 2020-2021 Venue
- 2011-2019 Sonata
- 2012-2017 and 2019-2021 Veloster
- 2013-2018 Santa Fe Sport
- 2013-2022 Santa Fe
- 2018-2022 Accent
- 2011-2022 Tucson
- 2011-2022 Kona
- 2019 Santa Fe XL
- 2020-2021 Palisade
- 2021-2022 K5
- 2011-2022 Sportage
- 2020-2022 Soul
- 2011-2021 Forte
- 2011-2020 Optima
- 2012-2021 Rio
- 2011-2021 Sedona
- 2011-2022 Sorento
- 2011-2022 Seltos
What are carriers like State Farm and others requiring to obtain Kia and Hyundai insurance?
- The vehicle has had the software/anti-theft security kit installed. A copy of the service record for proof is required.
- Addition of a kill switch being installed. Again, proper documentation would be required.
- The vehicle has the push button start. Worth noting – Push button start models are not affected. A photo of the push-button start and the VIN # Plate of the vehicle are required.
- The vehicle can be insured with liability only and no physical damage coverage. The insured cannot add comprehensive and/or collision coverage without one of the steps above being completed.
Recent actions being taken by carriers like State Farm
- We have now seen multiple carriers take recourse against their clients who have a current auto insurance policy insuring a Hyundai and/or Kia.
- We have seen 2 major insurance carriers take this stance! These include State Farm and Liberty Mutual.
While we don’t know all the details of their decisions, the letters that are associated with non-renewal notices indicate that the insured vehicles represent Kias and Hyundais that are part of the original Tik-Tok challenge videos. Regardless, of whether the vehicles have been fixed or not, action is being taken to non-renew the auto insurance policies.
We have not seen any of our insurance carrier partners take this action to date, but that is always subject to change if the loss trends continue on these vehicles.
Not Accepting Clients with These Vehicles
This has been a common practice for most carriers, including the carrier partners we represent. We received memos on 03/15/2023 that advised about changes as it related to the vehicles listed above. Review this State Farm related article.
How do you obtain insurance on these vehicles?
Lucky for you there are still carriers willing to insure these vehicles, but you absolutely have to take the vehicles into the dealership and have the theft deterrent upgrades made. Documentation must be provided that the upgrades were made. Carriers who are willing to provide Hyundai and Kia insurance will require this!
We encourage you to find an independent insurance agency like Hitchings Insurance to help navigate these issues. Hitchings Insurance represents 40+ carriers and knows how to navigate a complicated situation on your behalf. We have the inside information on what carriers are willing to insure these vehicles and who will not. We cut to the chase and offer a cost-effective solution for you.
What other items affect Hyundai and Kia insurance?
If you have one of these vehicles and have followed all the proper steps to get them updated to what is acceptable, you still may have trouble finding an auto insurance policy you can afford. Here are some items to consider.
- Keep a squeaky-clean insurance record. Do not turn in small claims.
- Keep a clear driving record. Speeds, accidents, and other traffic violations can negatively impact your ability to find insurance.
- Bundle your home and auto together. This can even include renters’ policies for anyone who doesn’t own a home. Bundled policies are more attractive to insurance providers.
If you have a driving history or a history of claims, you’re likely not an attractive prospect to insurance carriers. If you have a bad record and own a vehicle on the high theft list, you’re at a bigger disadvantage when finding affordable coverage. The insurance providers are for-profit entities and need to clear a very small margin to stay in business. We know this is a statement people struggle with, but we’re just being honest and transparent.
What does it cost to get Hyundai and Kia insurance?
Great question to wrap up on. It’s almost impossible to answer in this format. Every person has an individual set of underwriting factors that are unique to them. Where you live, marital status, driver age, driving history, specific vehicle details, credit score, claims history, liability limits, deductibles – all of this goes into pricing. Do not compare your friends’ insurance costs to yours. While you may be alike in many areas, you’re certainly not from an insurance rating standpoint, and that’s okay! We’ve seen these vehicles cost between $750 and $3,000 a year, so there are a ton of factors that go into the pricing of these vehicles.
Finding insurance for your Kia or Hyundai with Hitchings Insurance
In summary, auto insurance is a legal requirement for all 50 U.S. States. If you own a Hyundai or Kia, you still need to legally obtain coverage, even if it is a challenge for you to find based on what we talked about above. We’d love to help find the right insurance plan for you, reach out and work with a licensed insurance professional today!