Kia, Hyundai respond to some insurers refusing to cover cars deemed easy to steal

MADISON, Wis. (WMTV) - Vehicles deemed too easy to steal will no longer be covered by some of the country’s largest auto insurers.

Progressive and State Farm will not be writing new policies on Kia or Hyundai vehicles made between 2015 and 2019. It’s not clear which markets are impacted by the insurance companies’ decision, but earlier reports indicate Denver and Saint Louis are among them.

NBC15 reached out to the two insurance companies on Tuesday to see if the announcement also affects Wisconsin. The companies did not confirm the information.

Sgt. Scott Reitmeier of the Madison Police Department said certain models of these vehicles are still among the most commonly targeted.

“I would say Kias and Hyundais still regularly showing up on our stolen vehicle list,” Sgt. Scott Reitmeier of the Madison Police Department said. “I know, just in speaking with the other jurisdictions around Dane County, that they’ve had a similar trend.

Kia and Hyundai sent separate statements to NBC15 Tuesday. Kia said that they are hopeful the change will be temporary and that they anticipate software upgrades for the most affected vehicles in mid-2023.

“Kia America regrets this decision by certain insurers and its impact on owners and lessees of select Kia vehicles, which we anticipate will be temporary. Engine immobilizers are now standard on all Kia vehicles and have always been standard equipment on Kia vehicles with push-button ignitions,” Kia stated.

Hyundai also said it “regrets this decision by insurers and its impact on select Hyundai vehicle owners and lessees, which we anticipate will be temporary.” The company said owners may bring their vehicles into a local Hyundai dealership for purchase and installation of a customized security kit.

These vehicles are almost twice as likely to be stolen, according to data from the Highway Loss Data Institute. The cars lack immobilizers, meaning they could be started without a key. After viral social media videos explained how to steal these cars with just a USB, theft spiked across the country.

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