Hyundai and Kia thefts are still happening. What started as stupid social media stunt exploded into a veritable epidemic of theft. The Korean automaker has does little to help other than horrible deployment of one anti-theft system by Hyundai, and threats of class actions didn’t start a fire to solve the problem. Now even if people keep want to to buy the cars, despite the above, they cannot insure them. The dispatch from Saint-Louis reports that the inhabitants of Missouri City Neighborhood find that major insurance companies won’t cover them if they own a Hyundai or Kia, and existing policyholders face rising premiums.
Hyundai and Kia Flights in the St. Louis Area exploded since 2022. In the city itself, thefts have gone from 273 to 3,958—a raise of 1450%. Flights in St. Louis County are not far off from 140 to 1,621—a increase of 1,157%. Of course, Iinsurance companies have taken cognizance. Residents who own Hyundais and Kias trying to get a quote online are hit with rejection messages. And it’s not from a small potato insurance company either. No, notnational companies like State Farm and Progressive are the ones denial of coverage. From the dispatch:
Progressive automatically issues a denial message: Due to the make and model of the vehicle and high theft rates in the area, the company is unable to offer a policy.
A Progressive spokesperson said the dispatch that owners in any other part of the country with a high theft rate would receive the same denial message.
Owners who already have insurance coverage on Kias and Hyundais are facing a rapid increase insurance premiums. A resident who owns a 2016 Kia Soul found his premium with American Family Insurance was $150 more for six months than when they bshould it again. This locks homeowners into a bind they can’t get out of: stuck with high premiums with their existing insurancebut unable to change insurer because most other companies will refuse them.
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Another owner who drives a 2020 Hyundai Elantra saw his premium increase by $200 even though his car is keyless ignition.
Maplewood resident Jay Zunich said the six-month Geico premium for his 2020 Hyundai Elantra increased by about $200 when he renewed the policy in December, from about $600 to $800.
“My first thought is, ‘Holy cow this is outrageous,'” he told the Post-Dispatch. “So I start shopping.”
He too was turned down by Progressive. Other companies have offered him rates as high as $350 a month for his car, even though his Elantra is push-start and can’t be stolen like key-start models.
Although the Missouri Consumer Insurance Division is aware of the situation, the division has not taken action against the companies. “Our department is monitoring the situation and working diligently to ensure business decisions comply with Missouri insurance laws and regulations,” a division spokesperson said.
While I’m sures frustrating for these owners, the sad thing is that what the insurance companies are doing is nott illegal because of the risk flights, which is again incredibly high in the region. Each state has different reasons why a company may deny coverage. But if the reason is ‘t prohibited by law, these companiess may refuse coverage for any reason, including theft beyond the owner’s control.