Why is it getting harder to get insurance on Hyundai and Kia

In recent years, there has been a growing trend in the insurance industry of some companies becoming reluctant to insure Hyundai and Kia vehicles. This trend has sparked concern among vehicle owners, dealerships, and manufacturers alike, as well as the general public. In this blog post, we will explore some of the reasons why insurance companies are not wanting to insure these vehicles.

One of the primary reasons that some insurance companies are hesitant to insure Hyundai and Kia vehicles is due to their popularity among car thieves. According to data from the National Insurance Crime Bureau (NICB), several Hyundai and Kia models have been among the most commonly stolen vehicles in recent years. In particular, the Hyundai Sonata and Kia Optima have been among the top 10 most stolen vehicles in the United States. This means that these vehicles are at a higher risk of theft, which in turn results in higher insurance premiums for insurers.

Another factor that contributes to insurance companies' reluctance to insure Hyundai and Kia vehicles is their reputation for having lower-than-average anti-theft features. While both brands have made significant strides in improving safety and reliability in recent years, they still have a long way to go in terms of anti-theft features. In particular, some models lack important features like keyless entry or engine immobilizers, which make them easier for thieves to steal. This means that insurers may be hesitant to insure these vehicles, as they are more likely to be stolen.

Sites like TikTok, Instagram and Facebook have been inundated recently with videos showing just how easy it is to bypass security and steal one of these vehicles. In many cities across the US Hyundai and Kia account for upwards of 40% of vehicle thefts. This staggering number has led some cities like Los Angeles and Denver to issue warning to owners of these vehicles suggesting that the install deterrents like battery disconnects, GPS tracking devices, or steering wheel locks.

Although many in the industry feel Hyundai and Kia have been slow to respond to the issue it does appear that both manufacturers are addressing concerns going forward. In a recent statement from Hyundai Motors they said the following:

"Hyundai Motor America regrets this decision by insurers and its impact on select Hyundai vehicle owners and lessees, which we anticipate will be temporary. Engine immobilizers are now standard on all Hyundai vehicles produced as of November 2021—and have long been standard equipment on all Hyundai vehicles with push-button ignitions. Additionally, Hyundai has taken a series of actions to reduce the claim frequencies associated with affected vehicles, including an upcoming software update, which will be available beginning next month and provided at no cost to customers. Hyundai is also providing free steering wheel locks, as available, to select law enforcement agencies across the country for distribution to local residents who own or lease affected models. Owners may also bring their vehicles to a local Hyundai dealer for the purchase and installation of a customized security kit. We apologize for the inconvenience to affected customers."

For the short term it appears that owners of these vehicles will have difficulty obtaining insurance and higher rates when they are able to get coverage. Hopefully both manufacturers will continue working on a solution that curbs the problem and allows the insurance companies to be comfortable insuring these vehicles again.

If you need help insuring your Hyundai, Kia, or any other vehicles please let us know and we can help. Give us a call today at 972-755-3969 and one of our agents will get to work for you.