Insurance companies drop owners of some Kia, Hyundai vehicles

Hyundai and Kia.
Hyundai and Kia.(MGN)
Published: Jan. 31, 2023 at 9:12 PM CST
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ROCKFORD, Ill. (WIFR) - Owners of some older Hyundai and Kia vehicles may soon find it difficult to find insurance.

Progressive and State Farm have already announced that that they will stop covering some of the manufacturers’ vehicles built between 2011 and 2021 because they are easy to steal and lack anti-theft devices.

One local insurance broker says he is now closely monitoring the situation because along with Progressive and State Farm, a number of companies he represents are following suit and are dropping policyholders who drive Kias and Hyundais.

“We have some companies that are flat-out banning all Kias and Hyundais,” said Dan Block president of Rockford-based Insurance King. “It doesn’t matter what model.”

Block says he also represents companies who are restricting the number of new policies they issue on both Korean brands.

“They’re not going to allow new business,” Block said. “But if you have it existing, they will allow it at this time.”

It isn’t clear what the future holds for insurance agents like Block when it comes to their ability to write policies on the affected brands. He says it is likely going to be difficult for drivers of Kias and Hyundais that must be started with a key. Thieves, he said, can start those cars with an ordinary USB plug once they break open the steering column, a trend that has grown on social media over the last year. There is a hope though, at least for now.

“I have some other companies that have come out and said, if [drivers] install an ant-theft device, if they used a Club or some other kind of deterrent, they’d consider insuring them. But it’s pending underwriting approval,” Block said.

Meanwhile, local dealers say the situation has not yet affected the used car market in the Rockford area. But, like Block, they are monitoring things and hope factory recalls, or other viable solutions, will alleviate further issues.