State Farm Progressive dropping some Hyundai Kia cars: Due to an increase in the number of stolen Hyundai and Kia vehicles, Progressive and State Farm have confirmed this week that they will no longer issue insurance policies.
CNN received confirmation from both Progressive and State Farm that they no longer write policies for some Hyundai and Kia models produced between 2015 and 2019.
The Insurance Institute for Highway Safety (IHHS) and the Highway Loss Data Institute (HLDI) reported in September 2022 that vehicle theft claims for Hyundai and Kia vehicles from 2015 to 2019 were nearly twice as prevalent as those for the Dodge Charger SRT Hellcat.
According to the report, HLDI senior vice president Matt Moore, “car theft spiked during the pandemic.” According to these figures, some vehicles may be targeted due to their speed or high value, while others may be targeted due to their ease of theft.
The report also said that the Hyundai and Kia cars that were stolen don’t have electronic mobilizers, which can stop a thief from just breaking into the car and going around the ignition. Moore asserted that the number of Kia and Hyundai vehicle thefts “plunged” once immobilizers were added to the vehicles.
State Farm Progressive dropping some Hyundai Kia cars: Claims
The report also notes that immobilizers were standard in 26 percent of Kia and Hyundai vehicle models in 2015, but standard in 96 percent of all other manufacturers.
State Farm and Progressive did not immediately respond to inquiries seeking additional information about the claims.
In a statement to CNN, State Farm confirmed the temporary halting of writing insurance policies in some states for some Kia and Hyundai model years and trim levels.
Progressive also confirmed with CNN that it was making changes. In some areas, Progressive is increasing rates and limiting the sale of new insurance policies for those who have Kias and Hyundais that fit within the slot of vehicles that are at substantial risk.
Kia and Hyundai vehicle thefts are up as much as 300% over the past two years in some cities.
Videos posted on social media show people how to start the vehicles without keys, with the tip of a phone charger or USB cable, and the trend has prompted juveniles across the US to try to steal Kia and Hyundai vehicles to go for a joyride.
