Two of the nation’s largest insurers are refusing to write policies for older Hyundai and Kia models in some parts of the country because of high theft rates.
The move by State Farm and Progressive reflects data released by the Highway Loss Data Institute showing that some products sold by the two automakers between 2015 and 2019 are at least twice as likely to be stolen as similar products marketed by other manufacturers. In some cases, the theft rates are even higher — and the problem actually covers products dating back to the 2011 model year.
“During the past year we’ve seen theft rates for certain Hyundai and Kia vehicles more than triple and in some markets these vehicles are almost 20 times more likely to be stolen than other vehicles,” company spokesperson Jeff Sibel said in an interview with CNN.
YouTube and TikTok offer thieves a how-to
In August 2021, vehicles produced by the two Asian brands represented 77% of all the cars stolen that month in St. Louis, interim public safety director Dan Isom told the St. Louis Post-Dispatch.
The rise in thefts began in 2020, about the time tips on how to steal some of these older Hyundai and Kia vehicles began surfacing on the internet, including how-to videos showing up on YouTube and TikTok. They show how the cars can be started without a key, simply by removing the cover over the keyhole and then using a USB cable to trigger the ignition. The entire process can take as little as 30 seconds once a thief gets inside the vehicle.
The fundamental problem is that the Hyundai and Kia products being targeted use conventional metal keys, rather than remote keyfobs or standard keys that contain encrypted chips. Those digital alternatives prevent thieves from hotwiring a vehicle, especially when paired with a device called an immobilizer.
Immobilizers make it all but impossible to operate a vehicle when it is not started using the correct key or keyfob. Even in vehicles with encrypted keys or fobs, the addition of this technology has been shown to further reduce thefts by as much as 40%, according to industry data.
St. Louis officials threaten legal action
Insurers like State Farm and Progressive aren’t the only ones worried about the surge in vehicle thefts. St. Louis city counselor sent a letter to the two South Korean carmakers threatening legal action if they didn’t step in to help find a solution.
“Kia and Hyundai’s defective vehicles have caused a public safety crisis in the city, endangering the health, safety, and peace of all those who live, work or visit the city,” Hamilton wrote. “Your companies bear the responsibility to mitigate the public nuisance your negligence has created for the city and its residents.”
The two brands, both operated by the Hyundai Motor Group, are promising to take steps to reduce the thefts.
Free software
Kia has begun notifying owners that it has developed new security software for vehicles that don’t have immobilizers. Hyundai plans to offer a similar, free fix starting in the coming weeks. Hyundai also has begun handing out free steering wheel locks. They will be distributed by local police agencies to owners of the vehicles at risk. A Hyundai official also noted that owners can go to a dealer to have a “customized security kit” installed for as little as $170.
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- Source: https://www.thedetroitbureau.com/2023/02/millions-of-older-hyundai-kia-owners-may-face-trouble-getting-car-insurance/
