A few years ago, easy hacks to steal certain Kia and Hyundai car models started appearing on social media. Subsequently, thefts of these cars became so common that a few larger insurance companies stopped writing new policies for them. This begs the question: Could your insurance company refuse to insure your car because of the model you buy? It is highly unlikely.
A unique situation. When it comes to insurance companies limiting or suspending new policies on cars remember that context is key. In the case of these models, the manufacturers built the cars without including engine disablers—which prevent thieves from starting the car by any method other than having the proper key or fob. This allows thieves to start the engines using only a screwdriver and a USB cord. The passive engine disabling anti-theft feature has come standard on 96% of all vehicles manufactured since 2015. So, almost overnight the models in question became 20 times more likely to be stolen in some areas of the U.S. compared to other cars.
Millions in losses. Major class-action lawsuits been filed against the manufacturers for not including this passive anti-theft feature, and some states’ attorneys general urged the federal government to issue a recall on millions of cars. This is a unique case as far as insurance claims go.
The losses due to thefts of these models in the past year have been massive. However, companies have only limited or stopped issuing new policies on these models in certain cities where the problem has reached epidemic levels. At the time of this writing, all current policies are being honored.
Nationwide these specific models have become so vulnerable to theft that the risk an insurance company takes when it writes new auto insurance policies is exponentially higher than any other model of car. Even so, in most places across the country drivers can get new policies written on these cars.
Who is to blame? Some suspect that the engine disabling device was not included in these models as a cost-saving measure. If so, the result has been catastrophic and has sent massive waves through the car industry. Drivers and legislators must decide if the manufacturers should bear the cost of the damage they’ve done. Be sure to speak with your independent insurance agent about theft risks facing your automobile.
Matt McDonough is PIA Northeast's writer, editor and content curator. Matt joined PIA Northeast in September 2023. Before that, he had been an editor for the online entertainment magazine Collider from 2021-23 as a copy editor for its lists section. Matt entered the world of journalism at his alma mater, SUNY New Paltz, writing and reporting for the college's student run newspaper, The New Paltz Oracle. He graduated from SUNY New Paltz with a Bachelor of Arts in English and a minor in Creative Writing in 2020.
