Why Hyundai and Kia car owners in US facing rejection from insurers? Know here

  • Several insurance companies have been refusing new policies to Hyundai and Kia car owners.
Certain Hyundai and Kia cars can be stolen easily, due to some vulnerabilities in specific models.
Certain Hyundai and Kia cars can be stolen easily, due to some vulnerabilities in specific models.

Hyundai and Kia car owners in the US seem to face another problem alongside the fear of car theft. As the technical vulnerabilities of Hyundai and Kia cars led to multiple car theft incidents in the US, major car insurance companies have reportedly started refusing coverages rather than risking paying out on a stolen car. Denver7 reports that this denial by insurance companies is surging across the country, especially in those areas where thefts have already been reported.

In 2022, posts on social media demonstrating how easy it can be to steal some Hyundai and Kia models, which were built between 2011 and 2021 became viral. Theft rates for these models skyrocketed across the US after that. To tackle that menace, police departments called for action from both Hyundai vehicle owners and the automakers.

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In two states - Colorado and Missouri, thefts of specific Hyundai and Kia cars have witnessed a massive spike. Now, adding more worry to the owners, the insurance companies have stopped offering coverage in these states, especially for these particular models that are vulnerable.

The report cited one major insurance firm saying that it has restricted offering coverage on new policies in the Denver area on certain models of the South Korean automakers Hyundai and Kia because of the alarming rate by which these vehicles are getting stolen in the Denver area. Another insurance firm reportedly said that it made the decision to stop offering new policies in November last year.

Not only this, many existing policyholders reported dramatic increases in policy costs. Premiums for the existing vehicle insurance policies have gone up substantially. What's worse is that premiums are rising on vehicles that aren't as vulnerable as well.

First Published Date: 30 Jan 2023, 12:23 PM IST
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