Why Some Georgia Insurance Companies Are Not Insuring Certain Kia and Hyundai Models

Several insurance companies have started to opt out of providing policies for specific models of Kia and Hyundai vehicles, leaving many car owners puzzled and concerned about their ability to secure necessary insurance coverage.

The Surge in Vehicle Thefts

The primary reason behind the insurance pullback from certain Kia and Hyundai models stems from an alarming increase in thefts of these vehicles across Georgia and the United States. This surge in thefts can be traced back to a specific security flaw in these cars, primarily 2011 to 2021 models that are not equipped with push-button ignitions and immobilizing anti-theft devices.

The ignition system of these vehicles can be easily manipulated with simple tools like a screwdriver and a USB cable. This method of theft became widely known through social media, mainly via videos on platforms like TikTok, where people shared how to start these vehicles without a key, popularizing the so-called “Kia Challenge.”

Impact on Insurance Companies

The significant rise in theft incidents has posed considerable risks for insurance companies. When a particular vehicle model is at elevated risk of being stolen, the probability of theft claims increases, which raises the cost of insuring these vehicles. Insurance companies assess risk based on several factors, including the likelihood of theft, and adjust their policies accordingly to avoid substantial financial losses.

In Georgia, where these thefts have become increasingly common, some insurers have found the risk of insuring these vulnerable Kia and Hyundai models too high to manage affordably. As a result, they have either decided to stop insuring these models altogether or have increased premiums to an extent that makes these policies less accessible to the average car owner.

Consequences for Car Owners

This situation puts car owners in a difficult position. Those who own the affected models may find their insurance premiums skyrocketing or struggle to find any insurer willing to cover their vehicle at a reasonable rate. This can lead to increased costs of ownership or, in worse cases, leave owners without any insurance protection against theft, damage or accidents.

The Response From Kia and Hyundai

Both companies have started to provide their customers with software updates designed to enhance the security of the affected models. Additionally, they have been distributing steering wheel locks to law enforcement agencies to distribute to vehicle owners to help prevent thefts.

Despite these measures, implementing fixes and restoring confidence among insurance companies and car owners may take some time. This gradual process affects the immediate insurability and ownership costs of these vehicles.

Contact Us

Contact A Advantage Insurance Agency in Douglasville, Georgia, to learn how to insure your Kia or Hyundai vehicle properly. Our agents can help you compare quotes from reputable insurers.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.