Erin Walters tried renewing her car insurance with State Farm in July — only to get rejected because she owns a 2019 Hyundai Elantra.
"I was shocked that State Farm was denying me," Walters told WCCO News, noting she’d been with the insurer for five years.
Walters said a representative told her she’d been denied due to the make and model of her vehicle and that it would require a push to start ignition in order to be insured.
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And it’s not just State Farm that’s refusing her coverage. Walters says she’s been trying to get a new policy from a different provider, but Progressive also said it would be unable to offer her a policy — due to “high theft rates.”
State Farm, Progressive have dropped some Hyundai, Kia cars
A State Farm spokesperson told WCCO News that the insurer has stopped accepting new customer applications in some states for certain model years and trim levels of Hyundai and Kia vehicles due to skyrocketing theft losses.
These thefts appeared to be occurring among Kia models newer than 2011 and Hyundai models newer than 2015.
“This is a serious problem impacting our customers and the entire auto insurance industry,” the spokesperson said. "We are monitoring this situation very closely and will adjust our approach as appropriate."
Last year, both State Farm and Progressive first announced it would be dropping certain Hyundai and Kia cars due to the thefts — which may have surged due to a TikTok trend where users demonstrated how to start the cars without using keys.
A Kia spokesperson told CNBC in 2022 that “criminals are seeking vehicles solely equipped with a steel key and ‘turn-to-start’ ignition system,” but recent models are equipped with engine immobilizers, making them more difficult to steal.
A Hyundai spokesperson also told USA Today that engine immobilizers are standard on all Hyundai vehicles produced as of November 2021.
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What are automakers doing about it?
Walters said the vehicle manufacturer should be issuing a recall on these risky models and paying for the required upgrades.
"I would never buy a Hyundai because they’re not stepping up to fixing this situation," she told WCCO News.
Recently, Hyundai and Kia settled a class-action lawsuit after claims the automakers allowed their vehicles to be more vulnerable to theft by failing to install immobilizers in models made from 2011 to 2022.
Both Hyundai and Kia have also been distributing free anti-theft software upgrades and devices for eligible impacted customers.
However, many car owners are continuing to report thefts even after receiving the free updates.
"I just don't understand why everyone isn't up in arms saying, absolutely these cars need to be recalled,” Minneapolis Police Chief Brian O’Hara told MPR News.
Until a better solution is reached, those who are still insured with these makes and models may want to update their policy with comprehensive theft insurance.
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Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.
