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Insurance Companies Refuse to Cover Hyundais and Kias: What it Means for Business Owners

Business owners who have fleet vehicles that need to be insured should take note of this story from Jalopnik:

  • Thefts of Hyundais and Kias in St. Louis, Missouri, have risen 1,450 percent in the last year, causing major insurance companies to outright deny owners insurance.
  • National companies like State Farm and Progressive are denying coverage to residents who own Hyundais and Kias, and existing policyholders are facing rising premiums.
  • Hyundai has done little to help, aside from a horrible rollout of a theft deterrent system and threats of class action suits.
  • Insurance companies are able to deny coverage for any reason, including thefts that are beyond the owner’s control, as long as the reason is not forbidden by law.
  • Hyundai Motor America regrets the decision by insurers and its impact on select Hyundai vehicle owners and lessees and anticipate it will be temporary.
Thefts of Hyundais and Kias in St. Louis, Missouri, have skyrocketed in the last year, with a 1,450 percent increase in thefts in the city alone. As a result, major insurance companies are refusing to cover owners of these vehicles, leaving them without the protection they need.

Theft Epidemic: A Growing Problem for Hyundai and Kia Owners

The thefts of Hyundais and Kias in the St. Louis region have exploded since 2022. In the city itself, thefts increased from 273 to 3,958 - an increase of 1,450 percent. Thefts in St. Louis County aren't far behind, going from 140 to 1,621 - an increase of 1,157 percent. With such a high rate of thefts in the area, it's no surprise that insurance companies have taken notice.

Insurance Companies Deny Coverage to Hyundai and Kia Owners

Residents who own Hyundais and Kias that try to get a quote online are hit with denial messages. National companies like State Farm and Progressive are among the insurance companies that are denying coverage to residents in the St. Louis area. These denials are not limited to small insurance companies; even well-established companies are refusing to cover these vehicles.

Rising Premiums for Existing Policyholders

Owners who already have insurance coverage on Kias and Hyundais are facing quickly-rising insurance premiums. One resident who owns a 2016 Kia Soul found out his premium with American Family Insurance was $150 more for six months than when they bought it new. This locks owners in a bind they can't get out of: stuck with high premiums with their existing insurance, but unable to change insurers because most other companies will deny them.

Hyundai and Kia Take No Action to Address the Problem

Hyundai and Kia have done little to help, aside from a horrible rollout of a theft deterrent system and threats of class action suits. Despite the Missouri’s Insurance Consumer Affairs Division being aware of the situation, the division hasn’t taken action against the companies. “Our department is monitoring the situation and working diligently to ensure that the business decisions comply with the Missouri insurance laws and regulations” a spokesperson for the division said.

The Impact on Business Insurance

The high rate of thefts in the St. Louis area is having a significant impact on business insurance for Hyundai and Kia owners. With insurance companies denying coverage and raising premiums for existing policyholders, these business owners are finding it increasingly difficult to protect their assets.

Hyundai Motor America regrets this decision by insurers and its impact on select Hyundai vehicle owners and lessees, which we anticipate will be temporary. Engine immobilizers are now standard on all Hyundai vehicles produced as of November 2021.

The situation in St. Louis highlights the importance of having comprehensive business insurance coverage. With the high rate of thefts in the area, it's essential for Hyundai and Kia owners to work closely with their insurance companies to ensure they have the protection they need.

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