Major insurance companies halt new policies for Kias, Hyundais amid St. Louis-area theft surge

st. LOUIS -- Two major insurers have refused to issue new insurance to some Kia and Hyundai vehicles in the St. Louis area. This is because the theft rate for these cars is still high after rising last year.

Major insurers such as Progressive and State Farm have turned down new Kia and Hyundai contracts, forcing drivers with existing plans to pay ever higher premiums.

"I've been in the industry for over 15 years. It's hard to set a precedent," said Michael Barry, spokesman for the Insurance Information Institute, a consumer education agency. Theft rates for Kia and Hyundai have skyrocketed over the past year. This trend can be seen nationwide. That's because his TikTok video, which went viral, shows how he broke into many 2011 to 2021 Korean models using nothing but a screwdriver and a USB. Drive charging cable. This procedure is available for some models of these cars, since the manufacturer does not install an immobilizer, an electronic anti-theft device.

Kia and Hyundai thefts rose 1,450 percent in the city last year, from 273 to 3,958. The same goes for St. Louis County, where the jump from 140 to 1,621 he represents a 1,157% increase.

Florissant resident Dol Dickerhoff said his last six-month premium on American Family Insurance was $150 higher than when he bought the car new in 2016. He said he started looking for a better deal for Kia Soul in 2019.

“My wife and I have good credit, payment history, six months of premiums paid, no claims, no accidents with this Kia, basically your perfect insurance customer in every way,” he said. I was. "I didn't expect it to be rejected."

Both State Farm and Progressive declined to provide Dickerhoff's article.

When Kia and Hyundai owners in the St. Louis area apply for quotes online, Progressive automatically issues a rejection message.

Due to the make and model of the vehicle and the high theft rate in the area, the company is unable to provide a policy. The same message appears to drivers in other parts of the country where theft rates are particularly high, according to Progressive spokesman Jeff Cibel.

Jim Kirn, owner of his KIRNCO Insurance in St. Louis, which sells progressive insurance, said the company decided to stop offering new coverage in November. State Farm made a similar decision in November, turning down the new policy, according to State Farm salesman Josh Franklin. A State Farm spokeswoman declined to comment.

Other insurers such as Nationwide and Geico have instead opted to increase premiums for drivers of these makes and models. Osvaldo Aguilar, an insurance agent in St. Louis, said insurance premiums for these particular cars are rising at a faster pace than others.

Maplewood resident Jay Zunich said Geico's premium for the 2020 Hyundai Elantra increased by about $200 from about $600 to about $800 when he renewed his contract in December. "My first thought is, 'Holy cow, that's rude,'" he told the Post-Dispatch. "So I start shopping."

He too was turned down by Progressive. His Elantra is a push his starter and can't be stolen like the main starter model, but other companies have estimated his car's price at up to $350 a month.

"It's definitely frustrating," he said.

The Missouri Department of Insurance and Consumer Affairs, which is investigating complaints against insurers, has filed complaints that insurers are refusing to provide coverage even though premiums have increased. It has not, said Catty Lubert, a spokeswoman for the insurance company. Department. "We are aware that insurers are making business decisions about how best to deal with the increased theft of certain makes and models," Mr. Liubert said in an email. “Our department is monitoring the situation and working diligently to ensure that our business decisions comply with Missouri insurance laws and regulations.”

Businesses are "within their right" to refuse new policies, says Barry of the Insurance Information Institute. He said insurers usually want to keep existing customers, but they can legally issue non-renewal notices to policyholders as long as they give about two months' notice. rice field.