Is my car still insured ? What we know about State Farm

Progressive and State Farm will not issue policies for some Hyundai and Kia vehicles due to a spike in vehicle thefts, insurance companies confirmed this week.

But what about other insurance companies? And what about car owners who own these vehicles but already have insurance?

Why did State Farm eliminate some Kia and Hyundai insurance?

State Farm has temporarily stopped accepting new customer applications for some Hyundai and Kia model years and trim levels in some states, the company said in a statement to his USA TODAY. . The company said it has seen a dramatic increase in theft claims against its vehicles, calling it "a serious problem affecting customers and the auto insurance industry as a whole." The company said it is responsible for managing risk and managing the impact of excessive claims costs on customers.State Farm's suspension of Hyundais and Kias is to protect both the company and its policyholders. The company said it is part of a plan to

How does Progressive deal with Kia and Hyundai cars?

Progressive has seen an increase in theft rates of certain Hyundai and Kia vehicles, the company said in an email. In some areas, vehicles are nearly 20 times more likely to be stolen than others. The company called it an "explosive" increase in thefts and said it was "extremely difficult" to insure a vehicle because its policy is based on the level of risk a theft poses. increase.

Progressive will continue to insure existing customers who own these vehicles but have notified them of the "increased risk". The company also offers policyholders tips on vehicle insurance.

"We will continue to monitor how this issue develops and if theft rates change to more typical levels, we will adjust our prices and acceptance criteria accordingly," the statement said.

How is the vehicle?

The problem with these vehicles is that they are very easy to steal and both automakers are seeing increased theft.

Police believe the rise in thefts from Hyundai and Kiaz is partly due to users' social media tendencies to show how to start a car without a key. The main targets of the theft are Kia cars from 2011 and Hyundai cars from 2015.

Hyundai and Kia's theft claim rate from 2015 to his 2019 was nearly twice as high as any other automaker, according to a Highway Loss Data Institute study of claims from 2021. I understand.

The institute believes this is because companies sell vehicles without electronic immobilizers to prevent theft.A person can break in and bypass the ignition, the study said. place said.

For the 2015 model year, immobilizers were standard equipment on 96% of vehicles from other manufacturers, but only 26% on Hyundai and Kia vehicle models, according to the Institute. A Hyundai spokesperson said all of the company's vehicles produced from November 2021 will come with immobilizers as standard, and the company plans to offer free software updates to drivers from late February.

What model, year of manufacture and city are affected?

Kia said in a statement that affected vehicles include vehicles he built between 2011 and 2021. The affected vehicle has a steel key to "insert and turn the ignition to start".

A Hyundai spokesperson did not specify the affected years. Neither company said it would be affected, but CNN reported that it has stopped offering insurance to cars in Denver and St. Louis.

Aside from State Farm and Progressive, are other insurers withdrawing Hyundai and Kias?

Progressive and State Farm have stopped issuing policies for some Hyundais and Kias, but what about other major insurers such as Geico, Allstate, USAA, Liberty Mutual, Farmers, Travelers, Nationwide and American Family?

Other companies did not immediately respond to requests for comment on the matter.