Electronic mail after e-mail despatched to five EYEWITNESS NEWS over the weekend chronicles drivers’ struggles to insure sure Kia and Hyundai fashions that lack an engine immobilizer. The anti-theft {hardware} is normal in nearly some other automotive.
In response to a social media submit asking individuals to share their experiences, one viewer wrote that she was denied insurance coverage protection for her Kia by three corporations.
“Had we identified this, we’d have gone with a distinct car!” she continued.
One other respondent stated they tried to change insurers not too long ago, solely to seek out out that the brand new firm refused to insure the Kia Optima they’ve owned since 2015.
“They realized that the chance is so excessive, and so they hadn’t collected sufficient premium to anticipate for this,” defined Mark Kulda, the vice chairman of public affairs for the Insurance coverage Federation of Minnesota. “So due to that, they needed to do one thing that I’ve by no means seen an insurance coverage firm do which is choose a particular make and mannequin and say, ‘We’re not insuring that automotive anymore.’ And plenty of corporations did that.”
5 EYEWITNESS NEWS reached out to a number of insurance coverage corporations. Solely State Farm responded. A spokesperson stated the corporate has “stopped accepting new buyer functions in some states for sure mannequin years and trim ranges of Hyundai and Kia autos as a result of theft losses for these autos have elevated dramatically,” including: “It is a major problem impacting our prospects and the whole auto insurance coverage trade.”
Requested for the names of different main insurers who’ve taken up the same coverage, Kulda stated, “Most of them don’t wish to say, however they’re those that you just’ve heard of. So in case you simply watch the adverts on TV, you’ll hear names. These are many of the ones that say they’re not doing this.”
Some insurance coverage corporations have particularly stopped offering complete protection, which lenders require for automotive house owners who’re nonetheless paying off their loans.
The businesses that stay prepared to jot down full protection insurance coverage insurance policies for the affected vehicles additionally don’t need that publicized, Kulda stated, “as a result of they don’t wish to find yourself being the insurer of final resort that now must tackle all these actually high-risk vehicles.”
Drivers responding to five EYEWITNESS NEWS’ request for remark stated after they did safe a coverage, the premiums have been a lot increased in comparison with premiums related to different equally valued — or much more extremely valued — autos. Others stated their premium drastically elevated upon renewing a coverage on an affected Kia or Hyundai this yr.
One individual stated they went from paying $600 for six months to insure their Hyundai Santa Fe to $1,300.
“So it’s changing into a major problem that’s costing Minnesota drivers actually tens of thousands and thousands of {dollars} in increased insurance coverage premiums,” Kulda stated, referring to the producers’ resolution to not embrace engine immobilizers in roughly 7 million vehicles ranging in mannequin years from about 2011 to 2022.
Insurers’ subsequent resolution to not cowl sure affected autos stands no matter whether or not a driver has gotten the free software program replace each producers rolled out earlier this yr that’s stated to make the vehicles harder to steal, Kulda stated.
“The software program replace is to this point displaying that it doesn’t essentially work on a regular basis,” Kulda stated, citing a number of nationwide stories, like this one from WRC-TV in Washington.
“So from our perspective, that’s not likely profitable. What they should do is definitely set up the engine immobilizers like each different producer has.”
Kia didn’t instantly reply to request for touch upon Sunday.
A spokesperson for Hyundai maintained, “Right now, Hyundai just isn’t conscious of any confirmed failures of the software program,” including, “Engine immobilizers at the moment are normal on all Hyundai autos produced as of November 2021.”
Hyundai has put in the software program replace in 2.5% extra autos since we final inquired three weeks in the past. About 17.5% of roughly 4 million affected Hyundais nationwide now have the replace, the spokesperson wrote on Sunday.
Drivers should purchase engine immobilizers themselves from a 3rd get together after which rent a mechanic to put in it, Kulda added.
“It’s a pair hundred {dollars}. It is likely to be price it for you as a client,” he stated. “And possibly in case you do this and show to the insurance coverage corporations that you just’ve achieved that, you may be capable of get an organization that will offer you protection if you wish to do this.”
After noting the choice, he added, “That’s loads to ask of a client that may very well be prevented if Kia and Hyundai would do the appropriate factor.”
