State Farm to stop insuring some Kia, Hyundai models due to car theft surge

Auto theft
Auto theft(MGN)
Published: Jan. 30, 2023 at 9:05 PM CST
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BLOOMINGTON (25 News Now and CNN) - State Farm is one of two insurers choosing to stop insuring some older Kia and Hyundai cars because of a dramatic increase in thefts of those models.

CNN reported the affected vehicles include those manufactured by Kia and Hyundai between 2015 and 2019 that don’t have immobilizers, which prevent the vehicle from starting if its key is not present. Most vehicles from other manufacturers with the push button start system include that technology.

Compounding the problem, Stealing the affected Kia and Hyundai models became a social media trend in 2021, with some users posting instructional videos showing how easy they are to steal.

A spokesperson for the Bloomington-based company released a statement to 25 News Monday evening.

“State Farm has temporarily stopped accepting new customer applications in some states for certain model years and trim levels of Hyundai and Kia vehicles because theft losses for these vehicles have increased dramatically. This is a serious problem impacting our customers and the entire auto insurance industry,” said Sevag Sarkissian, from State Farm’s public affairs department.

“We take seriously our responsibility to manage risk and the impact of excess claim costs on all our customers. In this case, it became necessary to take action to protect our policyholders and our business,” Sarkissian said.

“We are monitoring this situation very closely and will adjust our approach as appropriate,” he added.

State Farm competitor Progressive Insurance is also declining policies for certain Kia and Hyundai models.

Both companies say the decision only applies to new policies, and existing policy holders can continue renewing their insurance.