UPDATE 2/9/2023: The car manufacturers and insurance companies have not confirmed which states will impacted by the change, however, Progressive and State Farm will not be issuing new policies in some areas for certain Hyundai and Kia vehicles due to increased thefts involving the cars.
Both insurance companies stated they will continue to insure existing customers who own these vehicles and agencies reported only seeing the suspension of new customer applications in some states, and not the dropping/cancellation of existing customers with the affected vehicles.
From 2021 to 2022, thefts of Kia and Hyundai cars increased by 363% and 503%
And by September of 2022, the Insurance Institute for Highway Safety (IIHS) showed Kia and Hyundai now rival muscle cars and luxury SUVs as top targets, a Highway Loss Data Institute analysis of 2021 insurance claims shows.
Among newer models, whole vehicle theft claims were highest for the Dodge Charger SRT Hellcat, relative to its numbers on the road over 2018-22. But among 2015-19 model-year vehicles, theft claims were nearly twice as common for Hyundai and Kia vehicles as a group as for all other manufacturers, according to a recent HLDI report.
Many 2015-19 Hyundai and Kia vehicles lack electronic immobilizers that prevent thieves from simply breaking in and bypassing the ignition. The feature is standard equipment on nearly all vehicles of that vintage made by other manufacturers.
“Our earlier studies show that vehicle theft losses plunged after immobilizers were introduced,” said Moore. “Unfortunately, Hyundai and Kia have lagged behind other automakers in making them standard equipment.”
Immobilizers were already standard on 62 percent of models from other manufacturers in model year 2000. But even in model year 2015, when immobilizers were standard on 96 percent of other manufacturers’ vehicles, they were standard on only 26 percent of Hyundai and Kia vehicle models.
National Insurance Crime Bureau, DES PLAINES, Ill., Jan. 19, 2023 — Thefts of Kia and Hyundai automobiles increased dramatically across the United States in 2022, and insurance industry associations say misuse of social media platforms, like YouTube, by individuals and criminal organizations are contributing to the spike in illegal activity. The National Insurance Crime Bureau, Coalition Against Insurance Fraud, and International Association of Special Investigation Units sent a joint letter to YouTube Chief Executive Officer Susan Wojcicki requesting the social media platform remove “how to” videos that provide detailed instructions for stealing Kia and Hyundai automobiles.
“Everyday consumers are being victimized by criminals using social media platforms to learn their newest illegal tricks and techniques,” said David Glawe, President and CEO of the National Insurance Crime Bureau. “Some platforms are not doing enough to protect innocent victims from unnecessary harm.”
Since these tutorial-type videos started appearing on YouTube, TikTok, and other social media platforms, many police departments across the U.S. have reported drastic increases in Kia and Hyundai thefts.
“Insurance fraud is the crime we all pay for. Posting of videos such as these harms American consumers by increasing auto thefts and driving up higher premiums. It is time for practices such as these to stop. We can all play a part in fighting insurance crime,” said Matthew Smith, Executive Director of the Coalition Against Insurance Fraud.
“Enabling criminals to share the tools and techniques of their trade through posting videos online adversely impacts all consumers,” said Celeste Dodson, President of the International Association of Special Investigation Units. “When a vehicle is stolen, it is often not the end of the crime but the beginning. Vehicle thefts are associated with a multitude of criminal activity, including insurance fraud. The cost of these crimes is then passed on to consumers through higher premiums.”
In the letter to YouTube, industry leaders acknowledge that other social media platforms, including TikTok, need to do more to prevent these types of videos from being shared. However, YouTube has failed to remove many of these videos from its own platform.
