State Farm, Progressive halt new policies for Kia, Hyundai
(CBS DETROIT) - State Farm and Progressive announced this weekend that due to an increased number of thefts, it would temporarily halt writing new policies for certain makes and models of Kia and Hyundai.
The policy takes effect in Colorado and Missouri, but Kia owners here are worried it may hit Michigan because they have already seen an increase in their insurance rates.
"It's bothering because progressive is a good company and we had State Farm for many many years and Progressive got expensive and then we went to state farm and they got expensive and then we had to go another route," said Donna Kenen, who drives a 2015 Kia Soul.
Kenen said she's been worried about her vehicle getting stolen ever since she became aware of a viral TikTok trend called "Kia Boyz," where thieves exposed how easily the cars can be stolen.
"I lock it, with the keypad, even double lock it even during the day," she said.
State Farm released this statement after CBS News Detroit reached out for comment:
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.
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.
We are monitoring this situation very closely and will adjust our approach as appropriate.
The issue is related to certain makes and models from 2015-2019, including both Kia and Hyundai. Hyundai is the parent company of Kia. The two companies operate independently of each other but do share engineering and technology.
"I understand that it's easy to steal and the dealership has to make it so it's not easy to steal"
Earlier this year, Hyundai released a statement outlining why they thought criminals were targeting their vehicles.
It explained that some models don't come equipped with a device called an immobilizer, which is a computer chip that allows the engine to start. Without an immobilizer, thieves are able to bypass the ignition to start the engine.
Kenen said moving forward she hopes the issue gets resolved because her Kia is the best vehicle she's ever owned.
"I love it I would get another one, so I hope Kia does do something to make it safer," said Kenen.
