Why Can’t I Find Insurance for My Kia or Hyundai in Denver, CO?
Posted by Risk Management Partners Insurance Agency on
Owning a car is a necessity for many people, providing the freedom to go where you want when you want. Kia and Hyundai, two popular automakers, have been making affordable and reliable vehicles for years. However, recent reports suggest that owning one of these cars might come with an unexpected challenge: getting insurance coverage. Let’s dive into why some Kia and Hyundai vehicles are becoming increasingly difficult to insure.
The Theft Epidemic
Over the last few years, Kia and Hyundai owners have faced a serious and growing danger: vehicle theft. Shocking reports and videos circulated on social media, revealing just how easy it can be to steal certain Kia and Hyundai models produced between 2011 and 2021. These revelations sent theft rates of these Korean cars skyrocketing across the nation, leaving car owners worried and frustrated.
The surge in thefts prompted calls for action from various quarters, including police departments, city officials, and concerned citizens. As the problem escalated, it caught the attention of major insurance companies, who began taking a closer look at the situation.
Insurance Companies Taking Action
Two states hit particularly hard by this spike in thefts are Colorado and Missouri. Recent reports from these states suggest that major insurance companies are now refusing coverage to individuals who own vulnerable Kia or Hyundai models.
For instance, Progressive, a prominent insurance firm, informed Denver7 News that it has “restricted offering coverage on new policies in the Denver area on certain models of the Korean automakers Hyundai and Kia because of the alarming rate by which these vehicles are getting stolen in the Denver area.”
Similarly, in St. Louis, Progressive decided to stop offering new policies in November. Other insurance providers like State Farm made similar decisions, citing the escalating theft risk associated with these vehicles.
Rising Premiums and Policy Costs
The impact doesn’t stop at new policies; even current policyholders are feeling the effects. Many have reported significant increases in their policy costs. Premiums have risen at various insurance companies, and what’s concerning is that, in some cases, these premiums are increasing on vehicles that aren’t as vulnerable to theft.
Many have noticed premium increases as much as or more than 25 percent forcing the decision to shop around. To many’s surprise, the companies willing to provide coverage charge even more than what you’re already paying. Even if your Hyundai or Kia have a push-button start ignition, (making it less susceptible to theft), you still will be seeing the effects of this premium rise.
The growing difficulty in insuring Kia and Hyundai vehicles is a complex issue. On one hand, insurance companies are grappling with a surge in thefts of these cars, which poses a significant financial risk for them. On the other hand, car owners are facing rising costs and, in some cases, outright refusals of coverage.
For consumers, this situation underscores the importance of thoroughly researching insurance options before purchasing a vehicle. It also serves as a reminder that car theft is a serious concern, and taking preventative measures to protect your vehicle, such as installing anti-theft devices or parking in well-lit areas, is essential.
In the end, the challenge of insuring Kia and Hyundai vehicles highlights the dynamic relationship between car manufacturers, insurance companies, and car owners. As the landscape continues to evolve, it’s crucial for all parties involved to adapt to ensure the safety and financial security of everyone on the road.
To learn more about how to ensure you have a better chance at getting a policy approved, read this article here!