Dominating sales in the Vietnamese market in 2022, and in the US, some models of these two giants are being denied insurance, what is the reason?
In Vietnam, Hyundai and Kia are the two car brands with the top sales in the market with 81,582 and 60,729 units sold in 2022, respectively. In the US, the car market is having a confusing situation with some models from these 2 brands: denied insurance.
Progressive and State Farm, two of the largest U.S. auto insurers, are denying coverage in certain cities for certain Hyundai and Kia models. The reason given by the two companies is that some models…are too easy to steal, according to one of the insurance companies and media reports.
Several reports say companies have stopped providing coverage for these vehicles in cities including Denver, Colorado and St. Louis, Missouri. The details of the states involved were not disclosed.
The Highway Loss Data Institute (HLDI) released data in September 2022 stating: Some Hyundai and Kia models from 2015 to 2019 are twice as likely to be stolen as other vehicles around the same time because of the lack of some of the basic automotive anti-theft technology found in most other vehicles during those years.
Specifically, electronic anti-move devices (Electronic Immobilizers) are quite new but very effective car anti-theft devices. The use of this lock is to not allow the car to start the engine without the key. So if the car is stolen, the car will still not move. However, the cars of the two brands lack this part.
According to HLDI, this immobilizer system was standard equipment on 96% of vehicles sold from the production years 2015-2019, but only 26% of Hyundai and Kia vehicles were equipped with the system at that time.
In Wisconsin, theft violations by Hyundai and Kia vehicles have spiked more than 30 times compared to 2019 levels in dollar terms, according to HLDI.
“State Farm has temporarily stopped writing new business contracts in certain states for certain model years, and the cutbacks of Hyundai and Kia vehicles because of theft damage to these vehicles have increased dramatically.” This is a serious issue affecting our customers and the entire auto insurance industry.” Company representative said.
Michael Barry, a spokesman for the Insurance Information Institute, said it was very unusual for auto insurers to simply stop writing new policies for a certain make or model of vehicle.
Hyundai and Kia operate as separate companies in the US. The Hyundai Motor Group owns a large stake in Kia, and many Hyundai and Kia models share much of their engineering.
According to a statement from the automaker, the Immobilizer anti-theft system is now standard on all Kia vehicles. The company says it has developed and tested security software for vehicles that weren’t originally equipped with the unit. Kia says it has begun notifying owners of the software’s availability and is being offered completely free of charge.
Hyundai says it is providing free steering wheel locks to several police departments across the country to give to locals. Hyundai dealers are also installing free security kits on vehicles, the company said.
According to CNN, FT