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Insurance broker says Kia/Hyundai owners who lose policies won't go without coverage


Kia and Hyundai owners who possibly face losing insurance coverage won't be left empty handed after two major car insurers announce plans they won't write policies  for some older Kia and Hyundai models, a Columbus insurance broker says. January 31, 2023 (WSYX){p}{/p}
Kia and Hyundai owners who possibly face losing insurance coverage won't be left empty handed after two major car insurers announce plans they won't write policies for some older Kia and Hyundai models, a Columbus insurance broker says. January 31, 2023 (WSYX)

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Kia and Hyundai owners who may face losing insurance coverage won't be left empty handed after two major car insurers announce plans they won't write policies for some older Kia and Hyundai models, a Columbus insurance broker says.

Both State Farm and Progressive say for the time being they will stop writing policies for some older model Kia and Hyundai models that use steel keys because of the lack of anti-theft technology that's now common in new cars.

"They are saying it's just best that you don't use us," insurance broker Joel Daria with Brightway Insurance said, "if we are not going to offer good quality coverage, use somebody else, that is willing to take on that risk."

Daria says plenty of insurance carriers are willing to take the risk and write customers a policy.

"Those two are gone," he said, "but there are still plenty of companies that have not made adjustments that will take these customers."

Daria tells ABC 6/FOX 28 car owners may not necessarily pay more.

"There are some companies that have made no adjustments to the fact of where you live, or what type of car you have outside general insurance," he said, "it has nothing to do with it being a Kia or a Hyundai."

Daria suggests owners add theft protection like an immobilizer, kill switch, or steering wheel lock, which could possibly reduce your insurance payment.

"Any kind of road block, that you can put in front of a potential thief," Daria said.

Joshua Stevens described how thieves stole his 2016 Kia Soul over the weekend from his Northwest Columbus apartment complex.

"They just ripped the plastic part," he said. "It was gone, just a shock that it was gone."

The stolen car recovered in west Columbus, and Stevens says his insurance company is now taking steps to cover the repairs after crooks busted apart the ignition.

"They actually told me they are starting to turn away Kia and Hyundai customers because this is getting to be an even bigger problem," Stevens said

ABC 6 reached out to State Farm and Progressive Insurance asking what specific car models are affected, if Ohio is impacted by the companies decision to temporarily stop covering some Kia and Hyundai models, and what car owners can do to get coverage and have their policies renewed.

in a statement State Farm told us:

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."

Progressive insurance did not return a request for comment

Daria said if you go shopping for car insurance to pay close attention to the comprehensive coverage and the deductible, to always ask how your coverage will impact your wallet if your car gets stolen, and always compare quotes before signing.


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