Two of America’s largest automobile insurers, State Farm and Progressive Corp PGR, are refusing to cowl choose fashions of a pair of South Korean automakers in sure U.S. cities. The reason being that they are too straightforward to steal.

In accordance with knowledge from the Freeway Loss Information Institute (HLDI), sure automobiles produced by Hyundai Motor Firm GDR HYMTF and Kia Corp from 2015-2019 are roughly twice as prone to be stolen as in comparison with different automobiles from the identical manufacturing years. 

The reason being that a lot of them are missing primary auto theft prevention know-how present in most different automobiles produced throughout these years, in keeping with the HLDI report.

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The institute says some Hyundai and Kia fashions constructed between 2015 and 2019 lack digital immobilizers that forestall thieves from merely breaking in and bypassing the ignition. The immobilizer know-how prevents a automobile engine from beginning until the licensed key’s used.

In accordance with the Los Angeles Police Division, Kia, and Hyundai automobiles accounted for nearly 20% of car thefts in 2022, up from 13% in 2021 in Los Angeles. Equally, the Chicago Police Division has reported a 767% improve in Hyundai and Kia automobile thefts in 2022 in comparison with the earlier 12 months attributable to a TikTok problem to steal the automobiles.

CNN has reported that each State Farm and Progressive are actually avoiding protection of these automobiles in sure cities, together with Denver and St. Louis.

“State Farm has briefly stopped writing new enterprise in some states for sure mannequin years and trim ranges of Hyundai and Kia automobiles as a result of theft losses for these automobiles have elevated dramatically. This can be a significant issue impacting our prospects and the auto insurance coverage business,” CNN quoted State Agency officers saying. 

“Throughout the previous 12 months, we have seen theft charges for sure Hyundai and Kia automobiles greater than triple, and in some markets, these automobiles are virtually 20 instances extra prone to be stolen than different automobiles,” CNN quoted Progressive spokesman Jeff Sibel as saying. 

“Provided that we worth our insurance policies primarily based on the extent of threat they characterize, this explosive improve in thefts usually makes these automobiles extraordinarily difficult for us to insure. In response, in some geographic areas, now we have elevated our charges and restricted our sale of recent insurance coverage insurance policies on a few of these fashions,” Sibel added. 

In accordance with a CNBC report, viral movies on the social media service TikTok depict younger teenagers stealing and driving Kia and Hyundai automobiles. The TikTok problem, which makes use of the hashtag “Kia Boys,” reportedly has over 33 million views.

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