A Minnesota woman came forward to complain how several car insurance companies have refused to provide her coverage, citing her car's specific make and model as the reason.
Both State Farm and Progressive denied coverage for Erin Walters's 2019 blue Hyundai due to high theft rates associated with the model. This model's lack of an immobilisation system makes it a prime target for thieves.
A loyal State Farm customer of five years, Walters was surprised to be denied renewal for her policy last week. "I was shocked that State Farm was denying me," she told WCCO News.
Minnesota Woman Denied Insurance
Disappointed by this revelation, Walters regretted purchasing the Hyundai and called on the company to initiate a recall to equip these vehicles with anti-theft software.
It's worth noting that in 2017, the South Korean government mandated a recall of 240,000 Hyundai and Kia cars due to various faulty parts identified by a Hyundai employee, including vacuum pipes, fuel hoses, and parking brake light issues.
In a statement to WCCO's Ubah Ali, State Farm explained the rationale behind denying coverage for specific Hyundai and Kia models, including Walters' car.
In response to a significant rise in theft claims, State Farm has temporarily halted accepting new applications for certain Hyundai and Kia models in some states. These models include specific trim levels and year ranges. A spokesperson explained that this decision seriously impacts customers and the broader 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," the statement added.
Walters finally purchased her first new car in 30 years, but she now finds herself in a frustrating situation. Due to her lack of insurance, driving the car is currently impossible without violating the law.
Nearly 10 million Kia and Hyundai vehicles sold in the US between 2011 and 2021 lacked essential immobiliser technology, making them disturbingly easy to steal with just a screwdriver and USB cable. Gaining access is alarmingly simple.
Thieves only need to pry off the plastic steering column cover to expose the keyed ignition barrel, which can be easily removed. After exposing the barrel, the thief can exploit a vulnerability: the car can be started by rotating a square tab with the end of a USB cable—no data transfer is involved.
The absence of an immobiliser renders these vehicles defenceless – once thieves bypass the flimsy steering column cover and exploit the ignition system's vulnerability with a USB cable, nothing prevents the car from starting.
The Viral 'Kia Boys' Trend
This critical security flaw has fueled the spread of viral videos showcasing teenagers effortlessly stealing these cars. The ease of theft has fueled a dangerous trend – the rise of the so-called "Kia Boys." These inexperienced and thrill-seeking individuals often steal these cars, leading to tragic consequences.
In a chilling example from 2022, four teenagers, including a 14-year-old mother, lost their lives after crashing a stolen Kia Sportage in Buffalo, New York. Walters now faces a daunting task: dedicating at least four hours daily to finding an insurance company willing to cover her car.
"I've never cried over a car before," she said. Progressive, like State Farm, denied Walters' request for insurance coverage due to her car's make and model. "Thank you for shopping with Progressive - based on vehicle information, we are unable to offer you a policy due to high theft rates," the company told her when she applied.
State Farm has deemed 105 Kia and Hyundai models uninsurable due to their carjacking vulnerability. Kia Motors, however, has prioritised incorporating sustainable materials like natural oils, recycled plastics, and vegan leather into their vehicles. It remains to be seen if they will shift focus to address this critical security issue.
