LAFAYETTE, La. (KLFY) State Farm has temporarily stopped accepting new customer applications in some states for specific models of Hyundai and Kia vehicles.
Antonia Antoine of Louisiana owns a 2019 Kia Optima, and says she was previously insured by State Farm.
“The monthly bill went up to under $220. It was already $130. So, if I do the math correctly, that’s over $1,500, and it’s a six-month premium that I just can’t afford.”
Antoine said both she and her sister, who also owns a Kia, were getting a lot of pushbacks from agents and says they were told:
“We can’t insure your vehicle, and if we do insure your vehicle, it’s such a high risk on the road that we have to up your premiums for parts and anything of that nature.”
State Farm’s corporate office has released a statement in response to the insurance pause.
“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.”
James Bell, the head of Corporate Communications for Kia America, said Kia owners with used models of 2011-2021 using a steel key rather than a push to start should be aware.
“Kia America regrets this decision by certain insurers and its impact on owners and lessees of select Kia vehicles, which we anticipate will be temporary. Engine immobilizers are now standard on all Kia vehicles and have always been standard equipment on Kia vehicles with push-button ignitions. Additionally, Kia has taken a series of actions to reduce the claim frequencies associated with affected vehicles. Kia has developed enhanced security software for vehicles not originally equipped with an immobilizer and is notifying owners and processing this software upgrade at no cost. Kia anticipates that it will make this software upgrade available for most affected vehicles by mid-2023. Kia is also continuing to provide free steering wheel locks, as available, to interested law enforcement agencies across the country for distribution to local residents who own, or lease affected models.”
Antoine said she thinks it’s very silly that it’s specifically targeting Kia and Hyundai.
“I think Kia and Hyundai specifically do need to tackle down, but as consumers, you know, we’re penalized for purchasing a car. I don’t think that effectively helps consumers in this economy.”
NHTSA urges owners of these vehicles to contact Hyundai (toll-free at 800-633-5151) for information on the FREE update.
Kia owners with questions may contact our Customer Care team directly at 1-800-333-4542 (4Kia). In addition, a special section of the Owner’s Portal at Kia.com has been published for owners to research software upgrade eligibility and availability and receive more information on ordering a steering wheel lock if applicable at https://owners.kia.com/us/en/kia-owner-portal.html/.
