State Farm no longer offering insurance to certain Kia and Hyundai owners due to high theft totals
BIRMINGHAM, Ala. (WBRC) - The cost of your car insurance may climb this year and for some drivers those hikes won’t be your fault at all.
For some, the hike is because their vehicle is more likely to be stolen. Certain makes of Kia and Hyundai have deficiencies that are allowing would be thieves to ride off in your car.
We first told you about this story back in October. Tutorials and viral videos are still all online. They not only show these thefts taking place, but some even tutor people on how to commit the crimes.
Some insurance companies are no longer taking on customers who have the vulnerable vehicles.
State farm sharing this statement with 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.
Drivers who already have insurance may notice an increased cost, with the likelihood of your vehicle being stolen playing a definitive factor.
“A lot of different factors in play but one of those is certainly how easy it is to steal that particular vehicle. The rate is determined on your specific vehicle. It is your make and model and that year. All of the past stats about how easy it is to steal it, how much it costs to repair it,” said Clay Ingram with Triple AAA Alabama.
Ingram says he has not heard of insurance costs rising for Triple AAA due to that reason.
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