KIA, Hyundai no longer covered by some insurance companies due to TikTok theft trend

SAN ANTONIO – A TikTok trend educating folks how to scouse borrow KIA and Hyundai vehicles has now not simplest higher the velocity of thefts of the ones automobiles however has additionally stuck the attention of auto insurance companies, some of which no longer will supply protection for the ones automobiles.

“If you already have a vehicle, the insurance company wasn’t dropping you. But if you were going to be one of their new customers and had one of those vehicles, they weren’t going to cover it because of the ease of stealing it,” stated Rich Johnson with the Insurance Council of Texas.

The uncommon transfer by businesses like State Farm and different companies comes as a primary to Johnson.

“I’ve been in the insurance industry for the better part of a decade. I can’t recall any time where companies were refusing to insure what we would call an ‘average consumer vehicle,’” Johnson stated.

The dangerous news is going past simply attempting to get new insurance. KIA and Hyundai homeowners are paying extra to renew their insurance policies, with insurance charges around the board additionally up due to the rise in thefts of the ones automobiles.

“There are communal factors that you look at. Are cars being stolen in your area? Are there a lot of thefts in your area or state or county?” Johnson stated.

Texas leads the rustic in theft claims for USAA. The insurance corporate stated claims are up 8% since 2021, and thefts proceed to upward push per 30 days.

Johnson advises folks to store round when on the lookout for the correct insurance company. He additionally recommends on the lookout for reductions for college students, the army, or those that have taken defensive using classes.

Officials with State Farm despatched KSAT this remark in reaction to the thefts:

“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.

“For information on auto theft, we recommend reaching out to the Insurance Information Institute and the National Insurance Crime Bureau.”