Jan 31, 2023

Some Insurance Companies Leary of Insuring Kia and Hyundai Cars Transcript

Some Insurance Companies Leary of Insuring Kia and Hyundai Cars Transcript
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Car insurance companies are denying coverage for certain models of cars due to the ease of theft, partially due to a TikTok challenge. Read the transcript here.

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Brien Blakely (00:00):

We begin tonight with a Kia and Hyundai TikTok Challenge, which created a perfect storm for drivers across the country. Not only are specific models of vehicles easier to steal, but now major insurance providers have stopped offering coverage for some new customers who drive these vehicles. Queens City News reporter, Daniel Pierce, joins us live from CMPD headquarters tonight at Uptown and Daniel. Are drivers here at Charlotte being impacted by this change?

Daniel Pierce (00:25):

At this moment? No. But I was speaking with the State Farm representative and they told me that there is a potential for that to change if this trend does not stop. As of last week, CMPD announced that 8 out of every 10 vehicles that are stolen in this area are Kias or Hyundais.

(00:46)
It’s now more than just preventing theft. It’s about keeping coverage costs low and accessible for future State Farm and Progressive drivers. The rise in vehicle thefts involving these vehicles have become too costly to cover according to the companies, and a statement to Queen City News, State Farm representatives say, “State Farm has temporarily stopped accepting new customer applications in some states for certain model years and trim levels of Hyundai and Kia. We take seriously our responsibility to manage risk and the impact of excess claim cost on all of our customers.” Progressive representatives have not responded to media emails.

DC. David Robinson (01:22):

If you’re a Kia or Hyundai owner, and you’re hearing me right now, please take precautions to put a club on your steering wheel park in a well-lit area. Know where your vehicle is, get a car alarm.

Daniel Pierce (01:33):

It’s all linked to videos on TikTok that have reached more than 33 million views known as Kia and Hyundai Challenges. Video shows people how to hot wire and still vehicles made between 2015 and 2019. All it takes is using a USB cable. It’s because there is a lack of anti-theft technology. According to the Insurance Institute for Highway Safety immobilizers were standard for only 26% of Kia and Hyundai vehicles in 2015. Theft involving these vehicles happen at twice the rate compared to any other vehicle. Kia representatives tell Queen City News that has, “Been developing and testing enhanced security software for vehicles and has started notifying owners that it will make software upgrades available for most effective vehicles by mid-2023.”

(02:25)
Now, I’ve reached out to all four of the agencies involved in this and I’ve asked for a detailed list of what vehicles, what make of the vehicles are, what model of the vehicles are impacted by this. I’ve also asked the cities, the states, and even what needs to change to get that temporary hold lifted, and I’m still waiting for answers and those are answers that I know a lot of people are going to want to know. That local State Farm representative that I spoke with earlier today told me that if this were to be impacted here in Charlotte, it wouldn’t just be impacted in the city, it would more than likely be impacted and put in place throughout the state. Live in Uptown, Daniel Pierce, Queen City News.

Brien Blakely (03:04):

Yeah, a lot to think about for Kia, Hyundai owners. Daniel, thank you.

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