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Insurance Companies Refuse Service and Raise Rates

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Kia and Hyundai owners are losing opportunities for insurance because of a viral TikTok trend.
  • Post category:News

Kia and Hyundai owners are dealing with some difficulties when it comes to obtaining insurance for their vehicles. Insurance companies are beginning to refuse to service them as clients or, if they are servicing them, many are raising rates for them. This is all due to an influx in auto thefts of Kias and Hyundais.

The influx of thefts of Kias and Hyundais was brought on by a TikTok trend showing that breaking into and stealing a Kia or Hyundai is easier than other cars. Kia and Hyundai are both manufactured by the same parent company, which is why they both fall victim to the easiness of breaking in.

Because of the increase in thefts, companies have begun to raise rates for current customers and turn away new ones.

In Las Vegas, by the end of March, 531 Kias and 823 Hyundais had been stolen, according to a report from the Las Vegas Police Department. With these staggering numbers, State Farm and Allstate are among the companies turning away new customers that are Kia or Hyundai owners.

State Farm released a statement expressing how they are having to react this way to take it very seriously. They explained that they are having to view how this trend affects the costs of claims. They stated they ultimately chose to take this action in order to protect their other current and future policyholders as well as their business overall.

Allstate released its own statement with the same sort of idea. They pointed out the increase in the theft of these vehicle brands as the reason they will not bring on new customers who own certain year models and live in certain states in which the theft is even higher than others. Nevada is one of these states.

One resident of Las Vegas expressed being upset with insurance companies over this. She feels this is not right nor fair since it is “not our fault that they made their cars so easy to get broken into.” She discussed the fact that she is a single mother of two who provides for everything on her own and paying an increased rate for the simple fact that she owns a Kia or Hyundai is unfair and ridiculous.

It is unclear how long this rate increase and service refusal will continue, but it does seem pretty secure at the moment for several companies.

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