There is potentially a positive development for Hyundai drivers after a surge in thefts has rocked many cities across the nation, and left drivers of certain vehicles with few options to ease their fears.
Automaker Hyundai announced late on Thursday it has partnered with independently operated AAA insurers to offer drivers an insurance option after several major insurers announced they would no longer cover certain theft-prone vehicles.
The trouble for Hyundai and Kia owners started last year when videos posted on social media exposed a security vulnerability and method to easily steal certain models, made from 2011 to 2021, that lacked a device inside that would prevent it from being stolen without a key present.
Immediately following the circulation of those videos, Hyundai and Kia thefts skyrocketed in certain pockets of the country, including here in Chicago.
NBC 5 Responds has been tracking the theft wave and found there was an 890% increase in the number of Hyundai and Kia vehicles stolen citywide, amounting to thousands of cars, according to data from the Chicago Police Department.
This new insurance option from Hyundai comes after earlier this year, two of the largest U.S. auto insurers – State Farm and Progressive – announced they would no longer be accepting new Hyundai or Kia customers, based on how risky the cars are to drive.
Both companies attributed the policy changes to the surge in thefts.
“This is a serious problem impacting our customers and the entire auto insurance industry,” a spokesperson for State Farm insurance said this past February. “We take seriously our responsibility to manage risk and the impact of excess claim costs on all our customers.”
Progressive said in addition to limiting new customers, existing Hyundai and KIA customers may also see rate increases.
Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly Chicago Catch-Up newsletter.
“During the past year we’ve seen theft rates for certain Hyundai and Kia vehicles more than triple and in some markets these vehicles are almost 20 times more likely to be stolen than other vehicles,” a Progressive spokesperson told NBC 5 Responds. “In response, in some geographic areas we have increased our rates and limited our sale of new insurance policies on some of these models.”
While drivers may have been frustrated by the news, the Consumer Federation of America told NBC 5 in this case, the insurers were doing what they’re supposed to.
“It's really important that insurance companies send signals to consumers about what is going to be safe on the road,” said Doug Heller with Consumer Federation of America. “It's just amazing to me that the car makers have let it get this far.”
Last month, a coalition of 23 state attorneys general and consumer protection offices blasted Hyundai and Kia for each company’s “failure to address” thefts of their vehicles nationwide; a problem that the states say was created by the automakers themselves.
Hyundai and Kia have announced a new software patch that they hope will curb the thefts, and fix that security vulnerability.
Hyundai said this week that it has “expedited the roll out of the free anti-theft software upgrade for affected vehicles,” and that “all of the nearly four million vehicles involved will be eligible for the upgrade this week, two months ahead of the original schedule.”
Hyundai customers with their Vehicle Identification Number (VIN) can use an online tool at this website here to see if they are eligible to schedule their upgrade.
Kia acknowledged it has made progress with its software upgrade program, telling NBC 5, “Before the end of April, Kia will have contacted close to 75% of their total affected population and is seeing strong response from owners for installation.”
Kia owners can search their VIN using this online tool on Kia’s website linked here to find out if and when their vehicle is eligible for the free software upgrade.
While the software option is available for Kia owners, they are not eligible for the insurance option announced by Hyundai.
A spokesperson for Kia told NBC 5, “Kia America does not have information to share at this time on whether it will partner with AAA or another company to provide similar insurance to owners of affected Kia vehicles.”
Meanwhile, Hyundai Motors CEO Randy Parker said the automaker believes this partnership with AAA insurers will “provide support for those who were having difficulty securing and sustaining auto insurance as a result of the increased criminal activity targeting Hyundai vehicles.”
Hyundai drivers can learn more about the insurance option and get a quote by visiting AAA.com/insurance.
