According to one auto sales market expert, insurance giant State Farm has begun to draw the line when it comes to insuring certain cars made by Kia and Hyundai.
Zach Shefska, CEO of concierge auto marketplace CarEdge (formerly YAA), took to his company’s TikTok account (@caredge) in July to warn prospective buyers that they may want to reconsider buying vehicles from the two manufacturers if they want to depend on State Farm as their insurer.
The video, posted on July 29, has since garnered over 816,800 views and counting.
Why is State Farm cracking down on the manufacturers?
Shefska claims the crackdown is due to one significant factor: Kias and Hyundais are too easy to steal.
“State Farm announced [on July 29] that they expanded the number of Hyundai and Kia vehicles that are no longer eligible for auto insurance through their program because, well, those vehicles can get stolen easily,” he claims in his video.
Per The Zebra, the following models were “blacklisted” by the company in April:
- 2015-2021 Hyundai Accent (all body styles)
- 2015-2021 Hyundai Elantra (two-door and four-door)
- 2015-2021 Hyundai Kona
- 2015-2021 Hyundai Santa Fe
- 2015-2021 Hyundai Tucson
- 2015-2018 Hyundai Veloster
- 2015-2021 Kia Forte
- 2015-2021 Kia Optima
- 2015-2016 Kia Optima Hybrid
- 2015-2021 Kia Rio (all body styles)
- 2015-2021 Kia Sedona
- 2015-2016 Kia Sorento
- 2015-2021 Kia Soul
- 2015-2021 Kia Sportage
“The State Farm news from today is pretty shocking,” Shefska continues. According to the documentation he presents in the video, “State Farm decided they were no longer going to write auto insurance for 2011 to 2022 Hyundai and Kia vehicles.”
However, he claims that only vehicles that do not have the passive engine immobilizer will be affected.
The Daily Dot has reached out to both Kia and Hyundai via email for a statement.
Why are Hyundais and Kias so easy to steal?
All of this dates back to a surge in Kia and Hyundai thefts back in 2021. Car thieves became aware that certain models made from 2011 on did not come equipped with an immobilizer, an anti-theft device that prevents the car from starting if a specific key isn’t used.
According to Vox, when it comes to Kias and Hyundais lacking an immobilizer, “all thieves have to do is rip off the steering column cover, remove the ignition cylinder, and turn the rectangular nub behind it to start the engine.”
The cars could be stolen using only a USB plug and screwdriver to turn the nub, allowing thieves to make off with one of the vehicles in a matter of seconds.
And then the trick hit social media.
@caredge Replying to @chochomama12 #statefarm won’t insure certain #hyundai and #kia vehicles … what do you think? #caredge #cartok ♬ original sound – caredge
What is the “Kia Challenge?”
Kia and Hyundai thefts spiked in 2022 after videos showing the technique hit social media apps like TikTok. According to Shefska, the rise in theft was “1,000 percent.”
While most of the stolen cars were only taken for “joyrides” and then abandoned elsewhere, per Vox, “Reckless driving of the stolen cars has resulted in injuries and deaths, and the cars have also been used to commit other crimes.”
“Earlier this year, Hyundai settled with over 9 million vehicle owners for over $200 million to essentially say we [Hyundai] did no wrongdoing,” Shefska tells his viewers in the video.
“So yeah,” Shefska notes at the video’s conclusion, “park your Hyundai or Kia in a garage, please.”
Viewers react
Many viewers were outraged that State Farm could elect which vehicles it would insure or not.
KrisC (@soulstargurl) wrote, “The fact that insurance companies get to decide not to provide the service they are in business for is INSANE!”
“If all insurance company follows suit, wouldn’t it be illegal to drive [without] insurance? And umm force the owner to have to get a new vehicle with today’s ridiculous interest rates?” another viewer pointed out.
A few other viewers stated that their own vehicles had been stolen.
“My 2018 Hyundai that got stolen last month,” Kate (@katiecatme0w) wrote.
Another person added, “I got my Hyundai stolen in February.”
The Daily Dot has reached out to Shefska via email and TikTok direct message for further comment.
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