[Asia Economy Reporter Kim Daehyun] Some insurance companies in the United States are refusing to provide insurance for Hyundai and Kia models that have become targets of the so-called 'theft challenge' in certain areas.
According to reports from U.S. media including CNN on the 28th (local time), insurance companies Progressive and State Farm are not accepting insurance applications for Hyundai and Kia models without 'anti-theft technology' in cities such as Denver, Colorado, and St. Louis, Missouri. This is due to a surge in vehicle thefts of these two companies' cars as the so-called 'Hyundai-Kia car theft challenge' has been rampant on social networking services (SNS).
The vehicles targeted are certain Kia models produced between 2011 and 2021, and specific Hyundai models manufactured between 2016 and 2021. Most of these vehicles use metal keys and lack the anti-theft device known as an 'engine immobilizer.'
According to an analysis of insurance claims by the nonprofit organization Highway Loss Data Institute (HLDI), the theft rate of some Hyundai and Kia models released between 2015 and 2019 was more than twice that of other vehicles of the same model years.
As thefts surged, vehicle owners in Wisconsin, Ohio, Missouri, and Kansas filed a class-action lawsuit last year, claiming compensation for thefts caused by defects in Hyundai and Kia vehicles. Local governments in Columbus, Ohio; St. Louis, Missouri; and Seattle, Washington, also filed lawsuits.
Hyundai and Kia are responding by providing owners with steering wheel locks, anti-theft security kits, and other measures.
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