Hyundai Reveals New Insurance Options For Models Popular With Car Thieves

Apr. 16, 2023 1:56 PM ET by Karl Furlong Industry News / Comments

This comes after several major insurers stopped insuring certain Hyundais and Kias.

Hyundai is still very much in damage control mode when it comes to the spate of thefts involving its easy-to-steal vehicles, and the company has now announced a program in collaboration with AAA insurers to provide various insurance options for owners of affected cars.

Well over a year ago, videos on social media went viral about an easy method of stealing Kias and Hyundais, leading the Korean automakers to announce an anti-theft software update for models like the Accent and Kona.

However, it was a case of too little, too late, as major insurance companies had already begun to refuse the issuing of new insurance policies on affected models. That put many Hyundai and Kia customers in a predicament, leading to the newly announced program with AAA insurers.

Hyundai

The AAA insurance offering will be available in all states besides Alaska, Massachusetts, and Washington, where AAA doesn't offer insurance. New and renewal policies will be issued for eligible Hyundai models, and consumers can visit the website of AAA insurers to receive a quote.

"We are pleased to collaborate with AAA insurers in the best interest of our shared customers and provide support for those who were having difficulty securing and sustaining auto insurance as a result of the increased criminal activity targeting Hyundai vehicles," said Randy Parker, CEO of Hyundai Motor America.

"AAA is about taking care of people," said Marshall Doney, CEO and President of AAA. "Collaborating with Hyundai on this issue to help provide customers with a viable solution felt like a natural fit for us."

Hyundai

Along with this announcement, Hyundai is still hard at work getting the anti-theft software upgrade into the almost four million cars that are eligible for it. All of these vehicles will be eligible for the upgrade this week, two months ahead of the original timeline. The most recent cars eligible for the update are certain Elantra GT, Genesis Coupe, Palisade, and Sante Fe models.

The software update alters some vehicle control modules in Hyundais with the turn-key-to-start ignition, whereby an "ignition kill" feature is activated. However, customers must use the key fob to unlock the cars to deactivate this feature. Hyundai will even go so far as to place window decals on upgraded cars to alert thieves that the anti-theft technology is in place.

"Our goal is to get every one of these vehicles into a dealership for the free software upgrade," said Parker.

Hyundai

A smaller group of 2021-2022 models will not be eligible for the software update, but Hyundai will reimburse them for the purchase of steering wheel locks. Another plan is to offer these customers optional reimbursement of an alternative anti-theft device, such as an alarm kit.

While all this is going on, the Korean manufacturer is working with over 450 law enforcement agencies countrywide to get no-cost steering wheel locks to communities that have been affected by the series of vehicle thefts.

It's unclear if a plan is also being made to secure an insurer for affected Kia owners, but it would be wise to do so. Earlier this year, State Farm confirmed that new insurance policies wouldn't be issued for over 100 Hyundai and Kia models, including popular ones like the Sportage and Sorento.