Update: Hyundai reached out to us with a new statement regarding this ongoing story.
"Hyundai Motor America regrets this decision by insurers and its impact on select Hyundai vehicle owners and lessees, which we anticipate will be temporary. Engine immobilizers are now standard on all Hyundai vehicles produced as of November 2021 -- and have long been standard equipment on all Hyundai vehicles with push-button ignitions.
Additionally, Hyundai has taken a series of actions to deter thefts of affected vehicles, including an upcoming software upgrade to prevent the mode of theft popularized on social media. This software upgrade will be available in the very near future and will be provided at no cost to customers. We will soon be providing more details regarding the timing and vehicles eligible for this software upgrade.
Hyundai is also providing free steering wheel locks, as available, to select law enforcement agencies across the country for distribution to local residents who own or lease affected models. Owners may also bring their vehicles to a local Hyundai dealer for the purchase and installation of a customized security kit. We apologize for the inconvenience to affected customers.
Hyundai is committed to ensuring the quality and integrity of all our products through continuous improvement. Hyundai quality is among the best in the industry, ranking third among all brands in the 2022 U.S. Vehicle Dependability Study (VDS) and historically above the industry average in J.D. Power's U.S. Initial Quality Study (IQS)."
State Farm will no longer issue new insurance policies for select Hyundai and Kia vehicles in certain states due to a massive rise in thefts among the vehicles. State Farm employees have confirmed the list of cars that will be rejected and it covers 105 specific models and model years. The confirmation of 105 Kia and Hyundai models being blacklisted comes via New Orleans CBS affiliate 4WWL and includes a chart of models and years that are restricted.
The restriction reads: "Kia and Hyundai models and years with an 'x' below will be ineligible unless the sales associate has verified the presence of a passive engine immobilizer."
The list includes model years that likely still fall under warranty for existing customers and includes:
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2015-2021 Hyundai Accent
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2015-2021 Hyundai Elantra
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2015-2021 Hyundai Kona
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2015-2021 Hyundai Santa Fe
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2015-2021 Hyundai Tucson
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2015-2021 Hyundai Veloster
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2015-2021 Kia Forte
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2015-2021 Kia Optima (including hybrid models)
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2015-2021 Kia Rio
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2015-2021 Kia Sedona
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2015-2021 Kia Sorento
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2015-2021 Kia Soul
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2015-2021 Kia Sportage
The insurance company Progressive is also denying Kia and Hyundai models from coverage, hopefully also with the clause of "unless the sales associate has verified the presence of a passive engine immobilizer."
This is a public relations disaster for Kia and Hyundai and puts a spotlight on the fact that neither included immobilizers as standard until November 2021 - far behind the vast majority of other manufacturers. The exponential rise in thefts of both brands' cars comes from viral social media videos highlighting how easy it is to steal many models.
When the Highway Loss Data Institute reviewed 2021 insurance claims, which found that among 2015-19 model-year vehicles, theft claims were close to twice as common for Hyundai and Kia vehicles than any other automaker.
There has been some discussion of Hyundai offering a free software update for affected cars as of February, but both brands will have to come up with something that cures the issue. If more insurance companies start blacklisting these cars unless customers add security features themselves, both companies will take a huge hit in brand perception. Other bad publicity from this issue includes a major city suing both brands.
