The RISE of Auto Thefts & Impact on Insurance

In recent months, there have been a number of high-profile car thefts involving Hyundai and Kia vehicles. These thefts have not only caused financial losses for car owners, but they have also had significant impacts on the insurance industry.

The Hyundai and Kia thefts have been particularly concerning because the thieves appear to be using sophisticated methods to steal the cars. In some cases, they are using devices to intercept the signals from the car’s key fob, allowing them to unlock and start the car without needing the physical key. This has made it more difficult for car owners to protect their vehicles and has resulted in a higher number of successful thefts.

In addition to the financial losses from the thefts, many have also experienced challenges with insurance as well.  Insurance companies have had to pay out claims for the stolen vehicles, and this has led to higher costs that are passed on to customers in the form of increased premiums.

Insurance companies have also had to reassess their risk assessments for Hyundai and Kia vehicles. Prior to the recent thefts, these vehicles were not considered high-risk, but the increase in thefts has caused insurers to reevaluate their underwriting practices. This has resulted many insurers refusing to insure them altogether.

Car manufacturers have also been impacted by the thefts. They have had to take steps to improve the security features of their vehicles to prevent future thefts. This has included the development of new technologies to prevent keyless thefts, such as signal-blocking pouches for key fobs or the use of biometric authentication.