Before You Make Another Auto Purchase — Did You Know?

Many of the premier carriers have halted the binding and issuing of new auto policies in Washington on certain manufacturers, specific models, and years.

At the time of this note, Allstate was still allowing the addition of 2011–2021 KIA and Hyundai models to be added to existing in-force policies.

Special circumstances — like spinning off a young driver from a parent policy because the young adult has purchased their first car and now needs their own policy — are one instance where obstacles could prevent what is otherwise an easy transition.

What New Customers Are Facing

At this moment, many carriers that are offering new insurance to new customers initiating their first policy for these affected models are limiting those customers to Liability and Uninsured Motorist coverages only. This would fail the requirement to obtain Collision and Comprehensive coverages — which, when financing or leasing a vehicle, is required 100% of the time by the lender.

There have been more than one prospective new customer from three different highly regarded carriers who have contacted us saying they are being dropped (non-renewed) by their current carrier for no reason other than owning a Hyundai or KIA model at risk.

My family has a 2021 KIA Sorento that we very much like and rely on for daily transportation needs. If we were buying that same 2021 model today and did not already have an Allstate policy, we would likely not be able to get a policy with full coverage.

The Theft Problem

There are some 68 municipalities that have filed some type of lawsuit or grievance with the Hyundai Corporation because the vehicles have allegedly lacked engine immobilization technology — making many Hyundai and KIA models easier to steal.

The technology to combat this problem is being installed in some of these same models. One family member had his Hyundai broken into, only for the vandal's plan to be thwarted by an extra pedal on the floor — it was a manual transmission. After months of waiting on replacement parts, his car was repaired and is now better equipped.

Our hope is that insurance companies will start to see a sharp decline in the break-ins and thefts affecting these exceptional car lines, which are such popular alternatives to the more traditionally sought-after brands in the US.

2022 and 2023 Models Are Different

One customer called concerned that a new KIA he was buying would not be insured. I reminded him that all 2022 and 2023 models have the necessary equipment to immobilize the vehicle — preventing the ignition tampering, easy starting, and driving away that has been possible on older models.

The Bigger Picture

Our job as an insurance company is to provide protection to all at an equitable and competitive premium. If any company has an overweighting — too much exposure — of these vehicles targeted for theft, the comprehensive premiums in the future could skyrocket. As the nature of insurance spreads the risk to all in the pool, this could affect your premiums even if you don't own one of these models.

The extreme inflationary pressures of auto and property repairs have already caused carriers to raise costs substantially. The largest auto insurance provider reportedly lost $13 billion in 2022 out of less than $50 billion in premium collected — a staggering number.

Please take the necessary extra step to be fully aware of what your decision will mean to you while the industry navigates this difficult environment.

Please call before making a final decision on your purchase to ensure your expectations will be met. We are here to help.