CHARLOTTE, N.C. — Kia and Hyundai have agreed to pay more than $200 million to settle a class action lawsuit that claims that some of their models are easy to steal.
Viewers have told WCNC Charlotte's VERIFY team that insurance companies are responding to the problem by refusing to write new insurance policies for these vehicles. Ann H. submitted an email claiming a State Farm agent said the company will no longer write new policies for certain Hyudais and Kias.
"I was talking to my State Farm Insurance agent yesterday and was informed that all insurance companies will no longer write new policies for Hyundai's and Kia's due to increased thefts. Is this true?"
OUR SOURCES
- The North Carolina Department of Insurance
- State Farm Insurance
- Automakers Kia and Hyundai
WHAT WE FOUND
When VERIFY reached out to State Farm, a spokesperson said the company has temporarily stopped accepting new customer applications in some states for certain model years and trim levels of Hyundai and Kia vehicles because theft losses for their cars have increased drastically.
When asked whether North Carolina was one of those states, the company said it is not sharing information on specific states.
The National VERIFY Team also spoke with a Progressive Insurance spokesperson who says that the company isn't issuing new policies in some areas because of increased thefts. However, they didn't specify where.
In an email, The North Carolina Department of Insurance said, in part:
"Liability insurance is a legal requirement for operating a car in North Carolina, so companies cannot deny offering liability coverage."
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They said auto theft falls under comprehensive/collision insurance coverage, which the Department of Insurance does not regulate. In North Carolina, insurance companies can choose not to cover certain vehicles under their comprehensive/collision insurance policies.
Kia said the affected models include 2011 to 2021 Kia vehicles equipped with a steel ignition key for turn-to-start operation.
Meanwhile, Hyundai didn't provide TEGNA's VERIFY team information about specific models. A spokesperson said that the company regrets this decision by insurers and its impact on select Hyundai vehicle owners and lessees.
Contact Meghan Bragg at mbragg@wcnc.com and follow her on Facebook, Twitter and Instagram.
WCNC Charlotte's Verify series is all about trying to make a difference in the Carolinas by making sure the community has the correct information. WCNC Charlotte outlines concisely what we know and what we don't know. Sometimes the answer can be surprising. Watch previous stories where we verify social media claims in the YouTube playlist below and subscribe to get updated when new videos are uploaded.