Woman Dropped by Insurance Due to Car's Make and Model: A Harsh Reality of High Theft Rates

Photo bywndu

MAPLE GROVE, Minn. — For Erin Walters, a Minnesota resident, the excitement of owning a new car has turned into a distressing ordeal. After being a loyal State Farm customer for five years, Walters was shocked to find that her insurance company refused to renew her policy, citing the "high theft rates" associated with her car's make and model.

When Walters purchased her 2019 Hyundai Elantra, it marked a significant milestone—the first new car she had bought in 30 years. "I love it," she shared, recalling the sense of freedom the car brought her. However, that sense of freedom was shattered a week ago when she attempted to renew her car insurance.

"I was shocked that State Farm was denying me," Walters said, explaining that her policy was not renewed solely because of the car's make and model. "I would never buy a Hyundai because they are not stepping up to fix this situation," she lamented.

A spokesperson for State Farm provided insight into the decision: "State Farm has stopped accepting new customer applications in some states for certain model years and trim levels of Hyundai and Kia vehicles because theft losses for these vehicles have increased dramatically. This is a serious problem impacting our customers and the entire auto insurance industry."

Walters' struggle did not end there. Despite her efforts to find alternative insurance options, she faced repeated rejections, including from Progressive. The prevalence of car thefts involving Kias and Hyundais has been alarming, with Minneapolis police reporting that 40% of stolen cars in the last week were from these brands. However, they also noted a recent decrease in such incidents.

Reflecting on her purchase, Walters expressed deep regret: "I've never cried over a car before," she said. She wishes she had never bought the vehicle, given the subsequent challenges.

In response to the escalating thefts, Hyundai has introduced a free anti-theft software update for nearly 4 million vehicles. While this measure aims to address the issue, it remains to be seen how it will impact the insurance industry's stance on Hyundai and Kia vehicles.