Can your insurance company ‘blacklist’ certain car models?

When easy hacks to steal certain Kia and Hyundai car models started appearing on social media, thefts of these cars became so common that a few larger insurance companies stopped writing new policies for them.

Which begs the question: Could your insurance company refuse to insure your car because of the model you buy? It is highly unlikely.

A unique situation. When it comes to insurance companies limiting or suspending new policies on cars remember that context is key. In the case of these models, the manufacturers built the cars without including engine disablers—which prevent thieves from starting the car by any method other than having the proper key or fob. The passive engine disabling anti-theft feature has become standard on 96% of all vehicles manufactured since 2015.

Millions in losses. The losses due to thefts of these models in the past year have been massive. However, companies have only limited or stopped issuing new policies on these models in certain cities where the problem has reached epidemic levels. At the time of this writing, all current policies are being honored.

Nationwide these models have become so vulnerable to theft that the risk an insurance company takes when it writes new auto insurance policies is exponentially higher than any other model of car. Even so, in most places across the country drivers can get new auto policies written on these specific car models.

If you have a question about your auto coverage, or if you want to make sure you have enough coverage in the event of a theft, give our agency a call.

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