Minnesota woman is denied car insurance by State Farm because of critical design error in the make and model of her car
A Minnesota woman has revealed that multiple auto insurers denied her coverage because of the specific make and model of her car.
State Farm and Progressive have notified Erin Walters that they will not offer insurance on her blue 2019 Hyundai due to the car’s “high theft rate.”
The model is a target for thieves because it has no immobilizer system, making it easy to steal.
After being a loyal State Farm customer for five years, Walters sought to renew her policy last week, but her request was denied.
āI was shocked that State Farm turned me down,ā she said. WCCO NewsShe added that she would never have bought the Hyundai if she had known about the problem.
She is now urging Hyundai to recall the vehicles and install anti-theft software.
Minnesota woman Erin Walters recently discovered that her blue 2019 Hyundai Elantra does not qualify for auto insurance with State Farm or Progressive
Walters is pictured in her car, the first new vehicle she’s been able to purchase in 30 years
State Farm sent a statement to WCCO explaining in more detail why Walters and other customers are denied coverage for certain Hyundai and Kia models, another car brand prone to theft.
“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 issue that impacts our customers and the entire auto insurance industry,” a spokesperson said.
“We take our responsibility to manage risk and the impact of excessive claims costs on all of our customers seriously. In this case, it became necessary to take action to protect our policyholders and our business.”
Walters was initially happy with her car, as it was the first time in 30 years that she had been able to purchase a new car.
But now she can’t drive it without breaking the law.
Between 2011 and 2021, nearly 10 million Kia and Hyundai vehicles sold in the U.S. were not equipped with immobilizers, meaning they could be started simply and crudely using only a flat-head screwdriver and a USB cable.
Once a thief pulls off the plastic steering column cover, he can pull out the ignition key and use the end of a USB cable to turn a square tab and start the car. The cable is not used to transfer data.
Since there is no immobilizer, there is nothing to prevent the car from starting.
Because of this serious design flaw, videos have gone viral showing teenage vandals breaking into these cars and driving away.
Walters poses next to her new car shortly after purchasing it
Walters said she now has to spend at least four hours a day looking for car insurance after State Farm turned her down
State Farm cited ‘theft losses’ as reason for denying insurance claims for certain Kia and Hyundai models
The phenomenon is so common that they are now called “Kia Boys.” These carjackings by inexperienced, thrill-seeking drivers often have deadly consequences.
In 2022, four teenagers, including a 14-year-old mother, were killed when a stolen Kia Sportage crashed in Buffalo, New York.
For Walters, this means that she has to spend at least four hours a day looking for a company that will insure her car.
āI’ve never cried over a car,ā she said.
When she wanted to take out insurance with Progressive, she was also told that her car was uninsurable.
“Thank you for purchasing from Progressive. Based on the vehicle information, we are unable to offer you a policy due to high theft rates,” the company told her when she submitted the application.
State Farm has previously 105 Kia and Hyundai models ‘ineligible’ for insurance due to the high number of carjackings.