How do car thefts affect car insurance in Shelby County?

MEMPHIS, Tenn. — State Farm, one of the largest auto insurers in the United States, refuses to write policies in certain cities for some older Hyundai and Kia models it deems too easy to steal.

In a statement to ABC24, State Farm said;

“State Farm has temporarily stopped accepting new customer applications in some states for certain model years and trim levels of Hyundai and Kia vehicles as theft losses for these vehicles have increased dramatically. This is a serious issue impacting our customers and the entire auto insurance industry.” . We take seriously our responsibility to manage the risks and impacts of overcharged claims on all of our customers. In this regard, we need to take action to protect our policyholders and our business. We are monitoring this situation very closely and will adjust our approach accordingly .”

MPD says there is 1000% percent increase in car theft in 2022 compared to 2021; most of the cars stolen were Hyundais and Kias.

This is a serious issue that insurance companies and experts say impacts customers and the entire auto insurance industry.

“These vehicles are often badly damaged; making repairs much more expensive,” Loretta Worters of Insurance Information Institute said. “So it has an impact on the insurance industry, and an impact on consumers.”

Hyundai and Kia rolled out a software update earlier this year to combat an increase in theft related to the TikTok challenge. This software will extend the duration of the alarm sound from 30 seconds to one minute and require the key to be in the ignition switch to start the vehicle.

About four million Hyundai and five million Kia are eligible for the renewal. But Worters and others recommend drivers push other safety measures, namely immobilizers.

“Believe it or not, some simple things, like some people, leave their car running with the key in the car. This is a well-lit area if not in the garage and have an anti-theft device,” says Worters.