The Surprising Reason Some Kia and Hyundai Owners Can't Find Car Insurance Right Now

Social media challenges can sometimes be a little strange, but most of the time they're harmless. Every once in a while, though, one crops up that's dangerous. That's something that many Kia and Hyundai owners found out the hard way when their cars disappeared from parking lots and street corners.

The Kia Challenge, which began on TikTok, showed people how to exploit a vulnerability in older Kia and Hyundai models and quickly led to some devastating consequences for owners. Now some insurance companies have decided they aren't willing to insure these cars. But if you own a Kia or Hyundai, don't panic. You can still protect your car and get the coverage you need to drive legally. Here's what you need to know.

What happened?

Some TikTokers learned that certain Kia and Hyundai models released between 2015 and 2021 didn't have engine immobilizers installed in them. This means that, with a few simple tools, you can start the vehicle without a key or key fob in the car. The video outlining how to do this started trending in the summer of 2022, and Hyundais and Kias all across the country quickly began disappearing.

In 2021, Wisconsin -- one of the earliest states affected -- saw overall losses from Hyundai and Kia thefts rise to 30 times their 2019 levels, according to the Insurance Institute of Highway Safety. And among 2015 to 2019 models, Hyundais and Kias were stolen twice as often throughout the U.S. compared to other manufacturers' cars.

This naturally posed a big problem for auto insurers who had to pay out a lot of money in theft claims. And it didn't take long before some decided it just didn't make sense for them to continue insuring these vehicles in light of the risk they posed.

So far, State Farm and Progressive have both announced that they're refusing to write new policies for certain 2015-2021 Kia and Hyundai models in select areas. Here's the full list of vehicles State Farm has deemed ineligible, according to MotorTrend:

• 2015-2021 Hyundai Accent
• 2015-2021 Hyundai Elantra
• 2015-2021 Hyundai Kona
• 2015-2021 Hyundai Santa Fe
• 2015-2021 Hyundai Sonata
• 2015-2021 Hyundai Tucson
• 2015-2018 Hyundai Veloster
• 2015-2021 Kia Forte
• 2015-2021 Kia Optima
• 2015-2016 Kia Optima Hybrid
• 2015-2021 Kia Rio
• 2015-2021 Kia Sedona
• 2015-2018 Kia Sorrento
• 2015-2021 Kia Soul
• 2015-2021 Kia Sportage

Progressive doesn't appear to have released a list of which models and model years it's no longer insuring, but it's likely similar to the list above.

What can drivers do?

This is a distressing situation for owners of the Hyundai and Kia models affected for a number of reasons. It's natural to want to keep your vehicle safe, and you need insurance to drive legally. But the important thing is not to panic.

There are plenty of other insurance companies who are still selling policies for these vehicles, although it's possible drivers could face higher rates going forward due to the increased risk of theft. But shopping around can help Hyundai and Kia owners find their best possible rate.

Those who are already insured by State Farm or Progressive may be covered through the end of their policy term. But the companies won't renew the policies afterward, so it's important to find a new provider before coverage lapses.

Drivers could also drop their comprehensive coverage if they own their car outright. This is the coverage that reimburses drivers in the event of theft. But consider this a method of last resort. It might make car insurance more affordable, but it means you won't get any help from your insurer if your car is stolen.

In addition, drivers should take steps to protect their vehicles from these vulnerabilities. Earlier this year, Kia and Hyundai announced free software updates for affected models that should make it more difficult for thieves to hack them. Reach out to the nearest Hyundai or Kia dealership to learn more about how to get these updates.

Drivers should also park their vehicles somewhere less accessible to thieves, like a garage, whenever possible. When you have no choice but to leave your car out in the open, consider investing in after-market security features, like steering wheel locks, to deter thieves.

And if you were already thinking about ditching your Kia or Hyundai for a new car, now might not be a bad time to start looking. Price it out and see what makes the most sense for you.