Difficulty Insuring Your Kia or Hyundai? There’s a Solution!

The difficulty of obtaining and maintaining auto insurance is becoming prevalent for Hyundai and Kia owners in Kansas and Missouri. In this article, we’ll help you understand why rates are climbing and what you can do to get coverage.

Theft Issues and Vehicle Vulnerability

Theft-related issues, primarily concerning vehicles produced between 2011 and 2021. Models like the Kia Soul and Sorento, as well as the Hyundai Tucson and Elantra, have been particularly susceptible to theft due to security vulnerabilities. These vehicles lack engine immobilizers, making them easy targets for thieves armed with nothing more than a screwdriver and a USB cable.

Major auto insurance providers have begun raising premiums or declining to issue new policies for most Hyundai and Kia models. The rationale behind this decision was to mitigate the heightened risk associated with insuring these vehicles. Many vehicle owners are reporting significant increases in their policy renewal premiums.

Software Upgrades and Their Challenges

In response to the theft problem, Kia and Hyundai have been rolling out software upgrades designed to prevent hotwiring by thieves. However, the upgrade is voluntary and must be completed at a Hyundai dealership. While this initiative is commendable, millions of vulnerable vehicles have yet to receive the update. Consequently, theft rates remain high in many areas, especially Kansas and Missouri.

The Solution

The good news is, we are still able to write new policies for many Kia and Hyundai owners! Your first step is to assess if you qualify for the free dealership security upgrade through a quick google search of your car's year, make, and model. Most Hyundais and Kias will qualify. If you qualify, you’ll want to get on the schedule with your closest dealership to get the update done. Once you’ve completed the upgrade, contact Family Union Insurance, and we’ll shop for you to find the best rates and coverages for you.

If you find that you do not qualify for the free security upgrade, but your vehicle has a push start, still reach out to us. We’ve been able to help many Hyundai and Kia owners stuck in the middle of these security system issues.

Don’t pay too much or spend all your time searching for auto insurance in Kansas City and reach out to Family Union Insurance!

Phone: (816) 287-8597

Email: service@familyunioninsurance.com

State Farm Insurance's Impact on Bay Area Community

Limited Buyer Pools and Mortgage Buyers

State Farm's decision to cease accepting new applications is likely to lead to limited buyer pools in heavily-wooded areas. This will affect buyers getting a mortgage, as lenders need to ensure buyers have adequate insurance coverage.

Private Fire Insurance for Luxury Properties

Private fire insurance, an alternative for buyers of luxury properties, may also be drying up. The lack of insurers willing to cover fire damages may make it more difficult for homebuyers with mortgages to find affordable cover, putting them in a precarious situation.

Impact on Small Business Owners

Entrepreneurs in the Bay Area, such as small business owners, may be negatively affected by State Farm's move. With fewer companies in the mix, insurance rates could increase, hampering the potential of the sector.

Factors Driving State Farm's Decision

According to Department of Insurance Press Secretary Gabriel Sanchez, factors driving State Farm's decision are beyond the state's control. These include climate change, reinsurance costs affecting the entire insurance industry, and global inflation.

Need for Innovative Solutions and Consumer Interest

Insurance providers need to find innovative solutions to provide affordable and holistic coverage to their insureds. It is essential for the insurance industry to prioritize consumer's long-term interest above short-term financial goals.

Long-Lasting Effects and Sustainable Coverage

State Farm's decision could have long-lasting effects on the Bay Area's economy. Homebuyers and small business owners are likely to experience the brunt of the shift, with the latter potentially seeing a significant rise in their insurance rates. Insurers should review stricter community guidelines to ensure adequate coverage for those living in high-risk areas. Providing sustainable insurance coverage that is affordable should be the industry's primary focus.

Tips to Save Money on Auto Insurance Premiums

If you are like most people, you are always looking for ways to save money. One area where you may be able to save some money is on your auto insurance premiums. Here are some tips that may help decrease your auto insurance costs while still maintaining adequate coverage.

Drive Safely

The first and most important thing you can do to lower your auto insurance premiums is to drive safely. Nothing affects your auto insurance rates more than your driving record. Every time you are responsible for an accident or receive a moving traffic violation, you risk having your premium raised or your policy cancelled.

While you can't change your past driving history, you can make a commitment to drive responsibly going forward. Keep your speed down, always wear your seatbelt, and never drive under the influence of drugs or alcohol. Not only will these actions help keep you safe, but they may also help lower your insurance costs.

Increase Deductibles

Your auto insurance rates will decrease as you raise the deductible amounts on your policy. A deductible is the amount of any loss you must pay before the insurance company will cover damages. For example, if you have a deductible of $500 on your auto policy and have $2,000 worth of damage, you pay the first $500 and the insurance company pays $1,500. Deductibles are not available on liability only coverage.

Credit Scores

Most insurance companies use your credit history along with accidents, violations, age, and location to determine your premiums. Obtain a copy of your credit report and verify that the information is accurate. Bankruptcies, judgments, liens, late pays, and credit inquiries will cause your "credit score" to decrease and your premiums to increase.

Take Advantage of Special Discounts

Some companies offer "good student" discounts to young drivers with good academic records. Generally, a B average is required to qualify. Others offer discounts for insuring two or more cars, buying both auto and homeowners coverage, or special features that lower accident risk, like a security system or Ring doorbell.

Shop Around

Another way to lower your auto insurance premiums is to shop around for the best rates. You can increase your odds of getting the best insurance "deal" by getting information about rates, coverage, and service from a number of companies.

There are several websites that can provide instant quotes for auto insurance. However, be wary of buying auto insurance directly over the Internet without an agent to compare carriers and make sure you’re getting the best rate. To simplify, call Family Union Insurance and we can shop for you, compare carriers, and make sure you’re getting the best rates for you.

Conclusion

Lower your auto insurance premiums in Kansas City, Missouri may seem overwhelming, but following these tips may help make it easier. Remember to drive safely, consider increasing deductibles, check your credit score, take advantage of special discounts and most importantly, have an agent shop for you!