Auto Insurance Companies' Response to Rising Car Theft Rates: Hyundai and Kia Vehicles without Immobilizers

Auto insurance companies Progressive and State Farm's decided to refuse policies for older Hyundai and Kia vehicles lacking immobilizers. According to the Highway Loss Data Institute, some 2015 through 2019 models of these vehicles are twice as likely to be stolen than other vehicles of a similar age. Additionally, this problem has become a social media trend in 2021, with car thieves filming their joyrides and even tutorials on how to steal the cars. The thefts have also become more expensive, with theft claims of Hyundai and Kia models spiking to more than thirty times their 2019 levels in Wisconsin. Therefore, it is not surprising that Progressive and State Farm have increased insurance rates and limited sales of policies on these models in certain geographic regions.

Prioritizing Safety and Security

The decision of these two companies would encourage other insurance providers to prioritize the safety of their clients and be more selective when writing policies for cars that are easy targets for criminals. Insurance companies tend to expand their market share, but this should not be at the expense of the security and peace of mind of their clients. The fact that other vehicles in these Hyundai and Kia model years have engine immobilizers installed and that these cars are lacking them should be seen as a red flag for insurance companies. Given that they price their policies based on risk levels, it becomes challenging for insurers to offer competitive rates for these models, especially in the market that has experienced explosive increases in the rate of thefts.

Improving Vehicle Security

Hyundai and Kia have taken steps to improve the security of their vehicles by offering free software upgrades and steering wheel locks to police departments and owners, respectively, while their dealerships install security kits for their customers. Auto theft not only results in financial losses for individuals but also increases the cost of insurance premiums for policyholders, making it a problem for everyone in the industry. It is important to continue to develop and implement technology that protects cars and drivers from theft to save individuals from financial losses and reduce auto insurance premiums for everyone.

Save on Home Insurance Premiums with a Security System | Family Union Insurance

Home Insurance and Security Systems

Home insurance is an important aspect of homeownership, not only because it provides financial protection in the event of loss or damage to one's property, but also because having a policy in place is often required by mortgage lenders.

Save on Home Insurance Premiums

Many homeowners may be unaware that there are ways to save on their home insurance premiums by taking proactive measures to protect their property. One such measure is installing a security system, which can potentially provide discounts on home insurance policies.

Discounts for Security Systems

Insurance companies may offer discounts to policyholders who have specific safety devices installed in their homes, including security systems. These systems come in all shapes and sizes and can include video surveillance cameras, door and window sensors, and motion detectors. The goal is not only to deter potential burglars but also to alert homeowners of an intrusion. By offering discounts for these types of systems, insurers are incentivizing homeowners to take proactive measures to protect their properties, which can ultimately save them money.

Additional Safety Devices

In addition to security systems, insurance discounts may also be available for safety and anti-theft devices such as smoke detectors, fire alarms, and sprinkler systems. Homeowners who have these devices installed and monitored may also be eligible for insurance savings. It's worth noting that these discounts will vary by insurer, and it's important to speak with your insurance agent to understand the specific discounts available to you.

The Value of a Security System

While the financial benefits of a security system discount can be enticing, the true value of having a security system lies in the potential loss it could prevent. Burglaries and other property crimes can be devastating financially and emotionally, and the average loss from a single burglary is over $2,000. By investing in a security system, homeowners can have peace of mind knowing that they've taken proactive measures to protect their homes and potentially avoid the trauma and loss associated with a break-in.

Additional Benefits of Security Systems

Beyond protecting against property crime, security systems can also offer additional benefits such as fire and smoke protection. Monitored smoke detectors and fire alarms can help alert homeowners and emergency services to potential fires, allowing for faster response times and hopefully preventing further damage. Some security systems can also include water sensors that detect leaks or warn of malfunctioning HVAC systems, providing an added layer of protection against water damage.

Take Steps to Protect Your Property

It's important for homeowners to take steps to protect their properties, not only to potentially save money on insurance premiums but also to safeguard against potential losses. Investing in a security system or other safety devices is one way to do this and can provide peace of mind knowing that proactive measures have been taken to protect one's home. Speaking with an insurance agent is a great way to understand what discounts may be available for specific devices and to ensure that your home insurance policy is providing adequate coverage.

Contact Us for More Information

If you’re a current client or interested in saving some money on your home insurance policy, reach out to us for a security system referral or to see what discounts are available to you!