Kia owner insurance coverage struggles amid rising rates

KENOSHA, Wis. - When a car is stolen and crashed, its owner often takes a financial hit. But, what about the people who simply own a car thieves like to target? Contact 6 discovered, they’re paying for the thefts, too.

Since buying her car about two years ago, Jane Shinske in Kenosha says she’s had no tickets, no accidents and no auto insurance claims. So, why is she paying more to drive her car?

"[State Farm] told me it’s because I own a Kia, and they’re known for getting stolen and crashed," Shinske told Contact 6.

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Shinske says her 2020 Kia Forte has never been stolen. Still, she’s facing her second auto insurance rate increase in a year.

Shinske has auto and homeowners insurance through State Farm. Her homeowner's insurance costs about $10 a month. Back in November, Shinske paid State Farm $116 a month. By February, her bill was $139 a month. In August, it will be $210 a month. Jane works two jobs and says the increase is leaving her in "a horrible position."

"How do you expect people to afford this?" said Shinske. "I brought on extra hours from my part-time job to catch up on my bills, and now it’s going to my car, instead."

Kenosha Police report 20 thefts of Kia and Hyundai vehicles in 2022. So far this year, they report nine stolen Kia vehicles and one stolen Hyundai.

A State Farm spokesperson tells Contact 6, "State Farm considers a variety of factors to determine the most appropriate price for each policy. This includes continuously monitoring and adjusting to trends to make sure we’re matching price to risk." The spokesperson went on to say, "record inflation and supply chain disruptions" also continue to drive rate changes.

Shinske says she called four other auto insurance providers asking for quotes. Two providers told her they’d charge more or similar rates to State Farm. Two providers told her they couldn’t offer her coverage, period.

"We’re not going to take you because we do not insure Kia," Shinske recalls one representative telling her.

Shinske says one of the insurers was Progressive. A Progressive spokesperson tells Contact 6, "we have continued to insure our existing customers who own impacted models, but … have also limited our sale of new policies or increased rates in certain locations."

A State Farm spokesperson, likewise, said, "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."

The Insurance Information Institute (III) says the average auto rate in Wisconsin in 2019 was $767.42. A third of what Shinske will pay.

"Some insurers are finding that it’s too big of a risk to take on new customers with certain vehicles," said Scott Holeman, an III spokesperson.

According to the National Association of Insurance Commissioners (NAIC), Wisconsin has the third-lowest average auto insurance rate in the nation. The national average in 2019 was about $1,070.

In Shinske’s case, living in Kenosha seems to be working against her.

"It’s not my fault that Kias are getting stolen," said Shinske.

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Despite Shinske’s premium going up, State Farm may still be her best option.

"I might as well stay with State Farm because I’m not going to get a cheaper rate somewhere else," said Shinske.

Contact 6 reached out to Kia and Hyundai for this report but did not receive comment by deadline.

The Wisconsin Office of the Commissioner of Insurance (OIC) tells Contact 6, "We are aware of State Farm’s approach to covering Kia and Hyundai vehicles, and we are communicating with the company to learn more about the practice. If Wisconsinites encounter any issues with their insurance agent, adjuster, or company, they are encouraged to contact our office to file a complaint. They may contact OCI at 1-800-236-8517 or visit our website for more information."

Full statement from State Farm

"Due to our customer privacy policy, we’re unable to discuss to specifics of any customer’s policy. However, we can share State Farm considers a variety of factors to determine the most appropriate price to each policy. This includes continuously monitoring and adjusting to trends to make sure we’re matching price to risk. As more people are on the roads, we’re seeing an increase in claims. Auto claim costs are being compounded by record inflation and supply chain disruptions which continue to drive our rate changes. Despite these factors, our focus remains on being there for customers when they need us most. Customers are also encouraged to discuss their individual needs and discount options with their State Farm agent.

"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 problem impacting our customers and their entire auto insurance industry. We take seriously our responsibility to manage risk and the impact of excess claim costs on all our customers. In this case, it became necessary to take action to protect our policyholders and our business. We are monitoring this situation very closely and will adjust our approach as appropriate."

Full statement from Progressive

"During the past year we’ve seen theft rates for certain Hyundai and Kia vehicles more than triple and in some markets increase by a factor of almost 20. In response to this explosive increase in thefts, we have continued to insure our existing customers who own impacted models, but in fairness to our existing policyholder we have also limited our sale or new policies or increased rates in certain locations.

"We understand Hyundai and Kia have made voluntary software updates to certain vehicles. We’re hopeful this software upgrade will be effective at deterring thefts and strongly encourage our customers and the owners to get it as soon as possible. We will closely monitor manufacturers’ actions, consumer adoption rates, and the effectiveness of the updates and as appropriate will recalibrate our pricing and acceptance criteria accordingly."