From Affordability to Expense: Why Insurance Is Costlier for Kia and Hyundai Drivers

Why are Kia and Hyundai insurance rates so high? In recent years, Kia and Hyundai have become known for offering affordable, stylish vehicles. However, many drivers are surprised when they go to insure these vehicles and are hit with unexpectedly high insurance premiums. What’s behind the rising cost to insure these otherwise budget-friendly cars?

1. THEFT RISK HAS SKYROCKETED

One of the biggest factors contributing to higher insurance rates for certain Kia and Hyundai models is a surge in thefts. A viral TikTok trend in 2021 and 2022 exposed a security flaw in many Kia and Hyundai vehicles made between 2011 and 2021. These cars lacked electronic immobilizers a standard anti-theft device in most modern vehicles making them particularly easy to steal using basic tools.

The so called “Kia Boyz” trend led to an explosion in car thefts across the U.S., with some cities reporting theft increases of over 1,000% for affected models. As a result, insurers began to categorize these vehicles as high-risk, driving up premiums or even refusing coverage in some regions.

2. REPAIR COSTS AND SAFETY RATINGS

While Hyundai and Kia have improved dramatically in build quality, some models have higher than average repair costs after accidents, especially for trim levels with advanced technology and safety features. Additionally, not all models have top-tier crash test ratings, which insurers factor into how much they charge.

3. POPULARITY AMONG YOUNG DRIVERS

Kia and Hyundai vehicles particularly models like the Kia Forte, Kia Soul, Hyundai Elantra, and Hyundai Sonata are popular choices for younger drivers due to their affordability. However, insurers often view younger drivers as higher-risk, and this demographic’s driving habits can influence claims data and premium rates for these vehicles.

4. INSURANCE COMPANY REACTIONS

In response to the surge in claims from theft and accidents, some major insurers have temporarily paused issuing new policies for certain Kia and Hyundai models in high-theft areas. When coverage is available, it often comes with significantly higher premiums to offset the risk.

5. WHAT CAN YOU DO

If you own one of the affected vehicles or are considering buying one, here are a few steps that many help lower your insurance rate:

• Install anti-theft devices like a steering wheel lock or GPS tracker.

• Check for software updates – Hyundai and Kia have released theft deterrent for many vehicles.

• Compare quotes from multiple insurers to find the best rate.

• Ask about discounts for bundling policies or safe driving habits.

Kia and Hyundai vehicles remain a smart buy for many drivers, but recent theft trends and insurance industry reactions have made inuring them more expensive. As the automakers continue to implement fixes and anti-theft measures, insurance rates may eventually normalize but for now, it pays to do your homework before you buy or insure one of these popular vehicles.