Michigan says insurers must offer coverage for Kia, Hyundai vehicles despite increased thefts
(CBS DETROIT) - The Michigan Department of Insurance and Financial Services (DIFS) says insurers must offer auto insurance for all eligible Michigan drivers after some companies said they would temporarily halt writing new policies for certain Kia and Hyundai vehicles.
In a statement back in January, State Farm said it would stop accepting new policies for "certain model years and trim levels of Hyundai and Kia vehicles because theft losses for these vehicles have increased dramatically."
The issue is related to makes and models from 2015 to 2019.
DIFS says under state law, insurers can only deny, refuse to continue or limit insurance coverage to Michigan drivers "for certain types of vehicles under defined circumstances," according to a press release.
"Theft trends nationwide show that some types of vehicles, including certain Kia and Hyundai models, may face an increased vulnerability to theft," DIFS Director Anita Fox said in a statement. "In other states, some insurers have attempted to deny or limit auto coverage for these vehicles. Our new bulletin clearly states that such actions are not allowed in Michigan. DIFS will continue to ensure that every eligible Michigan driver can get the auto insurance they need to legally drive on Michigan roads."
Drivers who own certain Kia and Hyundai models may qualify for a free software update limiting chances of theft, according to the National Highway Traffic Safety Administration.
Anyone who believes they are being denied auto insurance or received a limited option due to the vehicle's make and model is asked to contact DIFS' Office of Consumer Services at 877-999-6442, from 8 a.m. to 5 p.m. Monday through Friday, or email at DIFSComplaints@michigan.gov.
DIFS says it may take regulatory action if insurers fail to follow the law.
For more information, visit Michigan.gov/AutoInsurance.
