The Insurance Conundrum: Why Some Carriers are Reluctant to Insure Kia and Hyundai Cars

The Insurance Conundrum: Why Some Carriers are Reluctant to Insure Kia and Hyundai Cars

August 24, 2023

In recent years, a puzzling trend has emerged within the insurance industry: several carriers, including State Farm, Founders, and Commonwealth, have become increasingly hesitant to insure certain Kia and Hyundai car models. This unexpected development has left many car owners in Ohio perplexed and seeking answers. 

Security Concerns and Higher Theft Rates of Kia & Hyundai Cars

One of the primary factors leading insurance carriers to drop coverage for specific Kia and Hyundai models is the historical reliability of these vehicles. While Kia and Hyundai have made significant strides in improving their cars' reliability over the years, some older models still carry a reputation for mechanical issues and frequent breakdowns. Such unreliability can result in higher insurance claims, leading insurers to view these models as a higher risk.

Insurance carriers often rely on statistical data to assess risk and determine premiums. If a particular car model has a history of more frequent claims or higher repair costs, it may be deemed less insurable or subject to higher premiums. Unfortunately, this has resulted in some insurers being hesitant to provide coverage for certain Kia and Hyundai models.

Safety Concerns

Another crucial aspect influencing insurance carriers' decisions is vehicle safety. Insurers place great emphasis on safety ratings and features when evaluating risk. While Kia and Hyundai have made notable advancements in this area, some models may not meet the stringent safety standards set by insurance companies.

If a car lacks essential safety features or has a history of poor safety ratings, insurance carriers may perceive it as a higher risk. This perception can lead to limited coverage options or higher premiums for car owners. As a result, insurers may choose to drop coverage altogether for specific Kia and Hyundai models until they meet the desired safety criteria.

Repair Costs and Availability of Parts

Repair costs and the availability of parts also play a significant role in insurance carriers' decision-making processes. If a car model requires expensive repairs or has parts that are difficult to source, insurers may face challenges in managing claims efficiently. Consequently, carriers may be more inclined to drop coverage for these models to mitigate potential financial risks.

Furthermore, the cost of repairs and parts can directly impact insurance premiums. If a particular Kia or Hyundai model has a history of costly repairs or uses expensive parts, insurers may increase premiums to offset potential expenses. This, in turn, can make coverage unaffordable for some car owners, leading them to seek alternative insurance options.


The decision of insurance carriers to drop coverage for certain Kia and Hyundai models is rooted in several factors, including historical reliability concerns, safety considerations, and repair costs. While it is unfortunate for car owners who own these models, it is essential to remember that not all insurance carriers share the same policies. It is advisable to explore alternative insurance providers that may be more willing to insure these vehicles.

If you find yourself in a situation where your current carrier is reluctant to insure your Kia or Hyundai, consider reaching out to us here at Kinder's Insurance.  We may have a more comprehensive understanding of the improved reliability and safety features of newer Kia and Hyundai models, offering coverage options that align with your needs.