The theft of older models of Hyundai and Kia that lack critical anti-theft devices could result in losses of up to $600 million for the U.S. insurance industry.
Liberty Mutual, Nationwide, American Family, and 65 other insurers estimate that their payout to affected owners could exceed $300 million, with $190 million already paid out.
These insurers have filed a lawsuit in U.S. District Court in Orange County, Calif., seeking reimbursement from Hyundai and Kia for funds paid to owners for replacement or repair of stolen or damaged vehicles.
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The insurers claim that the cost of repairing windows and steering columns damaged during theft attempts can exceed $3,000. Stolen vehicles used for joyrides or other crimes can incur damages of over $10,000, and if not recovered, can result in a total loss of up to $20,000.
Hyundai and Kia have acknowledged that some of their vehicles on the road in the U.S., particularly base trim or entry-level models, lack push-button ignitions and anti-theft devices (engine immobilizers). However, the insurers’ lawsuit demonstrates the extent of the problem faced by the companies, which started with a TikTok video and has now become a nationwide legal issue.
One victim of this theft, Alex Gerwer, had his daughter’s 2019 Hyundai Tucson stolen and deemed unrecoverable by their insurance company, Geico. The offered payout of $23,000 was deemed inadequate by Gerwer as it did not replace the car with a similar model nor reimburse the remaining warranty. Gerwer is skeptical that any award will truly compensate the victims of Hyundai’s negligence.
Source: AutoNews (Subscription Required)
