Two insurance companies refuse to cover some Kia and Hyundai drivers | News

MEMPHIS, Tenn. — Ashley Stewart woke up on Friday to learn her 2021 Kia Sorrento was missing.

“I was shocked,” she said. “I was kind of numb.”

Stewart was grateful to have insurance, but not every Kia driver can say that. Progressive and State Farm have stopped covering drivers of certain Kia and Hyundai models in parts of the country, according to CNN.

“I’ve never seen anything like this,” said Shade Sullins, an independent agent who co-founded A and S Insurance Solutions. “The rate for theft coverage has gone up dramatically.”

A spokesman for State Farm told FOX13 that the company has “stopped accepting new customer applications in some states” for certain models of Hyundai and Kia vehicles because of the high theft.

However, there is no indication this is happening in Tennessee just yet.

“(The state) not been notified by either State Farm or Progressive about plans to discontinue coverage for owners of these vehicles who might live in Tennessee,” wrote a spokesman for the Department of Commerce and Insurance in a statement.

In statements to FOX13, representatives from both Kia and Hyundai said they regret the decision by certain companies to not insure their customers. Both companies also stated their vehicles now have engine immobilizers and that they have distributed wheel locks to law enforcement.

According to the Memphis Police Department, criminals stole 1,822 Hyundai vehicles and 1,725 Kia vehicles in 2022.

Thankfully, Stewart’s truck was found on the expressway days after it was stolen.

However, she told FOX13 she will think twice about her next vehicle purchase.

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Toronto carjackings: Could auto theft increase insurance?

An industry expert says a surge in carjackings in the Greater Toronto Area along with ongoing car thefts from driveways and parking lots could put pressure on some insurance companies to consider raising their premiums.

“There have been 93 carjacking incidents that have occurred in Toronto so far this year. That’s compared to 21 over the same period last year, so that is almost a 400 per cent increase year-over-year,” said Aren Mirzaian, CEO of My Choice, an insurance comparison website.

The company said in the last 30 days there have also been 404 car thefts in Brampton and Mississauga alone, which is approximately 13 vehicles a day.

According to My Choice, there were 20,767 auto theft claims in Canada in 2020 with payouts of $346.7 million dollars, but with rising theft and carjacking incidents the payouts are expected to be higher this year.

Throughout the pandemic car insurance premiums have remained relatively flat and some companies even gave rebates to their customers, but as car thefts and carjackings increase some companies may need to raise rates to cover their costs.

“If there are more theft claims associated with a particular model or location then insurance companies may have to charge more for that location to offset those claims,” Mirzaian said.

According to My Choice the five most expensive cities for car insurance in Ontario are now Vaughn, Ajax, Brampton, Mississauga and Toronto.

The five cities with the most car thefts are Hamilton, Vaughn, Brampton, Mississauga and Toronto.

With auto thefts on the rise it’s important to know that basic car insurance policies provide liability coverage, but not coverage for theft. For that you’ll need additional coverage such as comprehensive, specific perils or all perils coverage.

“That type of endorsement is going to help replace a stolen vehicle, it’s

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Car Insurance Company Must Pay $5.2 Million To Woman Who Got STI In A Hyundai Genesis

A man in a car licks a woman's leg

The insurance company has been ordered to pay the damages. Image credit: Kiselev Andrey Valerevich/shutterstock.com

A car insurance company has to pay $5.2 million to a woman who claims she caught a sexually transmitted infection (STI) in a Hyundai Genesis.

The woman, from Missouri, claims that she caught the STI from her ex-boyfriend in his car, which was insured by GEICO General Insurance Company. The case alleged that the man had not disclosed his infection with the human papillomavirus (HPV).

Last year, the arbitrator said that the sexual intercourse in the car had “directly caused, or directly contributed to cause” the infection, and found that the man was liable for not disclosing his infection status to the claimant. She was awarded $5.2 million in damages, to be paid for by the boyfriend’s insurance company, GEICO.

The insurance company sought to overturn this through the Missouri Court of Appeals, claiming that the decision was not in line with Missouri law, as Yahoo News reports. However, the three-judge panel agreed with the earlier ruling, meaning the company will now have to pay for the ex-boyfriend’s damages on his behalf.

“If you think about it as an injury sustained while in that person’s vehicle, then it totally falls within what an insurance company would be required to pay,” personal injury attorney Miguel Custodio told company.html”Mail Online.

“Usually, injuries to passengers are the result of a collision, or slamming the door on one’s fingers, that sort of thing. But while a lawsuit over contracting an STD from the insured driver may be the first of its kind, this award shows that it’s not a stretch for someone to file against an insurance company for any actions occurring in a motor vehicle.”

He added that the ruling could set a precedent

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No More 90210: Doug Ford promises Ont. insurance reform, calls for end to postal code pricing

Toronto, Ontario – During a press conference Thursday, June 30th, Ontario Premier Doug Ford suggested that insurance premiums predicated on postal codes may be coming to an end. The insurance industry’s practice of pricing based on location represents unfair gouging of consumers, according to Ford.

“I know we’re working on a plan for insurance companies, as far as I’m concerned, that’s totally unfair for the people of Brampton, of Scarborough–they’re going after these people based on their postal code,” said Ford .

This statement comes from a conference related to recent gas tax cuts implemented to help Ontario drivers. This focus on driver-friendly policies seems to be a staple of the Ford government. Ford has already implemented the removal of license plate renewal fees, and the tolls from some highways as well.

In the Ford government budget released in April, the Ontario PC party promised that insurance reforms would give Ontario residents more options when it comes to their car insurance. “Insurance companies are making tons of money and it’s coming out of the pockets of Ontarians. So, we’re going to be all over them,” said Ford.

For Ford, the proposed insurance reform comes down to an issue of fairness.

“They have to treat people fairly right across the board,” says Ford.

There is currently no timeline on when Ontarians could see a change in their insurance rates. However, at least with Ford focused on the issue, Ontario drivers can hope for a change.

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3 Ways Insurance Marketers Can Improve CX

The insurance industry is no stranger to digital transformation, but it’s filled with pain points that insurance marketers must address.

According to an EY reportmore customers are going online to make purchases, including for insurance coverage.

More than half of those surveyed said they were willing to buy homeowners insurance online, up from 45% three years ago. And 33% said they’d buy car insurance online, rising 10% since 2018. Shoppers can also find other types of insurance online — renters, natural disaster, health, identity theft, etc.

This move to digital from agent-driven sales is only one of the pain points the insurance industry faces in trying to provide excellent CX in a very competitive industry. Below are three ways to address this paint point (and others) and offer better CX.

1. Collect and Leverage Customer Data

According to Jeff Piotrowski, market leader, insurance at Verisk Marketing Solutions, the insurance industry is locked in a race to offer the same products and services at the lowest costs. Why? Because more consumers are comparison shopping online, seeking out savings.

But instead of succumbing to razor-thin margins, he added, industry leaders are creating better experiences by leveraging what they know about existing and prospective customers.

“Rather than sending thousands of emails to thousands of contacts and hoping something sticks,” said Piotrowski, “focus your resources on people who are best suited to your products and most likely to complete a purchase in the near future. This requires access to real-time, third-party data and the ability to reconcile that data with contacts that are already in your CRM.”

Such a strategy also opens the door to a true omnichannel approach. Insurers can meet customers in market — when and where they’re searching — and also allow them to pick up the phone

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Maritimers renting out personal cars to earn extra cash

As costs continue to rise, many are looking for a side hustle to make some extra cash, and some have been turning to their personal cars.

Chanel Pearson began renting out her 2015 Toyota Corolla through the website turo.com/”Turo.com about a month ago. The service works similar to Airbnb, but for cars.

“I had overheard a lot of conversations of people saying their relatives were trying to come into town. They could not find a rental car anywhere,” said Pearson, a Halifax resident.

Now, her vehicle is nearly all booked for summer.

“I had a request within one minute of posting it,” she said. “I had a request probably every five minutes within the first hour of posting it and that continued on for the first whole week. My phone was blowing up.”

One interested person was Liz Wagman, who is living in Halifax but does not have a car. She says she wanted to explore Cape Breton for the Canada Day weekend.

The trouble was however, rental cars were all booked, which led her to connect with Pearson online.

“Chanel had some great reviews. The car, the photos of the car looked like it was in pretty good condition,” Wagman said. “But like with everything, Airbnb or Facebook marketplace you gotta put a little bit of trust in people.”

The vice president and head of Turo Canada, Cedric Mathieu, said the company has been running in Nova Scotia since 2019, and about a month and a half ago it launched in New Brunswick, PEI and Newfoundland and Labrador.

“We’ve seen more than 2,000 trips being booked within the first month of the launch,” Mathieu said.

Vehicles signing with Turo have to be less than 12-years-old, have fewer than 200,000 kilometers, and must go through an inspection.

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Ontario car insurance rates based on postal codes will ‘come to an end,’ Doug Ford suggests

Ontario Premier Doug Ford suggested Thursday that car insurance rates based on postal codes will “come to an end.”

Ford made the remarks during a press conference highlighting his government’s promised gas tax cut, which is set to take effect Friday.

The premier was asked why the government wasn’t focusing more on high insurance rates, since gas prices may still increase overall in the coming months despite the temporary tax cut.

Read more:

Who is paying the highest insurance premiums in Ontario, and why?

“I’m going to respectfully disagree with whoever says cutting the gas tax by 10 cents overall doesn’t affect and help the people of Ontario. It helps them in a massive, massive way,” Ford said.

“I know we’re working on a plan for insurance companies,” he continued.

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Click to play video: 'Gas tax cut for Ontario set to take effect Friday'







Gas tax cut for Ontario set to take effect Friday


Gas tax cut for Ontario set to take effect Friday

“As far as I’m concerned, it’s totally unfair to the people of Brampton or Scarborough that they’re going after these people based on their postal code. That’s going to come to an end real quickly.”

Ford said insurance companies must “treat people fairly right across the board.”

“Insurance companies are making tons of money and it’s coming out of the pockets of Ontarians. So we’re going to be all over them,” he said.

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Ontario Tories want ‘more options’ for car insurance customers

In the Progressive Conservative budget released in April, which doubled as a party platform for the June election, the government said they intended to propose changes that would allow for consumers to have “more options” when purchasing

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