Hyundai Collaborates With AAA to Insure Cars Prone to TikTok Thefts

This issue has become severe to the extent that some insurance companies are declining coverage for Hyundai and Kia vehicles vulnerable to such thefts. Hyundai apologized to affected customers earlier this year for the inability to insure their cars due to the theft risks; however, a mere apology has limitations. Now, Hyundai has announced a collaboration with AAA to provide an insurance solution for drivers with cars that were otherwise deemed uninsurable.

Earlier this year, both State Farm and Progressive opted not to insure the millions of Hyundai and Kia vehicles that utilize a traditional physical ignition key without an anti-theft immobilizer. The frequency of vehicle thefts had risen significantly, leading to various cities filing lawsuits against the automakers due to the surge in thefts. City officials argue that Hyundai and Kia compromised public safety by neglecting to incorporate immobilizers in their vehicles for profit motives.

To illustrate the scale of the problem, State Farm added the following models to its restricted list in February:

Hyundai’s new alliance with AAA will enable affected owners to insure their vehicles if their current insurer declines to issue a new policy or refuses to renew existing ones. However, residents in Alaska, Massachusetts, and Washington will not have this insurance option, as AAA does not operate in these states.

Hyundai has committed to rectifying most of the affected vehicles at no charge to the owners through a software update. For vehicles without an immobilizer that cannot receive the update, the automaker will reimburse owners for purchasing a steering wheel lock or assist in acquiring other anti-theft devices, such as an alarm system.

The automaker has also expedited the availability of the software update for impacted vehicles. Nearly all four million affected vehicles will be eligible for the software upgrade this week, which is approximately two months earlier than initially estimated by the automaker. Hyundai encourages customers who suspect they may be impacted to check the website for eligibility.

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