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In recent months, there have been a number of high-profile car thefts involving Hyundai and Kia vehicles. These thefts have not only caused financial losses for car owners, but they have also had significant impacts on the insurance industry.

The Hyundai and Kia thefts have been particularly concerning because the thieves appear to be using sophisticated methods to steal the cars. In some cases, they are using devices to intercept the signals from the car’s key fob, allowing them to unlock and start the car without needing the physical key. This has made it more difficult for car owners to protect their vehicles and has resulted in a higher number of successful thefts.

In addition to the financial losses from the thefts, many have also experienced challenges with insurance as well.  Insurance companies have had to pay out claims for the stolen vehicles, and this has led to higher costs that are passed on to customers in the form of increased premiums.

Insurance companies have also had to reassess their risk assessments for Hyundai and Kia vehicles. Prior to the recent thefts, these vehicles were not considered high-risk, but the increase in thefts has caused insurers to reevaluate their underwriting practices. This has resulted many insurers refusing to insure them altogether.

Car manufacturers have also been impacted by the thefts. They have had to take steps to improve the security features of their vehicles to prevent future thefts. This has included the development of new technologies to prevent keyless thefts, such as signal-blocking pouches for key fobs or the use of biometric authentication.

Today, it is easy to pick up a few extra bucks turning your personal vehicle into a delivery service.  Whether it is dropping off food or giving someone a ride, digital companies are constantly developing new ways for average individuals to join the sharing economy.  However, from an insurance standpoint, in doing so you drastically change your personal auto insurance exposure potentially opening yourself up to significant financial loss.

When driving for delivery companies like DoorDash, UberEats, GrubHub, Uber, or Lyft this now becomes what insurance contracts refer to as a “livery” exposure, something typically excluded on auto insurance policies.  While insurance carriers have adapted policies to the sharing economy, not all of them have and often times it requires an endorsement to your policy to fill any gaps in coverage. 

Although you may have some liability protection under the parent entity you are delivering under, most contracts to not provide physical damage for your personal vehicle.  Coverage provided also depends on the company and the contract language you sign at start-up.  For example, DoorDash requires your personal auto policy limits to be exhausted first before they will pay; however, if your personal auto policy does not provide coverage for livery exposures, you are likely in trouble.

This is really important to consider before logging on the app and jumping in the car.  The same can be said for renting your home on AirBnB or Vrbo.  Make sure to talk to your agent about the potential coverage impacts to your policy BEFORE you start delivering.