The widespread theft of vulnerable older Hyundai and Kia models not equipped with a crucial anti-theft device could end up costing the U.S. insurance industry up to $600 million.
Liberty Mutual, Nationwide, American Family and 65 other auto insurers, which comprise only a fraction of the country’s insurance companies, estimate that just their portion of the payout to owners who have been affected by the social media-driven crime wave could top $300 million.
The insurers, who filed a lawsuit in U.S. District Court in Orange County, Calif., in March, say they have already paid out $190 million. They are demanding that Hyundai Motor America, Hyundai Motor Co., Kia America and Kia Corp. reimburse them for funds paid to owners for replacement or repair of damaged or stolen vehicles.
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