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IMO, this should be illegal for State Farm to do. Insurance is required in the US. Hyundai has built cars they can legally sell in the US. I feel like the gove
by avgDev 4y ago
IMO, this should be illegal for State Farm to do.
Insurance is required in the US. Hyundai has built cars they can legally sell in the US. I feel like the government has dropped the ball on this one, immobilizers should be required in all vehicles.
What if other insurers follow this move, and owners cannot insure their cars?
This actually shows how silly a law requiring insurance with only private options is.
- eschneider 4y agoIn most places LIABILITY insurance is required, not theft/comprehensive. I expect you'll still be able to find liability insurance for those models even if nobody wants to insure them for theft.
- Broken_Hippo 4y agoIf I remember correctly, a lot of loan companies require more coverage than that, though. If you can't insure them, you probably won't get a loan.
- to11mtm 4y agoWhich -does- raise questions about a diminished value claim by the owners, since the resale value will reflect that.
- avgDev 4y agoThat is a good point. However, lenders do require comprehensive, I wonder how they would feel about this if there is an existing loan on a vehicle and it becomes uninsurable.
- tomxor 4y agoI believe theft still falls under liability AKA "3rd party" _if_ it causes damage to others. "Theft" as an insurance type compensates the owner which is optional.
- kube-system 4y agoTechnically, insurance is not "required in the US", there is no federal requirement, it is required in 49 states. And there are plenty of other reasons that someone may not be insurable.
- voisin 4y agoWhich state doesn’t require it?
- chucksta 4y agoI wanted to know, New Hampshire. https://www.nerdwallet.com/article/insurance/states-not-require-car-insurance https://www.nerdwallet.com/article/insurance/states-not-requ... Looks like Alaska provides exemptions too
- kube-system 4y agoGood ol' New Hampshire. No insurance and no seatbelts needed! And technically Virginia doesn't require insurance because you can opt out by paying a $500 fee, but at that point you might as well get some cheap car insurance. (and beyond this you can 'self insure' in even more states)
- nekoashide 4y agoThey want evidence an immobilizer is installed, so with a simple modification people can get insured. But I'm not sure the government can force an insurance company to cover a vehicle anyways.
- eduction 4y agoIt looks like owners can add an immobilizer. The article quotes a State Farm document saying the vehicles become eligible if a "sales associate has verified the presence of a passive engine immobilizer." This article indicates the cost of a retrofit including labor is about $250: https://getjerry.com/questions/how-do-you-install-an-immobilizer-on-your-car https://getjerry.com/questions/how-do-you-install-an-immobil...
- themadturk 4y agoState Farm is a company, and in business to make a profit. They aren't abandoning current customers, just putting the brakes on coverage for new customers with affected makes and model years.
- flandish 4y agoIt’s simply because the insurance corporation is a corporation - and corporations exist to provide shareholder value before they provide customer service or labor rights. Literally any decision a corporation makes is marketing for profit or a hedge against loss.