South Korean automaker Hyundai has announced plans to launch its own branded insurance carrier, following similar moves by Tesla, Honda, and General Motors. The company recently filed a trademark application with the U.S. Patent and Trademark Office for “Hyundai Secure+,” which is described as covering “insurance services; underwriting and administration of property and casualty insurance, including automobile insurance providing coverage for property damage and third-party liabilities.”
This step comes after Hyundai agreed to pay $9 million in a settlement with attorneys general from 34 states regarding the sale of vehicles lacking industry-standard anti-theft devices. Insurers had previously restricted coverage following an increase in thefts involving Hyundai and Kia models.
Industry observers suggest that Hyundai’s entry into the insurance market is motivated by more than just legal issues. Economic factors are also significant, given that auto insurance premiums have increased over 40% since 2019, while insurers spend up to 20% of premium revenue on marketing and commissions.
“By bringing insurance in-house, auto companies can keep the marketing and commission costs down and/or share some of that with dealerships,” said Guillermo Francisco Cornejo, a former executive at Hyundai Capital.
Cornejo also noted that traditional insurers have not yet adjusted their pricing models to reflect new technologies such as autonomous driving features present in modern vehicles. “By moving a little faster, original equipment manufacturers can help reduce insurance costs and sell more cars without taking underwriting losses,” he said. “Long story short, they get to sell more cars and keep the profits from insurance.”
Some analysts believe offering branded insurance allows carmakers to extend customer relationships beyond the initial sale by bundling products like financing, warranties, service plans—and now insurance—into one ecosystem.
“It enables them to streamline the dispute process and maintain control of the customer relationship,” said Chad Watwood, attorney at LawBike Motorcycle Injury Lawyers in Atlanta.
Tesla was first among automakers to enter this space in 2019 by using vehicle data for behavior-based pricing policies. Honda launched its own licensed insurer last year; Honda Insurance Solutions is integrated into its digital sales platforms for both Honda and Acura vehicles.
Not all manufacturers have established fully licensed carriers. Some continue partnering with traditional insurers: Ford works with Alset Insurance Services on Ford Insure; Rivian’s program uses Nationwide or Cincinnati Insurance Company; Volvo Car Financial Services acts as an independent agency rather than an insurer; Toyota collaborates with established providers at purchase time.
These initiatives aim to make buying coverage more convenient while leveraging telematics data—such as driver behavior—to set premiums instead of relying solely on traditional actuarial methods.
However, there are concerns about potential complications for consumers. Ben Galbreath, partner at Wallace & Turner Insurance in Springfield, Ohio commented: “It’s going to trigger a significant shift in the personal auto insurance market, and has the potential to complicate things. As more households end up with multiple vehicles insured through different carriers, policies will become more fragmented and complex. That creates challenges not just for consumers, but for traditional carriers and agencies, particularly when it comes to offering umbrella coverage.”
Galbreath explained that umbrella policies require specific underlying auto coverage criteria which may not always be met by manufacturer-issued policies. He added that reinsurers—who insure primary insurers—may scrutinize these new entrants closely: “Reinsurance companies closely evaluate many factors of primary insurers before allowing umbrella coverage to sit over them… As automakers enter the space, reinsurers will need to assess a range of new risk factors which could further complicate how and when umbrella coverage is offered across different providers.”
Insurify operates nationwide as a licensed digital agency connecting users with quotes from over 100 leading insurers using AI-driven comparisons tailored for each consumer’s needs according to its official website. The platform does not charge fees for personalized comparisons across categories like auto or home insurance and prioritizes user privacy by not selling personal information during this process . Snejina Zacharia leads Insurify within the insurtech sector and maintains licensing throughout all U.S. states, collaborating with top providers for exclusive discounts .
