Millions of Hyundai and Kia owners today became eligible for free anti-theft repairs and even cash payments following a far-reaching settlement that, among other things, required the automakers to close a security hole that had ripened into a major contributor to an epidemic of car thefts nationwide. The deal comes after years of pressure from law enforcement, regulators, and insurers, who have been calling for action since viral theft tutorials taught would-be thieves how to take off with the models that lack modern engine immobilizers.
Who Qualifies and What’s Covered in the Settlement
Eligibility covers a broad span of Hyundai and Kia vehicles equipped with mechanical key ignitions and constructed during the early 2010s through roughly the mid-2020s. The National Highway Traffic Safety Administration has said previously that the pool of potentially affected vehicles numbers more than 8 million, one of the biggest theft-mitigation campaigns in the U.S. auto market.
Owners or lessees of affected models can have a no-cost hardware upgrade: a stronger ignition-cylinder protector made of zinc that is intended to frustrate the quick “break-and-start” method popularized on social media. That’s on top of previous software updates that altered alarm timings and necessitated the key to be in the vehicle before it will actually start. The settlement provides consumers with a multi-year period within which to bring the upgrade to authorized dealers.
Consumers whose cars were stolen or damaged may be eligible for restitution under the settlement. In addition to the $200 million class-action resolution — which also covered theft-related expenses, such as insurance deductibles and towing — the settlement provides for up to $4.5 million in direct restitution payments to affected owners and another $4.5 million to participating states for investigative costs. When the cost of repairs and outreach is added, state officials say that the total price tag could top $500 million.
Looking forward, Hyundai and Kia have announced that they would make engine immobilizers standard on all new U.S. models, placing it in line with industry practices. In the mid-2010s, less than a quarter of their U.S. vehicles contained immobilizers, compared with about 96% for other automakers, state attorneys general have said.
How the Theft Risk Arose and Spread Nationwide
The thefts were part of a wave of such heists fueled by online videos that demonstrated how to start particular models after peeling off the steering-column shroud and turning the ignition with a USB plug. Several city police departments reported jumps that overwhelmed investigators as well as insurers; Chicago officials, for example, said thefts had risen 767 percent in a relatively short period during the height of the trend, while cities like Columbus, Ohio, posted daily totals in the double digits.
The Highway Loss Data Institute said theft claims for some models of Hyundai and Kia that were affected were about double the industry average, highlighting how the lack of immobilizers increased vulnerability.
State attorneys general said the automakers had failed to incorporate readily available anti-theft technology, and that omission helped lead to an increase in thefts.
What Owners Can Do Now to Protect and Claim
Verify your vehicle identification number by visiting a local Hyundai or Kia dealer or contacting the brands’ customer-service hotline to ensure eligibility. Ask for the free software security update, as well as a complimentary hardware protector; both were created to complement each other in an effort to mitigate the most common exploit. These services should be performed free of charge to the owner.
If someone stole or damaged your car, collect documents including a police report, insurance claim records, repair bills, and evidence that you own the vehicle. The settlement creates a process for filing claims to get restitution. Keep copies of everything, and mark any claim deadlines that are included in documents you receive. Although notices will be sent to many owners, there is no reason to wait for a letter to contact your dealer about a repair.
Owners can also supplement with practical steps:
- Use a steering-wheel lock.
- Park in well-lighted areas or locked garages.
- Enable aftermarket tracking if such an option exists.
Several states tightened underwriting temporarily for the most targeted models; proof that security upgrades have been installed can aid coverage and rates.
Broader Significance for Automakers and Drivers
The settlement effectively ends a hodgepodge of state investigations and speeds the introduction of immobilizers across new lineups. It also answers pressure from cities that sued the automakers, contending scarce public resources were sapped by a preventable security gap. The repairs and new-vehicle standards could result in less severe losses for insurers, helping to moderate premiums in high-theft markets.
Perhaps most important for drivers, the plan paves a way to harden vehicles already on the road. With a strengthened ignition cylinder and software that detects the presence of a key, Hyundai and Kia are plugging the hole exploited in numerous thefts. Owners who don’t procrastinate could minimize exposure right now and, if they were victimized, seek compensation through the settlement’s pipeline.
Bottom line: If you own or lease a qualifying Hyundai or Kia, schedule the free anti-theft upgrade, save your paperwork, and follow state or automaker instructions for any claims.
The fixes are there, the procedure is established, and the security gain is immediate.
