The Security Flaw
Kia and Hyundai sold roughly nine million US vehicles from about 2011 onward without engine immobilizers — the anti-theft chips, standard on most modern cars, that stop an engine from starting without the correct key. Thieves discovered the cars could be started in seconds using little more than a USB cable, and instructional videos spread the technique under the name the “Kia Challenge.” Thefts of the affected models surged in cities across the country, and safety regulators linked the trend to crashes and deaths.
The result was stolen cars, wrecked vehicles, higher insurance costs and, in some places, insurers refusing to cover the models at all.
The Settlement
The automakers agreed to a class-action settlement valued at about $200 million. It provides a free software update to add anti-theft protection for eligible vehicles; for cars that cannot take the update, owners can be reimbursed around $300 for anti-theft devices like wheel locks. Owners whose vehicles were stolen and totaled can claim up to roughly $6,125, and those with theft-related vehicle or property damage up to about $3,375, plus other out-of-pocket costs like insurance deductibles and rental cars.
This consumer settlement is separate from the automakers’ agreements with government regulators over the same theft problem.
What Owners Should Know
If you own an affected Kia or Hyundai, get the free anti-theft software update installed at a dealer, and keep records of any theft, police reports, insurance claims and repair bills, which support a settlement claim. Until your car is updated, a steering-wheel lock is a cheap, visible deterrent. Verify any claim details through the official settlement administrator.
Before You Act
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Kia and Hyundai Theft Lawsuit: The $200 Million Settlement: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
Why were Kia and Hyundai cars so easy to steal?
About nine million US vehicles from roughly 2011 onward were built without engine immobilizers, so thieves could start them in seconds with a USB cable — a method spread online as the 'Kia Challenge.'
What does the Kia/Hyundai theft settlement provide?
A roughly $200 million settlement: a free anti-theft software update, about $300 reimbursement for anti-theft devices where the update is not possible, up to ~$6,125 for stolen totaled vehicles and up to ~$3,375 for theft damage, plus other costs.
How do I protect my car now?
Get the free anti-theft software update at a dealer, use a visible steering-wheel lock until then, and keep records of any theft, police reports and insurance claims for a settlement claim.
Legal Disclaimer
This article is general legal information, not legal advice, and does not create an attorney-client relationship. Case status, eligibility criteria, and any amounts described are as reported at the date shown and may change. Consult a licensed attorney in your jurisdiction about your own situation.