Kia, Hyundai Owners Could See Payouts in New $200M Class-Action Settlement Over Car Thefts

Kia and Hyundai owners may have received good news after a settlement was reached in a class-action lawsuit over claims that certain models of vehicles are vulnerable to theft "following the automakers failure to install basic security measures," according to a press release from the plaintiff's attorneys and confirmed by the automakers.

The suit focuses on the automakers’ "failure to equip 2011-2022 models with an immobilizer," a common anti-theft device. According to the release, such devices work to prevent "most vehicles from being started" without a key present.

The lack of an immobilizer in millions of vehicles nationwide was exposed in a viral TikTok challenge in May 2022, where videos posted to social media demonstrated how thieves could quickly and easily steal and start the affected vehicles.

Some U.S. cities have reported that 60% or more of all their auto thefts now involve Hyundai or Kia-made vehicles.

Attorneys say the settlement will deliver "benefits as soon as possible" to owners of the affected vehicles who have suffered "out-of-pocket" losses due to the missing immobilizer. According to the suit, the number of impacted vehicles may total nine million nationwide.

Of the $200 million settlement, after attorneys' fees, consumers may receive up to $145 million. The settlement is still awaiting final approval from a judge overseeing the case.

The settlement also offers upgrades to "fix the lack of immobilizer at the heart of the issue, as well as payments to those who are not eligible for [a free software] upgrade," recently announced by the automakers, attorneys say.

"We think it’s a big win for consumers," said Steve Berman, an attorney representing Hyundai and Kia drivers in this case. "If your car was stolen and you incurred thousands of dollars or losses and it wasn’t covered by insurance, you can make a claim for that loss."

How Much Money Could Kia, Hyundai Owners Get From the Settlement?

According to the release, payments are divided into tiers and include compensation for a variety of out-of-pocket expenses, including total loss of vehicles up to $6,125, and personal property damage up to $3,375.

The settlement also provides relief for insurance-related expenses as well as car rental or ride share costs, taxi payments, public transit payments, towing costs and more.

"The settlement also includes payments to those whose vehicles suffered crashes or were stolen and never recovered, as well as coverage for speeding tickets, red light tickets or other penalties or fines incurred arising from a stolen vehicle," the release states.

Software Upgrades

In addition to payments, the settlement provides eligible vehicle owners with the opportunity to receive a no-cost software upgrade to "effectively address the cars' lack of immobilizer."

Some impacted vehicles however, are not eligible for an update, the release states. According to attorneys, those car owners "will be eligible for reimbursement of up to $300" to cover the installation of another form of anti-theft, including the purchase of a steering wheel lock, the installation of a glass-breakage alarm system, or other ant-theft system.

The settlement also allows class members the opportunity to recover losses related to income or childcare expenses resulting from the implementation of the upgrade.

The software update has been available since February. However, it didn't solve the problem. That's because the companies’ software rollout has been far too slow, safety authorities said. Critics have also noted that the campaign to notify car owners should have been more aggressive. They also argue the U.S. National Highway Traffic Safety Administration should have forced a recall on affected vehicles to increase the chances of alerting owners to the danger and need to seek a repair.

Of the 4.5 million Kia vehicles that are eligible for the fix, the automaker says, as of early May, it’s installed the software on about 210,000 — only 5%. Kia says it has sent notifications to about 2.8 million of the affected owners and expects to have notified all of them by the end of this month. For Hyundai, the figure is about 225,000 out of 3.8 million vehicles — roughly 6%. Hyundai said he expects to have contacted all the affected vehicle owners by May 18.

Which Car Models Are Eligible For the Upgrade?

Hyundai vehicles eligible for the software upgrade include: 2018-2022 Accent, 2011-2022 Elantra, 2013-2020 Elantra GT, 2018-2022 Kona, 2013-2022 Santa Fe, 2013-2018 Santa Fe Sport, 2019 Santa Fe XL, 2011-2019 Sonata, 2011-2022 Tucson, 2012-2017, 2019-2021 Veloster, 2020-2021 Venue, 2013-2014 Genesis Coupe and 2020-2021 Palisade.

Hyundai customers with their Vehicle Identification Number (VIN) can use an online tool at this website here to see if they are eligible to schedule their upgrade.

Hyundai has also offered some insurance options for drivers of vehicles impacted by the theft crisis. To learn more about that, click here.

Kia vehicles eligible for the software upgrade include: 2011-2022 Kia Sportage, 2011-2022 Kia Sorento, 2021-2022 Kia K5, 2011-2021 Kia Sedona, 2014-2021 Kia Forte, 2012-2021 Kia Rio, 2021-2022 Kia Seltos, 2011-2020 Kia Optima and 2020-2022 Kia Soul.

Kia owners can search their VIN using this online tool on Kia’s website linked here to find out if and when their vehicle is eligible for the free software upgrade.

According to attorneys, settlement websites will soon be made available to class members. To monitor the status of the case and for more information, click here.