Hyundai and Kia have made headlines in recent years due to the ease with which some of their vehicles could be stolen. This led 35 states' attorneys general to file suit against the companies, alleging the vehicles lacked adequate anti-theft technology. On December 15, it was announced that a settlement had been reached in which Hyundai and Kia will offer restitution and free repairs for vehicle owners whose cars were stolen or damaged.

The AGs’ suit alleged that from 2011 to 2022, Kia and Hyundai failed to equip certain models with anti-theft immobilizers that would prevent those vehicles from being operated without the key or fob. In a release, Illinois Attorney General Kwame Raoul says that more than 7,000 Hyundais and Kias — around 7 to 10% of those registered in the city — were stolen in Chicago in 2022 alone.

The suit claimed that the automakers failed to install anti-theft technology in vehicles sold in the U.S. that was standard on the same models sold in other countries. As a result, the number of thefts and the use of stolen vehicles to commit other crimes in the U.S. significantly increased.

These theft issues also led to some insurance companies refusing to insure the Hyundai and Kia models that proved most vulnerable to theft.

According to Raoul, Hyundai and Kia have agreed to the following terms under the settlement:

  • They will equip all future vehicles sold in the U.S. with industry-standard engine immobilizer anti-theft technology;
  • Offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles, including vehicles that previously were only eligible for the companies’ software updates;
  • Provide up to $4.5 million in restitution to eligible consumers whose cars were damaged by theft; and
  • Pay $4.5 million to the states to defray the costs of the investigation.

“This settlement will ensure consumers can effectively protect their vehicles from theft while protecting communities in Illinois and across the country,” Raoul said in the release. “I urge all affected consumers to schedule the installation of the proper anti-theft technology or file a theft compensation claim as soon as possible. I stand committed to protecting consumers and our communities, and I’m pleased that this settlement will help to prevent further thefts.”

The claim deadline for eligible vehicle owners is March 31, 2027.

More information about the terms of the settlement, and which vehicle owners are eligible can be found here.

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