The Hyundai/Kia Theft Settlement: How to Claim

Owners of millions of Hyundai and Kia vehicles have faced significant stress due to a security flaw that made their cars targets for theft. Following a viral TikTok trend exposing how to bypass the ignition systems on specific 2011-2022 models, the automakers agreed to a class-action settlement valued at approximately $200 million. This guide details the financial reimbursements available, the crucial software upgrades you need, and the specific eligibility requirements for your vehicle.

Understanding the Security Flaw and Settlement

The core issue stems from the lack of an engine immobilizer in many base-model Hyundai and Kia vehicles manufactured between 2011 and 2022. Unlike most modern cars, these vehicles utilize a traditional “turn-key” ignition system without a computer chip to verify the key. This allowed thieves to start the vehicles using a simple USB cable after stripping the steering column cover.

In response to the sharp rise in thefts and the subsequent class-action lawsuit (Hagens Berman Sobol Shapiro LLP vs. Kia/Hyundai), a settlement was reached. This agreement provides cash compensation for out-of-pocket losses and offers a free software fix to prevent future thefts.

While the primary deadline to file a claim for past damages was July 25, 2024, understanding the structure of the settlement is vital for checking the status of a pending claim or understanding your current rights regarding the software upgrade.

Financial Reimbursement Categories

For those who filed within the window, or if a court grants an extension for late filings due to exceptional circumstances, the settlement covers several specific tiers of financial loss. The settlement fund allocates up to $145 million specifically for out-of-pocket losses.

Total Loss of Vehicle

If your vehicle was stolen and never recovered, or recovered but declared a total loss (salvage) due to the theft, you are eligible for significant compensation.

  • Compensation: You may receive up to $3,375 or 33% of the Black Book value of the vehicle, whichever is greater.
  • Condition: This applies if the theft occurred due to the lack of an immobilizer.

Damage to Vehicle and Personal Property

Many owners recovered their cars with smashed windows, damaged steering columns, or ruined interiors.

  • Compensation: The settlement offers up to $3,375 for repair costs.
  • Personal Items: If personal property inside the car was stolen or damaged during the incident, this amount also contributes toward covering those losses.

The theft epidemic caused insurance premiums to spike, and many owners had to pay deductibles for repairs.

  • Deductibles: You can be reimbursed up to $375 for insurance deductibles paid.
  • Premium Hikes: If your insurance policy premiums increased specifically because of the theft risk associated with your car model, reimbursement is capped at $375.

Other Out-of-Pocket Expenses

The settlement recognizes that losing a car creates immediate logistical problems.

  • Car Rentals and Rideshare: Reimbursement is available up to $250 total for rental cars, Uber, Lyft, or public transit costs incurred while the vehicle was stolen or being repaired.
  • Towing and Storage: Costs related to towing the recovered vehicle or storing it at an impound lot are covered up to $80 per incident.
  • Lost Wages/Childcare: If you had to miss work or pay for extra childcare to deal with the theft, specific allowances are included in the claim structure.

The Free Anti-Theft Software Upgrade

Regardless of whether you filed a financial claim, every eligible owner should obtain the anti-theft software upgrade immediately. This is the primary fix offered by Hyundai and Kia to prevent the “hot-wiring” method used by thieves.

How the Software Works

The software updates the “theft alarm control logic” in the car’s computer.

  1. Extended Alarm: It extends the length of the alarm sound from 30 seconds to one minute.
  2. Ignition Kill: Crucially, it requires the key to be in the ignition switch to turn the vehicle on. If the car is locked with the fob and someone attempts to start it without the key (using a USB cable or tool), the ignition will not engage.

Installation Process

  • Cost: The service is 100% free.
  • Location: You must visit an authorized Hyundai or Kia dealership.
  • Duration: The installation typically takes less than one hour.
  • Window Sticker: Upon completion, the dealer will apply a window decal stating the vehicle is equipped with anti-theft technology. This serves as a visual deterrent to potential thieves.

What If My Car Cannot Receive the Update?

Engineers determined that some specific models cannot accommodate the software upgrade due to hardware limitations. If your VIN falls into this category, the settlement provides alternative protection methods.

Reimbursement for Physical Locks

Owners of non-upgradeable vehicles are eligible for reimbursement for the purchase of a steering wheel lock (such as The Club) or similar anti-theft devices.

  • Cap: Up to $50 per vehicle.
  • Glass Breakage Alarm: Some owners may opt for a glass breakage alarm kit, which involves a more complex installation. The settlement covers up to $300 for the purchase and installation of this specific type of aftermarket system.

Eligible Vehicles List

The settlement applies to vehicles equipped with a steel key “turn-to-start” ignition system. Vehicles with a push-button start were equipped with immobilizers from the factory and are not part of this defect list.

Hyundai Models:

  • Accent: 2018-2022
  • Elantra: 2011-2022
  • Elantra GT: 2013-2020
  • Genesis Coupe: 2013-2014
  • Kona: 2018-2022
  • Palisade: 2020-2021
  • Santa Fe: 2013-2022
  • Sonata: 2011-2019
  • Tucson: 2011-2022
  • Veloster: 2012-2021
  • Venue: 2020-2021

Kia Models:

  • Forte: 2011-2021
  • K5: 2021-2022
  • Optima: 2011-2020
  • Rio: 2011-2021
  • Sedona: 2011-2021
  • Seltos: 2021-2022
  • Soul: 2010-2022
  • Sorento: 2011-2022
  • Sportage: 2011-2022

Steps to Take Immediately

If you have not yet addressed this issue with your vehicle, take these steps to secure your car and check your settlement status.

  1. Verify Your VIN: Go to the official recall websites (HyundaiAntitheft.com or KiaSupport.com). Enter your 17-character Vehicle Identification Number found on your dashboard or insurance card. This will confirm if your specific car needs the software or is eligible for a physical lock reimbursement.
  2. Schedule the Upgrade: If eligible, call your local dealer. Do not wait. This upgrade significantly reduces the risk of theft.
  3. Check Claim Status: If you filed a claim before July 2024, you can check the status on the official settlement administrator website (KiaTheftSettlement.com or HBSsettlement.com). Payments generally begin after the court grants final approval and any appeals are resolved.

Frequently Asked Questions

Is it too late to get money from the settlement? The deadline for the initial class action claim filing was July 25, 2024. However, you should check the settlement website. In some class actions, late claims are accepted if you can prove you were not properly notified or had a valid reason for the delay. Additionally, the software upgrade remains free indefinitely.

Will the software update lower my insurance rates? It is possible. Major insurers like State Farm and Progressive had previously stopped writing new policies for these models in certain states. With the software upgrade installed, your vehicle is more secure. You should contact your insurance agent, provide proof of the upgrade, and ask for a policy review.

My car was stolen after the settlement deadline. Can I claim? The original settlement covered thefts occurring up to the effective date. If your car is stolen now, you must rely on your standard comprehensive auto insurance policy. This highlights the importance of getting the free software update immediately to prevent future incidents.

What if I already paid for a steering wheel lock? If you have a vehicle that is not eligible for the software upgrade, you were entitled to reimbursement up to $50. If you missed the July deadline, you will likely not be reimbursed by the settlement fund, but many police departments are still distributing free steering wheel locks to Hyundai and Kia owners. Contact your local precinct to ask about availability.