$9M Kia / Hyundai Settlement Offers Cash and Security Upgrades
Publisher: Tlamy Jeudy
Introduction
In response to widespread thefts of certain Kia and Hyundai vehicles — vehicles manufactured without the standard engine immobilizer anti-theft technology — Hyundai Motor Company and Kia America have agreed to a multistate settlement totaling $9 million.
This settlement offers eligible owners and lessees two primary forms of relief:
- Cash compensation for qualifying thefts or theft attempts
- Free anti-theft security upgrades to make affected vehicles less vulnerable to theft
Eligible owners and lessees can submit a claim using the official settlement portal:
Background: The Vehicle Theft Problem and Litigation
Millions of Kia and Hyundai vehicles built from 2011 to 2022 were sold in the United States without industry-standard anti-theft protection known as an engine immobilizer. This made these vehicles vulnerable to relatively simple theft methods that became widely discussed on social media, leading to increases in thefts and attempted thefts in several regions.
In response, 35 state Attorneys General brought legal action against both automakers. While Hyundai and Kia have not admitted wrongdoing as part of the settlement, they agreed to the relief package to resolve claims arising from the sale of these vehicles.
Who Qualifies for the Settlement
To be eligible for cash compensation or security upgrades, a claimant must meet specific criteria:
- Own or lease a Kia or Hyundai vehicle manufactured between 2011 and 2022 that did not include a factory-installed engine immobilizer
- The vehicle must have received a qualifying software upgrade or had an upgrade appointment scheduled
- A qualifying theft or attempted theft must have occurred on or after April 29, 2025, and before the vehicle received the free hardware upgrade or before March 31, 2027
Vehicles that were factory-equipped with an engine immobilizer are generally not eligible for compensation under this settlement.
Cash Compensation
If all eligibility conditions are met, qualifying claimants may receive:
- $4,500 for a total loss due to qualifying theft
- $2,250 for a partial loss following a theft
- $375 for reasonable expenses from a qualifying attempted theft
Claimants must provide supporting documentation, such as police reports, proof of theft-related expenses, or insurance deductible receipts to substantiate their claim.
Payments are made from a limited restitution fund and will be distributed until funds are exhausted.
Free Security Upgrades
Alongside cash compensation, the settlement provides free security hardware upgrades for eligible vehicles, including:
- Software Upgrade to enhance existing anti-theft alarms and reduce exploit vectors
- Zinc-reinforced ignition cylinder protector (Zinc Sleeve) that physically strengthens the ignition area
These upgrades must be scheduled or installed through an authorized Kia or Hyundai dealership at no charge to the eligible owner or lessee.
Deadline to File a Claim
The last date to submit a claim under this settlement is March 31, 2027. Missing this deadline generally forfeits the right to compensation.
How to Submit Your Claim
To submit a claim, visit the official settlement website and use the claim form. Be prepared with documentation including:
- Vehicle identification number (VIN)
- Proof of ownership or lease
- Police reports or theft documentation
- Receipts for theft-related expenses
- Records of dealership upgrade installations or scheduled appointments
Failing to provide adequate documentation may delay or reduce the amount of compensation.
Broader Context
This $9 million settlement is part of a larger pattern of litigation concerning Kia and Hyundai vehicles sold without immobilizers. Coordinated state enforcement actions require that all future vehicles include anti-theft technology and that eligible existing vehicles receive hardware protections.
Frequently Asked Questions
Q: If my car was never stolen, can I still file a claim?
You may still file for free security upgrades even if you never experienced a qualifying theft or attempted theft, as long as your vehicle meets eligibility criteria.
Q: Do I need proof of theft from my insurance company?
Documentation such as police reports, insurance deductibles, or other expenses may be required to substantiate cash claims.
Q: How will I know if my vehicle qualifies?
Eligibility can be verified using your VIN on the settlement website or by contacting your local authorized dealership.
Q: If I already had the software upgrade installed, am I still eligible?
Yes, as long as the upgrade was installed (or scheduled) and a qualifying theft or theft attempt occurred after April 29, 2025, before the hardware upgrade was installed.
