The problem started during the COVID-19 pandemic when videos on social media showed how easy it was to steal Hyundais and Kias without electronic immobilizers. People could take these cars without keys in just seconds. This led to some big problems for the companies.
Some insurance companies stopped covering these cars. Hyundai Group got hit with multiple lawsuits, including a $200 million class-action suit they settled in May 2023. Insurance companies also sued, saying they lost over $1 billion because of all the thefts.
To fix this, Hyundai and Kia came up with a software update. It adds an immobilizer that needs a key in the ignition to start the car. Matt Moore, senior vice president of HLDI, says it's working really well.
"The companies’ solution is extremely effective. If you own a Hyundai or Kia vehicle without an electronic immobilizer, you should call your local dealer about getting the software upgrade today."
Right now, about 60 percent of cars that can get the update have it. If you own a Hyundai or Kia from 2011 to 2022 without an electronic immobilizer, you should call your local dealer to get the upgrade.
Even with the good news, there are still some issues. Insurance claims for these cars are higher than normal because thieves try to break in, causing damage and stealing stuff inside. But at least the cars stay put now.
Moore thinks things will get better over time. He said:
"Based on these trends, we expect claim rates for Hyundai and Kia vehicles to gradually drop back in line with those of other brands, as thieves learn they’re no longer so easy to steal and the fad gets stale."
The software update covers 8.3 million Hyundai and Kia vehicles made between 2011 and 2022. If you have one of these cars and haven't gotten the update yet, it's a good idea to do it soon.
Source: Highway Loss Data Institute