Millions of Hyundai and Kia Owners to Get Free Anti-Theft Repairs

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In a major multistate settlement announced this week, Hyundai Motor Company and Kia Corporation agreed to provide free repairs for millions of vehicles nationwide and offer compensation to affected owners, resolving allegations that certain models lacked adequate anti-theft technology and became easy targets for thieves.

The agreement, reached with 35 state attorneys general, stems from an investigation led by Minnesota’s attorney general, who found that thousands of Hyundai and Kia vehicles sold in the United States between 2011 and 2022 were not equipped with a standard anti-theft device called an engine immobilizer, a technology that prevents a car from starting without the correct electronic key.

Unlike most other automakers, Hyundai and Kia did not include this feature broadly on U.S. models despite using it in Canadian and Mexican markets.  State officials said this discrepancy contributed to widespread theft.

The omission of engine immobilizers, coupled with a surge in social media videos demonstrating how to steal these vehicles with simple tools such as a screwdriver and USB cable, led to a dramatic spike in thefts beginning in 2021. Minneapolis Police Department records showed an 836% increase in thefts of Hyundai and Kia models from 2021 to 2022. Thieves exploited weaknesses in the steering column and ignition systems, prompting complaints from law enforcement and vehicle owners alike.

The fix includes the installation of a zinc-reinforced sleeve around the ignition cylinder to protect it from tampering, and the companies will also ensure that all future vehicles sold in the U.S. include engine immobilizer technology. Eligible owners will be notified and have one year from that notice to schedule the repair at an authorized dealership, with work expected to begin in early 2026 and continue through early 2027.

State officials estimate that nearly 9 million vehicles nationwide qualify for the free upgrades, with the total cost of repairs potentially exceeding $500 million. In addition to the hardware improvements, the settlement calls for up to $4.5 million in restitution to individuals whose vehicles were damaged or stolen due to the security vulnerabilities. While this figure may appear modest compared with the number of affected owners, it reflects negotiated terms designed to compensate verified losses.

Underscoring the broad impact of the theft issue, attorneys general from major states including California, New York, New Jersey and Pennsylvania joined the agreement. Owners in those states and others are now eligible to submit claims for compensation for theft-related damage or total loss, according to settlement guidelines. Specific amounts of reimbursement vary depending on the extent of the loss and will be administered through a settlement claims process overseen by participating state authorities.

Officials emphasized that the settlement reflects both accountability and consumer protection. Minnesota’s attorney general noted that many owners endured repeated thefts, insurance complications, and safety risks linked to the theft epidemic. In some communities, stolen vehicles were involved in crashes and injuries.

Hyundai and Kia issued statements expressing support for the resolution and reiterating commitments to customer safety. Representatives for the automakers pointed to ongoing efforts to expand security features, including prior software upgrades and distribution of steering wheel locks, and said they will work with law enforcement and industry partners to mitigate theft risks.

Consumer advocacy groups welcomed the settlement, although some critics argue that earlier action on anti-theft technology could have prevented years of losses. Advocates also noted that the real-world costs associated with theft, including insurance hikes and personal inconvenience, can’t be fixed with direct repair and restitution.

For affected Hyundai/Kia owners, the settlement represents a concrete step toward addressing longstanding security gaps. State officials have made information available through public portals where consumers can check eligibility and learn how to submit documentation for repairs and restitution once the notification process begins.