It's Working: Hyundai, Kia Thefts Are Way Down Since Software Fix

Hyundais and Kias equipped with a software update are being stolen far less often, a new study shows. The fix adds an immobilizer that requires the vehicle's key to be in the ignition for the engine to start. Despite the fix, thieves are still attempting to steal Hyundais and Kias, leading to higher-than-average insurance claims.

Things are improving for Hyundai and Kia owners, at least when it comes to the risk of theft. New data from the Highway Loss Data Institute (HLDI) shows a whopping 53 percent drop in theft claims on models that have had a software update to improve security.

“The companies’ solution is extremely effective,” said Matt Moore, senior vice president of HLDI. “If you own a Hyundai or Kia vehicle without an electronic immobilizer, you should call your local dealer about getting the software upgrade today.”

Unfortunately, there are quite a few owners who need to make that call. HLDI reports approximately 60 percent of eligible vehicles have received the software update as of July 2024. The fix adds an immobilizer that requires the key to be in the ignition for the vehicle to start. The infamous Kia Boys videos that hit social media during the COVID-19 pandemic showed people how to knick one of these cars in a matter of seconds without a key. With no immobilizer, thieves could literally just drive away.

The trend got so bad that some insurance companies stopped covering the cars. Multiple lawsuits were filed against Hyundai Group, including a $200 million class-action suit brought forth by vehicle owners that was settled in May 2023. It covered 8.3 million vehicles from 2011 through 2022. Insurance companies also filed a lawsuit alleging damages over $1 billion.

While thefts are significantly down since the software update, HLDI notes that insurance claims are still high for affected models. Even with the update, thieves are still tempted by a joyride and break into the vehicle not knowing it won't start. That leads to damage and theft of items from the vehicle. But at least it's still parked in the same spot when you show up the next morning.

“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,” said Moore.