The Kia and Hyundai theft wave and insurance

Millions of 2011-2022 Hyundai and Kia models with a turn-key ignition were built without an engine immobilizer, the electronic device that stops a car from starting without its key. Once videos showing how to start them spread on social media in 2021 and 2022, thefts surged, some insurers stopped writing new policies on affected models, and premiums rose. The automakers responded with a free software upgrade starting in February 2023, a class-action settlement, and in December 2025 an agreement with 35 state attorneys general to offer free ignition cylinder protectors. If you own one of these cars, get both fixes, lock it with the key fob, and keep comprehensive coverage.

What happened

The Highway Loss Data Institute flagged the problem in September 2022. Immobilizers were standard on 96% of other manufacturers' 2015 models but only 26% of Hyundai and Kia models, and among 2015-19 vehicles, theft claims were nearly twice as common for Hyundai and Kia as for all other manufacturers. In Wisconsin, one of the first affected states, overall losses from Hyundai and Kia thefts in 2021 rose to more than 30 times the 2019 level (IIHS-HLDI).

Hyundai says thefts spiked in summer 2022 after thieves posted videos on TikTok and other platforms in what became known as the "Kia Challenge," showing how to break the steering column and reach the ignition (Hyundai). The consequences went beyond lost cars. In April 2023, attorneys general from 17 states and the District of Columbia asked NHTSA to order a recall. NHTSA had linked the trend to 14 reported crashes and eight deaths; Kia and Hyundai said their cars met federal standards (Insurance Journal).

Which cars are affected

The vulnerable vehicles are mostly base-trim 2011-2022 models that start with a physical key rather than a push button. The 2023 class settlement covered about 9 million Hyundai and Kia vehicles, from the Accent, Elantra, Sonata, Tucson and Santa Fe to the Kia Forte, Optima, Rio, Soul, Sorento and Sportage (Hyundai and Kia). Hyundai says all its vehicles produced since November 2021 have an immobilizer as standard, and HLDI reports immobilizers were standard on all the companies' models by 2023. Owners can check a VIN on the companies' anti-theft sites.

The fixes

Software upgrade (February 2023). The upgrade changes the car's control modules so that locking the doors with the key fob sets the alarm and an "ignition kill" feature; you must unlock with the fob to start the car. Dealers install it free and add window decals (Hyundai).

It works, with a caveat. HLDI's May 2025 analysis found theft claim frequency was 46% lower for upgraded Hyundai and Kia vehicles than for those without the upgrade, and whole-vehicle theft claims were 52% less frequent. But only about 41% of eligible Hyundais and 40% of eligible Kias had the upgrade by December 2024, theft claim rates for the eligible models stayed far above other brands, and vandalism claims rose, likely from failed theft attempts (IIHS-HLDI). HLDI also noted the software only arms when the driver locks with the fob, while many people lock using the door handle (IIHS-HLDI).

Steering wheel locks and cylinder protectors. Both companies distributed free steering wheel locks. For about 646,000 Hyundais that could not take the software, Hyundai began offering a free ignition cylinder protector in December 2023 (Hyundai).

State attorneys general agreement (December 2025). To resolve an investigation by 35 attorneys general, the companies agreed to offer free zinc-reinforced ignition cylinder protectors to eligible owners, including vehicles previously eligible only for the software, and to equip all future U.S. vehicles with immobilizers. Hyundai said about 4 million vehicles are covered and Kia about 3.1 million. Eligible owners were to be notified in early 2026 and have until the end of March 2027 to get the protector installed, and the companies agreed to pay up to $9 million in restitution and investigation costs (Insurance Journal).

How insurers responded

• Restricting new policies. In January 2023, Progressive and State Farm confirmed they were raising rates and limiting new policies for certain theft-prone models. State Farm said it had "temporarily stopped accepting new customer applications in some states for certain model years and trim levels," and Progressive said theft rates for certain models had more than tripled in a year (Insurance Journal).
• A AAA program. In April 2023, Hyundai and independently operated AAA insurers (see AAA car insurance: how the clubs and their insurers work) announced a program to write new and renewal policies for affected Hyundai owners in all states where AAA sells insurance except Alaska, Massachusetts and Washington (Hyundai).
• Suing the automakers. Several hundred insurers sued Hyundai and Kia seeking to recoup more than $1 billion in theft-related claim costs, a form of subrogation. In November 2023 a federal judge in California refused to dismiss those suits (Insurance Journal).

The consumer class settlement

In May 2023 Hyundai and Kia announced a settlement of consumer class actions that they said could be worth about $200 million, depending on participation. It provides cash for theft-related losses not covered by insurance, reimbursement of insurance deductibles, increased premiums and other theft-related costs, and up to $300 toward anti-theft devices for vehicles that cannot take the software (Hyundai and Kia). The case is In re Kia Hyundai Vehicle Theft Marketing, Sales Practices, and Products Liability Litigation, No. 8:22-ML-3052 (C.D. Cal.). Reuters, in a report published by Insurance Journal, said the court granted preliminary approval on October 31, 2023 (Insurance Journal). Claim deadlines are set by the court; if you received a notice, follow the instructions and contact the administrator named in it. For how these cases work generally, see class actions against car insurers.

Where things stand

Thefts of these brands have fallen three years in a row. NICB reports Hyundai and Kia accounted for 14% of all U.S. vehicle thefts in 2025, down from 16% in 2024 and 21% in 2023, though the Hyundai Elantra was still the most stolen model in 2025 (NICB). See The most stolen cars in America.

What to do if you own an affected car

1. Check your VIN on the Hyundai or Kia anti-theft site and book the software upgrade if you have not.
2. Get the ignition cylinder protector under the 2025 agreement before the end of March 2027.
3. Lock with the key fob, not the door handle, so the ignition kill arms.
4. Use a steering wheel lock as a visible extra layer.
5. Keep comprehensive coverage; without it, a theft is entirely your loss.
6. Tell your insurer about the upgrade and ask about an anti-theft device discount.
7. If insurers turn you down, compare more companies, including AAA clubs and nonstandard carriers; see high-risk car insurance: options when insurers say no.
8. Keep records of theft losses, deductibles and premium increases in case they are claimable under the settlement.

If your car is stolen, see what to do if your car is stolen.

Key takeaways

• Many 2011-2022 Hyundais and Kias with turn-key ignitions lacked immobilizers, which social media turned into a theft wave.
• HLDI found the free software upgrade cut theft claims by 46%, but many eligible cars still have not received it.
• A December 2025 deal with 35 attorneys general adds free ignition cylinder protectors, with installation open until the end of March 2027.
• Some insurers restricted new policies in 2023; AAA insurers offered coverage to affected Hyundai owners in most states.
• Owners should get both fixes, lock with the fob and keep comprehensive coverage.