Hyundai/Kia Will Pay Owners $200 Million over Easily Stolen Cars

• Kia and Hyundai have been dealing for years with social media videos that show how easy it is to steal some of their models and encourage others to give it a shot.

• Around 9 million mostly base trim Kia and Hyundai vehicles are affected, and their owners have been offered steering wheel locks and other anti-theft devices in the past. Read on for a list of affected models.

• The new settlement will cost the automakers around $200 million, with $145 million set aside for customers' out-of-pocket losses as they've dealt with this issue.

The "Kia Challenge" TikTok fad will cost Hyundai and Kia another $200 million.
The two automakers have agreed to pay an expected $200 million as compensation for customers who had their cars stolen or damaged in ways not covered by insurance. The money will also reimburse Hyundai and Kia owners for any losses due to paying insurance deductibles, higher insurance premiums or other theft-related losses.

In around early 2021, users of the popular video-sharing site TIkTok started seeing videos showing just how easy it was to steal some Hyundai and Kia vehicles built without push-button ignitions or an immobilizer, a device that prevents the car from moving if a key fob is not detected. Before going nationwide, the trend started in Milwaukee, Wisconsin, where the number of stolen Hyundai and Kia models was 25 times higher in the first half of 2021, even as the overall rise in thefts was just 2.5 times higher.

According to Reuters, the $200 million settlement will cover approximately 9 million Hyundai and Kia vehicles, with up to $145 million set aside to cover customers' out-of-pocket losses. Kia and Hyundai said they expect the court to preliminary approve the settlement in July.

Steering Wheel Locks Were Only a Stopgap

Hyundai and Kia have spent years providing stopgap solution after stopgap solution, including free steering wheel locks and $170 anti-theft kits. In February, Kia and Hyundai said a free security software update would act like an immobilizer on vehicles without them. In April, the automakers worked with AAA to provide insurance for owners who lost coverage from other providers once it became clear how easy it was to steal one of these vehicles.