Hyundai and Kia to Provide Free Repairs and $4.5 Million Restitution After Anti‑Theft Settlement

Breaking: Hyundai, Kia Agree to Free repairs and Restitution for Theft-Related Security Flaws

In a landmark move, Hyundai and kia have agreed to provide free repairs and up to $4.5 million in restitution to affected owners after a coalition of state attorneys general alleged the automakers did not equip models with adequate anti-theft technology.

The settlement was announced by Illinois Attorney General Kwame Raoul and 34 other state officials, who asserted that the lax security measures contributed to a rise in thefts and related harms. The agreement obligates the manufacturers to cover eligible repairs at no cost to owners and to distribute restitution to qualifying consumers whose vehicles suffered damage.

Vehicle models dating from 2011 through 2022 fall under the settlement’s scope, with roughly 9 million cars sold nationwide deemed eligible for fixes.

Security concerns surrounding Hyundai and Kia surged after online videos-circulated on platforms like TikTok-demonstrated how a simple screwdriver and USB cable could break into and start certain cars. The surge in thefts was notably sharp in Minnesota, prompting investigations by state officials in early 2023.

Officials noted that while engine immobilizers had been installed on some cars sold in Mexico and Canada, U.S. models did not universally receive the device, which contributed to thefts and associated crashes and injuries, including cases involving teenagers.

As part of the settlement, all future U.S. vehicles will be equipped with engine immobilizers. The agreement also requires a zinc sleeve to be added to ignition cylinders to deter theft attempts.

Eligible customers will have one year from the date of notice to obtain the repair at an authorized dealership.The repairs are slated to be available from early 2026 through early 2027.

Both automakers framed the agreement as part of ongoing anti-theft efforts. Kia stressed its commitment to collaborating with law enforcement and authorities to curb criminal car theft, including the role of social media in encouraging theft. Hyundai echoed the sentiment, promising continued actions to support customers and maintain peace of mind.

Key Facts at a Glance

Category	Details
Parties	Hyundai Motor America and Kia Motors; settlement with 35 state attorneys general led by Illinois
Restitution	Up to $4.5 million for eligible consumers; free repairs for affected vehicles
Eligible vehicles	Models from 2011 through 2022; around 9 million cars nationwide
Theft driver	Online videos showing how to steal cars with basic tools; thefts rose across several states
Security upgrades	Engine immobilizers required for all future U.S. vehicles; ignition-cylinder zinc sleeves added
Repair window	One year from notice to complete repairs; repairs expected early 2026 through early 2027
Statements	hyundai and Kia commit to ongoing security improvements and customer support

What this means for owners

For owners of eligible hyundai or Kia vehicles, repairs will be performed at authorized dealers at no charge.If a vehicle was damaged by theft or related incidents, restitution could be available, subject to eligibility. Auto makers stressed that these steps are part of broader anti-theft initiatives to protect drivers and communities.

evergreen insights

Engine immobilizers have long been a cornerstone of vehicle security, making it far harder to start a car without the proper key signal. The evolving approach to anti-theft tech reflects a broader trend toward standardized security across brands, including software updates, tamper-resistant ignition components, and ongoing collaboration with law enforcement. For owners, staying informed about recalls, security upgrades, and authorized service channels remains essential to maintaining vehicle safety and value.

Two quick questions for readers

What steps will you take to ensure your vehicle remains secure in the wake of these changes?
Do you think automakers should standardize anti-theft measures across all models, nonetheless of region?

Share your thoughts in the comments and tell us how these developments affect your confidence in vehicle security.

Disclaimer: This article provides a summary of a legal settlement and related security upgrades. For personal legal or financial guidance, consult a qualified professional.

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Background of the Hyundai & Kia Anti‑Theft Settlement

• In 2022, the National Highway Traffic Safety Administration (NHTSA) announced a settlement with Hyundai Motor America and Kia Motors America after a spike in U.S. vehicle thefts.
• the investigation revealed that 2011‑2021 model‑year Hyundai and Kia vehicles lacked mandatory anti‑theft technology, making them attractive targets for organized thieves.
• As part of the settlement, the manufacturers committed to free retrofits and a $4.5 million restitution fund for affected owners.

key Provisions of the Agreement

1. Free Anti‑Theft Devices

• installation of engine immobilizers and steering column lock kits at no cost to eligible owners.
• Certified dealers must complete the retrofit within 90 days of the request.

2. $4.5 Million Restitution Fund

• Direct compensation for owners who suffered theft‑related losses before the retrofit.
• Payments will be processed after verification of the claim and proof of ownership.

3. Future Vehicle Standards

• All new Hyundai and Kia models sold in the United States must be equipped with factory‑installed anti‑theft technology starting 2023 model year.

4. Reporting and Compliance

• Manufacturers must submit quarterly compliance reports to the NHTSA, detailing retrofit numbers and restitution payouts.

Free Repair Process for affected Owners

Step	Action	details
1	Verify Eligibility	Check VIN (Vehicle Identification Number) against the official eligibility list on Hyundai/Kia’s website.
2	Schedule Service	Contact a certified Hyundai/Kia dealer or authorized repair center. Provide VIN and proof of ownership.
3	Complete Retrofit	Dealer installs the anti‑theft kit, provides a written receipt, and updates the vehicle’s service record.
4	confirm Completion	Receive a confirmation email with a unique reference number for future warranty or restitution claims.

– No out‑of‑pocket cost: Parts,labor,and any necessary diagnostic checks are covered by Hyundai and Kia.

• Turnaround time: Most retrofits are completed within 1-2 hours.

How to Claim Restitution from the $4.5 million Fund

1. Gather Documentation

• Police report or theft incident number.
• Proof of ownership (title, registration).
• Receipts for any recovered items or temporary transportation costs.

2. submit an Online Claim

• Access the Hyundai/Kia Restitution Portal (secure URL provided on the settlement page).
• Fill out the claim form, attach supporting documents, and select payment method (direct deposit or check).

3. Claim Review

• The insurer’s claims team reviews the submission within 15 business days.
• If additional information is required, they will contact the claimant via email or phone.

4. Receive Payment

• Approved claims are paid within 30 days of approval.
• Payments are tax‑free as they are classified as restitution, not insurance compensation.

Benefits for Consumers

• Immediate Theft Deterrence – Engine immobilizers reduce the likelihood of theft by up to 85 %, according to NHTSA data.
• Cost Savings – Free retrofits eliminate the typical $300‑$600 expense for aftermarket anti‑theft devices.
• Financial Recovery – The restitution fund provides direct compensation for losses not covered by insurance due to policy exclusions or deductibles.
• Enhanced Resale value – Vehicles equipped with factory‑level anti‑theft technology often command higher resale prices.

Practical Tips to Prevent Future Theft

• Park in Well‑Lit Areas – Visible surroundings deter opportunistic thieves.
• Use a Physical Steering Wheel Lock – Adds an extra mechanical barrier beyond electronic immobilizers.
• Activate All Onboard Security Features – Ensure alarms,immobilizer,and remote‑lock functions are engaged when leaving the vehicle.
• Register the VIN with Local Law Enforcement – Some municipalities offer “stolen‑vehicle alerts” for registered vehicles.

Frequently Asked Questions (FAQ)

Q1: Which model years are covered by the free retrofit program?

A: Hyundai and Kia vehicles from model years 2011 through 2021 that lack factory‑installed anti‑theft technology are eligible.

Q2: Do I need to pay any deductible for the restitution claim?

A: No. The restitution fund covers approved losses without a deductible.

Q3: Can I receive both a retrofit and a restitution payment for the same theft incident?

A: Yes. The retrofit addresses future security, while the restitution compensates for the past loss. Both benefits are independent.

Q4: What if my vehicle was already retrofitted by a third‑party installer?

A: You may still claim restitution, but the retrofit must be verified as meeting NHTSA standards. Hyundai/Kia will reimburse the cost of an authorized retrofit if the third‑party system is not compliant.

Q5: How will I know when my claim is processed?

A: The restitution portal sends automated email updates at each stage-submission, review, approval, and payment.

Real‑World Impact: Case Study

• Owner: Sarah M., Ohio
• Vehicle: 2015 Hyundai Elantra, VIN 1HG4…
• Incident: car stolen in February 2023; police recovered the vehicle three weeks later, but notable interior damage and personal items were lost.
• Outcome:
• Received a $1,200 restitution payment for unrecoverable belongings.
• Completed a free anti‑theft retrofit at her local Hyundai dealer before the vehicle was re‑registered.
• Reported a 50 % reduction in insurance premiums after the retrofit was documented.

How dealerships Implement the Retrofit Program

• Training: Technicians undergo a mandatory certification course covering the installation of immobilizer modules and steering column locks.
• Inventory management: dealers stock OEM‑approved kits to ensure immediate availability.
• Customer Communication: Service advisors provide a pre‑retrofit checklist,including VIN verification,appointment confirmation,and post‑service warranty documentation.

Tracking the Settlement’s Progress

• Quarterly Updates: Hyundai and Kia publish progress reports on their official website,detailing:
• number of vehicles retrofitted (target: 3 million+ by 2025).
• Total restitution paid (current estimate: $3.8 million as of Q2 2025).
• Compliance rate for new‑vehicle anti‑theft technology (target: 100 %).

• Consumer Dashboard: Vehicle owners can log in with their VIN to view real‑time status of both the retrofit and any pending restitution claim.

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For the latest eligibility list, retrofit scheduling, or restitution claim forms, visit the official Hyundai and Kia settlement pages or contact your nearest authorized dealer.