Hyundai, Kia to offer theft reimbursements after settling class-action lawsuit

Class-action settlement means eligible drivers could receive up to $4,500 if their car was stolen this year.

MB
Michael Brestovansky

December 17, 20252 min read

Hyundai's Logo
Hyundai's logo (iStock | tomeng)

Drivers of Hyundai or Kia vehicles in Hawai‘i may be able to claim free anti-theft measures after a multi-state class action settlement.

Hawai‘i was one of 35 states to pursue action against Hyundai and Kia after a rash of vehicle thefts fueled by thieves who shared tips about how to steal them on social media. Since 2021, thefts of Kias and Hyundais have spiked after viral videos on TikTok and other platforms demonstrated easy methods to steal them.

Those vehicles were so easily stolen because the automakers did not include engine immobilizers — devices that prevent an engine from starting unless a transponder, typically in the keyfob, is nearby — on most of their vehicles sold in the U.S.

While the automakers attempted to mitigate the rising thefts, they were slow to do so, the Hawai‘i Department of Commerce and Consumer Affairs stated. A software update that rolled out in 2023 was too late to stop thousands of car thefts, but also was itself found to be easily bypassed.

The automakers also offered to install zinc sleeves around vehicles’ ignition cylinders in order to prevent thieves from accessing the cylinders and starting a car illegally. However, those sleeves were only offered for the small percentage of vehicles that could not receive the software update.

Hawai‘i was among dozens of states to join the class-action suit against the automakers, along with California, Kentucky, Michigan, Wisconsin, and others. The attorneys general of Connecticut, Minnesota and New Hampshire led the settlement.

Under the terms of the settlement, drivers of a Hyundai or Kia vehicle between the model years of 2011 and 2022 that were not factory-equipped with immobilizers will be eligible to have the zinc sleeve installed for free at any Hyundai or Kia dealership. That offer will remain open for one year, with a final deadline on March 31, 2027.

The Hawai‘i DCCA advises customers to schedule an installation as soon as possible. DCCA spokesman William Nhieu told Aloha State Daily that there are approximately 42,946 vehicles sold or registered in Hawai‘i that may be eligible for the sleeve installation.

Meanwhile, drivers may also be eligible for partial reimbursement if their Hyundai or Kia vehicles were stolen. According to the settlement, the automakers will pay up to $4,500 for claims of a total loss of a vehicle, $2,250 for a partial loss and up to $375 for claims of expenses related to an attempted theft.

However, these payouts are not guaranteed. Claimants must prove the theft took place after April 29, 2025, and that their vehicle either had received the software update or was scheduled to receive it at the time of the theft or attempted theft. The automakers are also obligated only to pay a collective $4.5 million to eligible customers nationwide.

On top of the payouts to theft victims, the automakers must also pay $4.5 million to the states involved in the suit. As determined by an executive committee of the attorneys general involved, that means Hawai‘i will receive a cool $69,708.

Nhieu told ASD that those funds “are to be utilized for continued consumer protection purposes.” He added that, as Hawai‘i did not serve on the executive committee, the state incurred minimal costs for participating in the suit.

Customers can submit claims and learn more about their eligibility online.

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Authors

MB

Michael Brestovansky

Government & Politics Reporter

Michael Brestovansky is a Government and Politics reporter for Aloha State Daily covering crime, courts, government and politics.