Between 2011 and 2022, specific KIA and Hyundai vehicle models were manufactured without a crucial security feature known as the engine immobilizer. This feature is designed to prevent the unauthorized starting of the vehicle unless the correct key is used, offering significant protection against theft. The absence of this feature made these vehicles particularly vulnerable to theft. This issue was further highlighted when videos emerged on platforms such as TikTok, demonstrating how easily the ignition systems of these models could be bypassed.
Due to the increasing theft rates of these vehicles, KIA and Hyundai faced a class action lawsuit alleging that they failed to install engine immobilizers in their vehicles, thereby increasing the risk of theft for car owners.
KIA, Hyundai Class Action Settlement 2024
A fund has been set up with a range of $80 million to $145 million to provide compensation for vehicle owners who have been affected. The fund will be used to cover losses related to theft, repair expenses, and software upgrades aimed at enhancing vehicle security.
Eligibility and Process for the KIA-Hyundai Vehicle Theft Settlement
Who Can Apply?
To qualify for the KIA & Hyundai car theft settlement, you need to buy/lease his one of the designated models within the United States, including Virgin Islands, Puerto Rico, the U.S., and Guam. The affected models include:
- KIA’s Sorento (2011-22)
- KIA’s K5 (2021-22)
- KIA’s Forte (2011-21)
- KIA’s Optima (2011-20)
- KIA’s Rio (2012-21)
- KIA’s Sportage (2011-22)
- KIA’s Seltos (2021-22)
- KIA’s Soul (2020-22)
- KIA’s Sedona (2011-21)
How to File a Claim
If you own or lease one of the affected vehicles, you can follow these steps to file a claim:
- Check Vehicle Eligibility: Visit the official settlement website and input your Vehicle Identification Number (VIN) to confirm if your vehicle qualifies as part of the settlement class.
- Collect the Required Documents:
- Please ensure that you have proof of ownership or lease, such as vehicle registration or title, available.
- Please retain the following information: Any instances of theft or attempted theft, such as police reports or insurance claims, if relevant.
- Remember to keep receipts or invoices for out-of-pocket expenses linked to attempted theft, such as repair bills, insurance deductibles, and the cost of replacing stolen items.
- Complete the Claim Form: You can access the claim form online via the settlement website or request a paper form. Ensure you fill out the form accurately and provide all necessary supporting documentation.
- Submit the Claim Form: You have two options for submitting the completed claim form: You can either do it online through the settlement website or mail it to the designated address listed on the form.
Timeline of the KIA-Hyundai Settlement
The settlement process has several key dates that class members should be aware of:
| Event | Date | Description |
|---|---|---|
| Lawsuit Filed | 2022 | KIA and Hyundai were first sued in a class action lawsuit for not including engine immobilizers in their vehicles. |
| Preliminary Settlement Agreement | 2023 | The settlement terms were preliminarily agreed upon by KIA and Hyundai. |
| Preliminary Court Approval | 2023 | The preliminary approval granted by the court allows the settlement process to progress and for notifications to be sent to vehicle owners affected. |
| Exclusion/Objection Deadline | May 2024 | Vehicle owners must take action by this date if they want to opt out of the settlement or raise any objections to its terms. |
| Final Approval Hearing | July 2024 | A legal proceeding during which the judge will assess the settlement to grant final approval. |
| Claim Submission Deadline | January 2025 | Vehicle owners who are eligible must submit their claims by the specified date in order to qualify for compensation. |
| Claims Processing Begins | January 2025 | After the due date, the claims will be handled, and qualified individuals will start receiving their settlement benefits. |
Types of Compensation Available
The settlement aims to compensate for various expenses that vehicle owners or lessees may have incurred due to the lack of an engine immobilizer, making these vehicles more accessible to steal. Here’s a detailed breakdown of the compensation categories:
Theft-Related Compensation
- If a vehicle is stolen and not recovered, owners can receive up to 60% of its Black Book value.
- For damages resulting from theft or attempted theft, compensation will cover up to the greater of $3,375 or 33% of the costs incurred per incident. This includes the value of any personal property damaged or stolen during the theft.
Reimbursement for Additional Expenses
- If you’ve paid insurance deductibles due to theft or attempted theft, you may be eligible for reimbursement of up to $375.
- “Coverage may extend to include any rises in insurance premiums resulting from theft claims.”
- In the event of theft, owners have the opportunity to claim reimbursement for out-of-pocket expenses incurred, including but not limited to towing, transportation, and related penalties, up to a maximum of $250.
- In addition, the agreement permits reimbursement of up to $250 for lost income or childcare expenses incurred while dealing with the consequences of the theft or while acquiring the software upgrade.
Security Enhancements and Software Upgrades
- Owners of certain eligible models are eligible for a complimentary software upgrade aimed at enhancing their anti-theft security systems.
- If a software upgrade necessitates an OEM-issued key fob, owners may be eligible to receive a maximum of $350 per key fob, with a limit of two critical fobs per vehicle.
Anti-Theft Device Reimbursement
- Prior to the software upgrade, owners who had anti-theft devices like steering wheel locks or glass breakage alarms installed could receive up to $300 per vehicle as a reimbursement.
- KIA’s response to the theft issue includes providing a steering wheel lock. If you purchase additional security devices, the reimbursements are limited to a maximum of $250.
What You Should Know
This settlement offers affected vehicle owners an opportunity to recover a portion of the financial losses or increased costs due to the higher theft rates linked to the missing engine immobilizer. The software upgrades and compensation aim to make their vehicles safer and address theft-related impacts that may have occurred over the years. Eligible individuals need to submit their claims by the January 2025 deadline to ensure they receive the full benefits of the settlement.
By staying informed and understanding the settlement’s details, vehicle owners can ensure that they receive fair compensation and enhanced protection for their vehicles in the future.
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