Kia and Hyundai have reached a major settlement in which eligible vehicle owners will receive a one-time payment of as much as $3,375. The move is part of broad-ranging efforts by the companies to rectify security vulnerabilities in models that have made some car models targets of thieves. With total payout estimated at $145 million, it is important that affected owners understand the details of this settlement and how to apply.
Settlement background
The settlement involves a class-action lawsuit filed against Kia and Hyundai for allegedly failing to install adequate anti-theft devices in vehicles manufactured between 2011 and 2022. While most of its competitors had fitted their models with engine immobilizer, Kia and Hyundai stuck to using conventional turn-key ignition systems that made their vehicles highly vulnerable to theft.
But the problem got highly publicized in the form of a viral TikTok challenge called the “Kia Boys,” which demonstrated just how easily those vehicles could be stolen using minimal tools. That coincided with a nationwide spike in car thefts that prompted legal action from affected owners across several states.
Who qualifies for it?
In fact, owners or leesers of certain Kia and Hyundai models that were stolen, damaged, or completely lost because of these security gaps can be compensated. The settlement tries to reach all the persons who suffered losses due to the theft or loss of the automobile.
To be eligible for the one-time payment, you have to:
- Own or lease an affected vehicle manufactured between 2011 and 2022.
- Provide Proof of ownership or leasing.
- File your Claim in a timely manner
How much will you receive?
Eligible claimants will be entitled to payments depending on what happened in their case:
- Individuals who are able to show that their car was stolen or severely damaged may receive awards up to $3,375.
- Claimants experiencing theft can have additional reimbursement for various out-of-pocket theft-related expenses. These additional costs include but are not limited to insurance deductibles, towing charges, and related penalties due to theft.
- The exact value of this claim will be decided by the nature of your claim and the evidence you can offer during your application process.
Key dates
It is a matter of great importance for Class Members to act quickly. The date for filing claims shall be January 11, 2025. Any claims thereafter that have not been filed shall be excluded from compensation.
Mailing of notices about the settlement is expected to begin by March 4, 2025. Owners can begin filing their claims online or by mail.
Filing your claim
To submit your claim, do as follows:
- Gather documentation: Secure proof of ownership, like the title or registration of your vehicle, and documents related to theft or damage.
- Check the settlement website: Once the notices are mailed, detailed information will be available on the official settlement website. Kia settlement website and Hyundai settlement website
- File your claim: You’ll want to file your claim on the designated website by the deadline in January.
- Document everything: Make copies of every document you mail out and any correspondence with the settlement administrator.
Improved security
With these security issues becoming much more significant, Kia and Hyundai have taken the following steps to finally give resolution to these problems:
- Free anti-theft software upgrades: The companies have been offering free upgrades at temporary service locations across the country, and these will go a long way in securing the vehicles by eliminating the weak points in the engine immobilizers.
- Distribution of steering wheel locks: Kia and Hyundai have distributed more than 340,000 free steering wheel locks in concert with local law enforcement to provide additional protection for affected vehicles.
