From 2011 to 2022, several KIA and Hyundai models were manufactured without a key security feature that significantly reduces the risk of vehicle theft, the engine immobilizer. This essential system prevents a vehicle from starting unless the correct key is used, offering an additional layer of protection against theft. The absence of this feature in certain models led to a surge in thefts across the United States. A wave of instructional videos on platforms like TikTok, showing how easy it was to bypass the ignition system, further fueled the problem, making the situation worse for owners of these vehicles.
In response to the growing number of thefts and the apparent vulnerability of these vehicles, a KIA Hyundai Vehicle Class Action Lawsuit was filed. The lawsuit contended that the car manufacturers failed to install engine immobilizers in many of their vehicles, knowingly increasing the risk of theft for their customers. This omission led to substantial financial and emotional stress for vehicle owners, prompting legal action. To address this issue, the automakers agreed to a settlement that compensates vehicle owners for theft-related losses and provides a software update to enhance vehicle security.
KIA-Hyundai Vehicle Theft Settlement
The settlement offers a compensation fund valued between $80 million and $145 million, intended to reimburse vehicle owners for various theft-related losses and expenses. Additionally, affected owners are entitled to a software upgrade aimed at improving the security of their vehicles. This software update serves as a remedy for the missing engine immobilizer, enhancing vehicle protection and reducing the risk of theft.
Owners or lessees of eligible KIA and Hyundai vehicles can file claims for financial compensation related to vehicle theft, attempted theft, and other associated losses. Moreover, KIA and Hyundai have committed to reimbursing expenses for vehicle security upgrades, including the installation of anti-theft devices like steering wheel locks.
Eligibility for the KIA-Hyundai Vehicle Theft Settlement
To qualify for compensation under this settlement, you must have purchased or leased one of the specified KIA or Hyundai models within the United States or its territories, including Puerto Rico, the U.S. Virgin Islands, and Guam. The following KIA models are among those affected by the settlement:
- KIA Forte (2011-2021)
- KIA K5 (2021-2022)
- KIA Optima (2011-2020)
- KIA Rio (2012-2021)
- KIA Sedona (2011-2021)
- KIA Seltos (2021-2022)
- KIA Sorento (2011-2022)
- KIA Soul (2020-2022)
- KIA Sportage (2011-2022)
How to File a Claim: A Step-by-Step Guide
The process of filing a compensation claim is straightforward but requires careful attention to detail. Here is a comprehensive guide to help you navigate the claim process successfully:
1. Verify Vehicle Eligibility
The first step is to check if your vehicle qualifies for the settlement. To do this, visit the official settlement website and enter your Vehicle Identification Number (VIN). This will confirm whether your vehicle is part of the class action settlement and is eligible for compensation.
2. Gather Documentation
You will need to compile a set of documents that support your claim. These documents include:
- Proof of vehicle ownership or lease: This can be your purchase or lease agreement, title, or other documentation verifying your legal ownership.
- Theft or attempted theft documentation: If your vehicle was stolen or a theft attempt was made, you should provide police reports, insurance claims, or repair receipts.
- Receipts for out-of-pocket expenses: These could include costs related to the theft, such as insurance deductibles, repairs, and replacement of stolen items. Make sure you also include receipts for any vehicle security upgrades, like steering wheel locks, that you purchased.
3. Complete the Claim Form
You can fill out the claim form either online through the settlement website or by requesting a paper form from the claims administrator. Be sure to provide accurate information and attach all the required documentation to avoid delays in processing your claim.
4. Submit the Claim
Once you have filled out the claim form and attached the necessary documentation, submit it online or by mailing it to the designated address. Online submissions are generally faster and allow for easier tracking of your claim.
Key Dates and Settlement Timeline
The KIA-Hyundai Vehicle Theft Settlement follows a strict timeline to ensure that legal proceedings and claims are handled promptly. Eligible vehicle owners need to be aware of the important dates involved in the settlement:
- Lawsuit Filed: 2022 – The class action lawsuit was officially filed in 2022, addressing the missing engine immobilizers and the heightened risk of theft.
- Preliminary Settlement Agreement: Mid-2023 – An initial agreement was reached between the plaintiffs and the automakers, setting the terms of the settlement.
- Preliminary Approval by Court: Late 2023 – The court granted preliminary approval, initiating the process of notifying class members about the settlement.
- Exclusion/Opt-Out and Objection Deadline: May 3, 2024 – By this date, class members who do not wish to participate in the settlement must opt out or submit any objections.
- Final Approval Hearing: July 15, 2024 – This is when the court will hold a hearing to consider granting final approval of the settlement.
- Claim Submission Deadline: January 11, 2025 – All eligible claims must be submitted by this date to be considered for compensation.
- Claims Processing and Distribution: Starting in early 2025, the settlement administrators will begin processing claims and distributing payments to eligible vehicle owners.
Types of Compensation Available
The settlement provides several types of compensation to vehicle owners, depending on the nature of the loss and expenses incurred. Below is a detailed breakdown of the different forms of compensation offered:
1. Compensation for Theft or Attempted Theft
- If your vehicle was completely stolen and unrecovered, you may receive up to 60% of the vehicle’s Black Book value.
- For incidents of theft or attempted theft, you can receive compensation of up to $3,375 or 33% of the damage costs per incident. This also includes reimbursement for the value of any personal property stolen or damaged during the theft.
2. Reimbursement for Additional Expenses
The settlement also covers various additional costs that may have arisen as a result of the theft, including:
- Up to $375 for insurance deductibles you paid due to a theft or attempted theft.
- Compensation for increased insurance premiums caused by filing a theft claim.
- Up to $250 for towing, transportation, and penalties incurred as a result of the theft or attempted theft.
- Up to $250 total for lost income or childcare expenses associated with managing the aftermath of the theft or receiving the software upgrade.
3. Security Software Upgrades and Key Fobs
A major part of the settlement involves a free software upgrade for eligible vehicles. This software upgrade addresses the security flaw caused by the lack of an engine immobilizer, enhancing the vehicle’s theft protection.
- You may also be reimbursed for key fobs purchased in connection with the software upgrade. The reimbursement is capped at $350 per key fob, with a limit of two key fobs per vehicle.
4. Anti-Theft Device Installation
For owners who purchased additional anti-theft devices like steering wheel locks, glass breakage alarms, or similar security systems, the settlement offers reimbursement of up to $300 per vehicle. If KIA provided a steering wheel lock, any additional reimbursement for other devices is limited to $250.
The KIA and Hyundai Vehicle Theft Settlement represents an important step toward compensating vehicle owners for the vulnerabilities caused by the absence of engine immobilizers in certain models. If you own or lease one of the affected models, it is crucial to check your eligibility, gather the necessary documentation, and submit your claim by the January 2025 deadline. The settlement offers a range of compensations, from monetary reimbursement for theft-related losses to free software upgrades, ensuring that owners can regain peace of mind and enhanced security for their vehicles.
By participating in the settlement, vehicle owners can not only receive financial relief but also benefit from the improved security measures now available to protect their cars from future theft.