Kia and Hyundai Theft Improvement

The National Insurance Crime Bureau has reported that six out of the ten most stolen vehicles last year were Hyundai and Kia models. The vehicles most frequently targeted are older versions of popular cars and SUVs that utilize a traditional turn-key ignition system, lacking the electronic immobilizers found in most modern vehicles. This vulnerability has made these models particularly appealing to thieves. In response to the rising theft rates, insurance companies like State Farm and Progressive have announced they will deny coverage for these affected models. Earlier this year, Hyundai and Kia reached a $200 million settlement with approximately 9 million vehicle owners, which includes a software upgrade aimed at enhancing security for the most theft-prone models. This upgrade prevents the vehicles from starting unless the original key or a precise duplicate is used. As of mid-July, around 60% of eligible vehicles have received the no-cost software update, resulting in a significant 64% reduction in theft rates for upgraded Kia and Hyundai models. However, the brands still face challenges, as theft claims for vandalism were reported to be six times higher in the latter half of 2023 compared to early 2020. While the new software is effective, some models remain ineligible for the upgrade due to the absence of original-equipment alarm systems. Additionally, the immobilizer feature only activates when the vehicle is locked with the key fob, leaving unlocked cars vulnerable to theft.