Kia and Hyundai vehicles are known for their affordability and stylish design. However, recent legal developments have put these automakers under scrutiny. A class action lawsuit has been filed against Kia and Hyundai due to a flaw in certain models that makes them highly vulnerable to theft. If you own a Kia or Hyundai vehicle, this update is crucial for you.
Why Is There a Class Action Lawsuit Against Kia and Hyundai?
Kia and Hyundai, both part of the Hyundai Motor Group, are facing lawsuits from various U.S. cities, including New York City. The primary issue? A significant number of their vehicles lack engine immobilizers, a security feature that prevents a car from starting without the correct key.
How Did This Issue Gain Attention?
- Viral videos on platforms like TikTok demonstrated how easy it was to steal these vehicles using simple tools like USB cables and screwdrivers.
- This led to a massive increase in car thefts, particularly among Kia and Hyundai models lacking immobilizers.
- In response, several cities, including NYC, took legal action against the automakers, holding them accountable for their negligence.
Kia-Hyundai Class Action Lawsuit Settlement: $3,375 Compensation
Kia and Hyundai have agreed to a $200 million settlement to compensate affected vehicle owners. The lawsuit covers nearly 9 million customers whose cars were either stolen or damaged due to the immobilizer issue.
Compensation Details
Eligible customers may receive:
- Up to $3,375 or 33% of the vehicle’s value for theft-related damages.
- $250 reimbursement for purchasing and installing theft prevention devices.
- $375 for increased insurance premiums and deductibles due to vehicle theft.
Kia-Hyundai Settlement Payment Dates
The exact payment dates are yet to be confirmed. However, Kia and Hyundai announced that they would roll out a software update for 8.3 million vehicles to help reduce theft risks.
Timeline Highlights:
- March 2025: The companies confirmed that they would introduce security updates for vehicles lacking theft protection immobilizers.
- Final Approval Pending: Payments will only be processed once the court gives its final approval.
Who Is Eligible for the Kia-Hyundai Settlement?
To qualify for the settlement, you must have owned or leased an eligible Kia or Hyundai model in the U.S.
Eligible Vehicles
| Year | Car Model |
|---|---|
| 2011-2021 | Kia Forte |
| 2021-2022 | Kia K5 |
| 2011-2020 | Kia Optima |
| 2012-2021 | Kia Rio |
| 2011-2021 | Kia Sedona |
| 2021-2022 | Kia Seltos |
| 2011-2022 | Kia Sorento |
| 2020-2022 | Kia Soul |
| 2011-2022 | Kia Sportage |
Additionally, customers who have already received a steering wheel lock from a Kia or Hyundai dealer or law enforcement may still claim a $250 reimbursement for purchasing and installing additional security measures.
What Can You Claim?
The lawsuit provides two types of compensation:
- Software Upgrade: Some vehicles will receive a security software update to prevent unauthorized access.
- Monetary Compensation: If your vehicle is not eligible for a software upgrade, you can claim financial compensation.
Additional Reimbursements:
- $375 for insurance-related costs due to a qualifying theft.
- $250 for installing theft-prevention measures like glass break alarms.
- Reimbursement for stolen or damaged personal belongings during a theft.
Final Thoughts
The Kia-Hyundai Class Action Lawsuit settlement is a step toward justice for affected car owners. While the software update aims to fix security loopholes, financial compensation ensures that victims receive some relief. If you own an eligible Kia or Hyundai model, consider filing your claim once the final approval is announced.
FAQs
1. When will Kia and Hyundai start paying settlement claims?
The exact payment dates are still unconfirmed. However, the settlement will be processed once the court gives final approval.
2. How do I know if my car is eligible for compensation?
Check the list of eligible vehicles above. If your model is included and was stolen or damaged due to the immobilizer issue, you can file a claim.
3. What if my Kia or Hyundai was stolen before the lawsuit was filed?
The settlement applies to theft-related damages that occurred before the lawsuit’s resolution. If your car was stolen or damaged, you may still qualify for compensation.
4. Can I get both a software upgrade and monetary compensation?
No. If your vehicle qualifies for a security software upgrade, you will not receive financial compensation. However, if your car is not eligible for the update, you may be entitled to a monetary payout.
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Sachin is an experienced writer with a strong background in education-related content. With years of expertise in creating informative and engaging material, he covers topics such as teaching strategies, educational technology, and learning methodologies. His work aims to inspire both educators and learners, reflecting his deep understanding of the evolving education landscape.
