Over the past three years, there has been a significant surge in thefts of certain Hyundai and Kia models, with theft insurance claims for these vehicles increasing by over 1000% between the first half of 2020 and the first half of 2023. This increase follows the circulation of social media posts demonstrating how to steal these vehicles. Data from the Highway Loss Data Institute, which monitors insurance statistics, revealed this dramatic rise in thefts.
In the first half of 2020, approximately 1.6 out of every 1,000 insured Hyundais and Kias were reported stolen, which was similar to the theft rate for all other car makes. But by the first half of 2023, the rate had soared to 11.2 per 1,000. In contrast, theft rates for cars from other manufacturers remained steady. The HLDI reported that during the first half of 2023, claims for theft of Hyundai and Kia vehicles were more than seven times higher than for cars from other manufacturers.
Certain older models of Hyundai and Kia manufactured between 2015 and 2019 are at higher risk of being stolen due to their turn-key ignitions, as compared to vehicles with push-start buttons. Entry-level versions of vehicles like the Hyundai Santa Fe and Tucson, as well as the Kia Forte and Sportage, are approximately twice as likely to be stolen than other cars of similar age.
According to the HLDI, many of these vehicles lack basic auto theft prevention technology, such as electronic immobilizers, which are standard in most other vehicles during the same time period. Electronic immobilizers use computer chips in both the vehicle and the key to confirm the authenticity of the key and its connection to the vehicle, deterring potential theft.
Hyundai and Kia are independent companies in the United States, but Hyundai Motor Group has a significant ownership stake in Kia, and many of their models share engineering. The latest models have improved security features.
According to HLDI data, certain states, including New York, Washington, and Delaware, saw significant increases in theft claims for Hyundai and Kia vehicles in the first half of last year. In Maryland, for instance, theft claims rose from four per 1,000 insured vehicles in the second half of 2022 to 14 in the first half of 2023.
The method of car theft using the metal tip of a USB cable gained popularity through social media, particularly TikTok.
The HLDI reported a significant increase in vandalism claims for Hyundai and Kia vehicles, reaching three times the rate of other vehicles in the first half of 2023. This surge was likely due to unsuccessful theft attempts.
The surge in thefts is likely due to a growing awareness of the vulnerability and methods for taking advantage of it, according to HLDI's senior vice president Matt Moore. Although social media initially spread the theft trend, traditional media stories have also highlighted the vulnerability of these vehicles. However, media coverage can also inform people about ways to safeguard their vehicles.
"I believe it's crucial to help consumers who own these vulnerable vehicles understand that there is a solution available," Moore stated.
Earlier this year, Hyundai and Kia reached a $200 million settlement with up to 9 million vehicle owners to resolve allegations of insufficient security measures in their vehicles. In addition to compensation for stolen and damaged vehicles, the settlement also involved the installation of anti-theft software and the expenses for other theft-preventative measures.
The problem has escalated to the point that some auto insurers in specific markets have outright declined to provide coverage for these older Hyundai and Kia models, a rare occurrence for insurers.
Both automakers have emphasized the measures they have implemented to offer customers anti-theft equipment and technologies. Additionally, they have collaborated with local law enforcement to provide steering locks to owners of these specific models. In a detailed statement, Kia spokesperson James Bell highlighted the company's ongoing efforts to assist customers in light of the growing trend of vehicle theft methods popularized on social media. He also encouraged eligible customers to install the software upgrade introduced by Kia earlier this year.
Hyundai said it has also set up temporary service centers in a number of major cities to install anti-theft software in vehicles.