Software update changes course of Kia and Hyundai car thefts, data shows

According to the National Insurance Crime Bureau, six of the 10 most frequently stolen cars last year had Hyundai or Kia badges. While master thieves can usually break in and drive away with a parked vehicle of their choosing fairly quickly, the wave of car thefts in Korea was sparked by instructions widely circulated on the Internet that made it easy for even novice criminals to exploit them with nothing more than a flat screwdriver and a USB cable.

As it turns out, the most frequently stolen Kia and Hyundai models are versions of some of their most popular cars and SUVs from previous model years that still use a traditional key system to turn the car on and activate the ignition. They were found to be almost twice as likely to be stolen as similar models equipped with a push-button start system, which is often limited to more expensive vehicles and/or trim levels.

It’s worth noting that unlike most keyless entry cars that otherwise have an electronic immobilizer, the Kias and Hyundais in question didn’t have a way to disable the vehicle unless they recognized the computer chip built into the key. Earlier this year, State Farm and Progressive announced they would begin denying coverage for the affected models.

Hyundai and Kia reportedly reached a $200 million settlement earlier this year with about 9 million vehicle owners to cover the costs of stolen or damaged vehicles.

That includes a software update for the most theft-prone models, which was offered to owners of about two dozen models from 2011 to 2022, that prevents the vehicles from starting if the original key (or an exact duplicate) is not in the ignition. The models also get a window sticker that identifies them as having the anti-theft software installed.

According to reports, around 60% of eligible vehicles have received the free update by mid-July, and its effects are already expected.

The frequency of whole-vehicle thefts, as calculated by HLDI, is now down an estimated 64% for Kia and Hyundai vehicles that have undergone a facelift. Previously, HLDI reported that thefts of older Hyundai and Kia models had increased by 1,000% since the start of the pandemic by the first half of 2023.

On the other hand, vandalism claims for Hyundai and Kia models, particularly broken windows, scratched doors and damaged steering columns caused by failed break-in attempts, remain a problem. HLDI data shows that the frequency of vandalism claims for the brands was six times higher in the second half of 2023 than in the first half of 2020. This was five times higher than the number reported for other brands during the same period.

Once the new software is installed, vehicles will only start if the owner’s key or an identical duplicate is in the ignition. Vehicles with the software also receive a window sticker indicating they have received the security update. In addition, free steering locks are available for owners of models that cannot be updated via software.

According to HLDI, while electronic immobilizer chips were standard equipment in 92% of other brands’ vehicles in 2011, they were only fitted to 17% of Hyundai and Kia cars at the time. Fortunately, in subsequent model years, more of those automakers’ cars and SUVs began adopting them, and by 2023, they were standard across both lines.

Unfortunately, some versions of selected models without immobilizers are still not eligible for the software update because they do not have the original alarm systems. Owners of these models are offered free steering locks as an alternative.

HLDI warns that even with the new software installed, thefts from Hyundai and Kia cars will still be higher than average because the immobiliser will only work when the vehicle is locked using the remote key; it will not help if the owner locks the car using the switch on the door handle (or if they leave the car unlocked).

“The companies’ solution is incredibly effective,” says Matt Moore, senior vice president of HLDI. “If you have a Hyundai or Kia vehicle without an electronic immobilizer, you should call your local dealer and request a software update today.”