Oregon Signs Onto Hyundai Kia Settlement Over Security Flaws but Offers Little Relief to Drivers Hit With Sky High Insurance
A coalition of 36 states, including Oregon, settled with Hyundai and Kia yesterday following the exposure of their vehicles as easy targets for thieves after a TikTok video went viral in 2022.
Future cars from these manufacturers will have better security, but there’s not much to compensate owners who were unable to insure their vehicles or pay sky-high premiums over the last two years.
Oregon Settles With Hyundai & Kia Over Security Deficiencies
Oregon Attorney General Dan Rayfield indicated yesterday that 36 states had settled with the automobile manufacturers over the sale of millions of vehicles nationwide that lacked industry-standard anti-theft technology.
Source: Oregon Department of Justice media release on the Hyundai and Kia multistate settlement dated Dec 16 2025
Dailytidings.com
The Kia Boys TikTok trend- stealing specific Hyundai and Kia vehicles in under a minute without the vehicle’s “smart” key resulted in an epidemic of car thefts and joyriding across the country.
In terms of the settlement, Hyundai and Kia have agreed to:
- Equip all future vehicles sold in the US with industry-standard engine immobilizer anti-theft technology.
- Provide free zinc-reinforced ignition cylinder protectors to eligible cars, including those previously only eligible for the company’s software updates- a move that could cost over $500 million nationwide.
- Pay up to $4.5 million in restitution to eligible consumers whose cars are damaged by thieves.
- Pay $4.5 million to the states for investigation costs.
AG Rayfield said, “Hyundai and Kia will now provide real, physical protections at no cost, and that means fewer thefts, safer streets, and some peace of mind returned to people who were unfairly put at risk.”
Settlement With Kia & Hyundai Doesn’t Cover Past Insurance Increases
The settlement addresses several concerns that arose from the trend, which resulted in insurers like State Farm blacklisting 105 Kia and Hyundai models in Oregon due to their vulnerability to theft in January 2023.
At the time, the Portland Police Bureau (PPB) reported that Kia and Hyundai were in the top 10 stolen models in the city.
Their data shows that 103 Hyundais were stolen in December 2022 alone, compared to 10 in December 2021, while 198 Kias were stolen in December 2022- a steep increase from just nine stolen during the same month the previous year.
Regarding the settlement, eligible consumers will have one year from the date they receive the company’s notice to schedule an appointment to have the zinc-reinforced sleeve installed at their local Hyundai or Kia authorized dealership.
| Step | Who this applies to | What to do |
|---|---|---|
| Watch for notice | Owners or lessees of eligible vehicles | Your 1 year scheduling window starts when the company notice arrives |
| Schedule free hardware | Eligible vehicles | Book an appointment at a local Hyundai or Kia authorized dealership for the zinc reinforced ignition cylinder protector |
| Restitution claim option | People who installed or were scheduled for the software update, but still had theft or attempted theft on or after Apr 29 2025 | Use the claim pages listed in the article: HKMultistateimmobilizersettlement.com or https://customercare.kiausa.com/SWLD |
| Kia phone line | Kia owners who need help | Call (800) 333 4Kia (4542) |
Attorney General Rayfield urges consumers to schedule the installation of the zinc-reinforced ignition cylinder protector as soon as possible.
Consumers who experienced a theft or attempted theft despite previously installing the software update on their vehicles (or being scheduled to do so) on or after April 29, 2025, can file a claim for restitution for certain theft and attempted-theft-related expenses. To find out about eligibility and how to submit a compensation claim, visit:
- Hyundai: www.HKMultistateimmobilizersettlement.com
- Kia: https://customercare.kiausa.com/SWLD or call (800) 333-4Kia (4542)