Hyundai and Kia Theft Claims Surge Over 1,000% Since 2020, Prompting Industry and Social Media Scrutiny

Theft claims for select Hyundai and Kia models have skyrocketed by more than 1,000% since 2020, a staggering increase linked to social media posts disseminating theft techniques.

According to data from the Highway Loss Data Institute (HLDI), theft insurance claims for vulnerable Hyundai and Kia vehicles surged, rising from 1.0 out of every 1,000 insured vehicles in the first half of 2020 to a concerning 11.2 per 1,000 by the first half of 2023.

The HLDI revealed that during the first half of 2023, Hyundai and Kia theft claims were more than seven times higher than those for vehicles from other manufacturers. Older models produced between 2015 and 2019, equipped with turn-key ignitions, are particularly susceptible to theft, lacking basic auto theft prevention technology present in most other vehicles.

The vulnerability of certain Hyundai and Kia models stems from a method circulated on social media, notably on platforms like TikTok, where thieves use the metal tip of a USB cable to start the car. Vandalism claims for these vehicles also surged, peaking at three times the rate of other vehicles on the market in the first half of 2023, likely due to failed theft attempts.

States such as New York, Washington, and Delaware experienced notable increases in Hyundai and Kia theft claims during the first half of the previous year. The HLDI data indicated a rise in Maryland from four theft claims per 1,000 insured vehicles in the last half of 2022 to 14 in the first half of 2023.

The surge in thefts prompted Hyundai and Kia to settle a $200 million agreement with up to 9 million vehicle owners earlier this year. The settlement aims to address claims that the automakers did not adequately secure the vehicles. In addition to compensating for stolen and damaged vehicles, the settlement includes the installation of anti-theft software and other theft-preventative measures.

Matt Moore, Senior Vice President at HLDI, highlighted the importance of informing consumers about available remedies and protective measures. Both Hyundai and Kia emphasized the steps they have taken to provide anti-theft equipment and technologies to customers, working with local police to distribute steering locks and urging owners to install software upgrades.

The widespread nature of the issue has led some auto insurers in certain markets to decline coverage for these older Hyundai and Kia models, a rare move in the insurance industry. As the trend gains attention, industry experts stress the importance of raising awareness about vehicle vulnerabilities while educating owners about protective measures.