Washington and 35 other states reached a settlement with Hyundai and Kia in which the automakers will provide restitution to consumers and fixes to millions of eligible vehicles nationwide that lacked industry-standard, anti-theft technology.

Washington Attorney General Nick Brown’s office announced details of the settlement Tuesday, in which Hyundai and Kia have agreed to:

• Equip all future vehicles sold in the U.S. with engine immobilizer anti-theft technology;
• Offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles, including vehicles that previously were only eligible for the companies’ software updates;
• Provide up to $4.5 million in restitution to eligible consumers whose cars are damaged by thieves; and
• Pay $4.5 million to the states to defray the costs of the investigation. 

Eligible car owners can receive up $4,500 for a total loss or up to $2,250 for a partial loss, according to compensation details on the settlement website. The claim deadline is March 31, 2027.

An engine immobilizer prevents thieves from starting a vehicle’s engine without the vehicle’s “smart” key, which stores the vehicle’s electronic security code. The lack of the necessary tech on cars resulted in “an epidemic of car thefts and joy riding” across Washington and the country,

“Security is a key piece for families looking to buy a vehicle, but Hyundai and Kia spent years selling people cars that lacked the industry’s standard protections,” Brown said in a statement. “Year after year, consumers have been easily victimized because of the automakers’ failure here.”

In late 2020, teenage boys began posting videos on social media describing how to steal the cars simply by removing a plastic piece under the steering wheel and using a USB cord. Posts with the hashtag “Kia Boys” racked up more than 33 million views on TikTok by September 2022, according to CNBC. The videos included teens engaged in reckless driving of the stolen vehicles.

Despite years of evidence, Hyundai and Kia waited until 2023 to launch a service campaign to update the software on most of the affected vehicles, Brown’s office said. The update was easily bypassed by thieves.

Seattle City Attorney Ann Davison filed a similar lawsuit against Kia and Hyundai in January 2023.

“The corporate choices by the automakers to cut corners has had very negative impacts and put the public at risk in Seattle,” Davison said in a statement Tuesday.

She added, “I am confident that we will prevail in our lawsuit, and the car companies will finally be required to help in the fight to improve public safety. My action is not to replace criminal prosecution of car thieves, but to hold corporate actors accountable for making choices that prioritize profit over public safety.”

In May 2023, Hyundai and Kia agreed to a consumer class-action lawsuit settlement worth $200 million over rampant thefts of the Korean automakers’ vehicles. The Seattle City Attorney’s Office said at the time that it was a “good first step for consumers” but that the settlement involving individual owners “does not include the litigation brought by the City.”

Under the new multistate settlement, eligible consumers will be notified by the companies that they will have one year from the date of the notice to make an appointment to have the zinc-reinforced ignition cylinder protector installed at their local Hyundai or Kia authorized dealerships. Consumers are urged to schedule the installation of the zinc-reinforce ignition cylinder protector as soon as possible.

Consumers who previously installed the software update on their vehicles (or were scheduled to do so) but nonetheless experienced a theft or attempted theft of their vehicle on or after April 29, 2025, are eligible to file a claim for restitution for certain theft and attempted-theft related expenses.  For more information about eligibility and how to submit a claim visit these sites for Hyundai and Kia.