Thefts Surge
Historically, Hyundai and Kia lagged far behind other automakers in equipping vehicles with passive immobilizers. Indeed, only about 6% of their vehicle series in 2015 had this basic anti-theft technology, compared to roughly 96% for all other manufacturers combined . As a result, theft claim frequencies for these brands were already higher in 2021—but the situation escalated sharply in 2022 and 2023.
By the second half of 2023, theft claims for 2003–2023 model year Hyundai and Kia vehicles had soared to 11.7 claims per 1,000 insured vehicle-years, compared to just 1.4 for vehicles from all other makes—a staggering eightfold difference . Theft frequency for these brands in that period was also more than 11 times what it had been in early 2020.
These figures underscore both how enduring the theft crisis has been and how Hyundai and Kia remain disproportionate targets, even after the introduction of deterrents.
Vapor Trail of Vandalism
Viral social media content, including the “Kia Challenge” trend and videos from the so-called “Kia Boys,” demonstrated how many of these cars—built without electronic immobilizers—could be stolen with nothing more than a USB cable or simple tools.
Responding to mounting pressure, both automakers began distributing free anti-theft software upgrades in February 2023, along with steering-wheel locks and ignition-cylinder protectors for models ineligible for software fixes.
The damage isn’t limited to stolen vehicles. Vandalism claims—often resulting from failed theft attempts—have also surged for these brands. Through the second half of 2023, vandalism claims for Hyundai and Kia were more than five times higher than those for other makes . For context, while their vandalism rates once mirrored or lagged behind other brands, a sharp divergence began in 2022 and continued through 2023.
Despite this spike, the severity (cost per claim) for vandalism on Hyundai–Kia vehicles remains lower than for other brands, likely reflecting broken windows or minor interior damage versus full-scale theft or collision claims .
Software Solution Shows Promise—With Limits
To address the looming crisis, Hyundai and Kia began offering free anti-theft software updates starting in February 2023. These updates effectively act as digital immobilizers, requiring the ignition key be inserted and the vehicle locked with the key fob for the alarm—and the “ignition kill” feature—to activate .
According to the HLDI, these updates yielded measurable benefits. Vehicles that received the software experienced a 53% reduction in overall theft claims and a dramatic 64% decrease in total vehicle theft compared to those without the update.
Despite this, the high baseline of theft continues. In the second half of 2023, even updated vehicles exhibited elevated rates relative to the broader vehicle population, and disparities in adoption rates mean many cars remain vulnerable.
Moreover, implementation has been uneven. By December 2023, only 30% of upgradable Hyundai vehicles and 28% of upgradable Kia vehicles had received the software, according to HLDI data. (Automaker-reported numbers were higher—around 60% as of mid-2024—but HLDI’s figures reflect confirmed implementation in the insurance data through December 2023) .
Geographic Hotspots of Theft and Damage
Theft and vandalism aren’t uniformly spread across the U.S.—some states have been especially afflicted. States like California, Colorado, Minnesota, Missouri, Nevada, Ohio, Oregon, and New Mexico experienced early spikes in theft claims, beginning as early as 2021 Other states—including Maryland, Washington, Kentucky, and Connecticut—saw emerging spikes in the latter half of 2022 through 2023.
Vandalism closely mirrored these theft patterns. Colorado, for instance, saw vandalism claims climb from fewer than 2 per 1,000 insured vehicle-years in early 2020 to over 12 by late 2023. Similar surges occurred in Wisconsin, Minnesota, California, Missouri, Nebraska, Nevada, Ohio, Oregon, and New Mexico.
What’s Next for Owners and Insurers?
The HLDI report paints a complex picture: the software upgrades yield quantifiable reductions—but only for those who’ve applied them, and only to a point. Vehicles remain vulnerable, and vandalism continues to be a costly byproduct of thwarted theft attempts.
Owners should urgently verify if their Hyundai or Kia is eligible and has received the software patch. If not, they should pursue the upgrade—keeping in mind that passive security still relies on proper use of the key fob—and consider supplementary physical deterrents (like steering-wheel locks) as a fallback.