Dive Brief:
- A free software update being offered for Hyundai and Kia vehicles originally sold without electronic immobilizers and push-button ignition systems has cut vehicle theft rates by over half, according to a report from the Highway Loss Data Institute.
- The anti-theft software upgrade launched as a service campaign for almost 4 million Hyundai and 4.5 million Kia vehicles beginning in February 2023. It was rolled out in phases through May at no charge to customers.
- The spike in theft claims occurred after viral videos were posted on social media during the pandemic, which showed how easy it was to steal some Hyundai and Kia models that lacked factory-installed immobilizers or push-button ignition systems.
Dive Insight:
The software update helps address what had become a troubling trend for Hyundai and Kia owners: their vehicles had become among the most-commonly stolen vehicles in the past few years.
According to a May 2024 report from the National Insurance Crime Bureau, the Hyundai Elantra, Sonata and Kia Optima were the top three stolen vehicles in the U.S. in 2023. Some of these vehicles built before November 2021 are not equipped with push-button ignitions or immobilizer anti-theft devices.
As a result of the widely shared videos on social media, theft claims for Hyundai and Kia vehicles in the second half of 2023 were 11 times higher than in the first half of 2020. From July to December 2023, Hyundai and Kia thefts were 8 times as high as other brands, according to a separate HLDI study.
Although the HLDI study ended in December 2023, Hyundai and Kia have been steadily updating the software in older vehicles, including Tucson and Elantra models from 2011-2022. As of mid-July, approximately 60% of eligible vehicles have received the software update. Hyundai also offers customers a window sticker alerting would-be thieves that the vehicle is equipped with anti-theft protection.
As a result of the software updates, the frequency of whole vehicle theft fell by 64% for Hyundai and Kia vehicles. The HLDI calculated this change by comparing the cost of the claim to the amount insurers pay for the same model if totaled as a result of an accident.
“The companies’ solution is extremely effective,” said Matt Moore, senior vice president of HLDI, in a press release. “If you own a Hyundai or Kia vehicle without an electronic immobilizer, you should call your local dealer about getting the software upgrade today.”
However, some lower trim models without immobilizers are ineligible for the software update, since these vehicles lack an alarm system. Kia also developed an ignition cylinder protector to reinforce the key cylinder assembly as an additional theft deterrent on these vehicles.
Despite the high number of vehicles that received the software, theft claims for Hyundai and Kia vehicles remain high. According to the HLDI, this may be due to the fact that the software-based immobilizer only activates the “ignition kill” feature if a driver locks their vehicle using the keyfob, and not by pressing the door lock switch.
Vandalism claims were also higher for Hyundai and Kia vehicles with the anti-theft software update than those without it. In the second half of 2023, these claims were 6 times as high as the first half of 2020 and 5 times higher in the July-December 2023 period compared to other brands.
The spike in vandalism claims is likely the result of failed theft attempts, which commonly results in vehicle damage, such as broken windows, scratched doors or steering column damage, according to the HLDI. But now that the word is out that Hyundai and Kia vehicles are no longer easy targets for car thieves, the HLDI expects that vandalism claims will decrease.
“Based on these trends, we expect claim rates for Hyundai and Kia vehicles to gradually drop back in line with those of other brands, as thieves learn they’re no longer so easy to steal and the fad gets stale,” Moore said.
By 2022, immobilizers were installed on 84% of Hyundai and Kia models, compared with 96% of models from other brands. Today, all new Hyundai and Kia models come equipped with an immobilizer as standard.
