The Kia Challenge is a viral social media trend that began on TikTok in 2021, when teenagers in Milwaukee posted videos showing how to steal certain Hyundai and Kia vehicles in under a minute using a USB cable and a screwdriver. The thefts exploited a real design gap: millions of these cars were sold without engine immobilizers, the electronic anti-theft feature standard on almost every other automaker’s vehicles. If you own an affected Hyundai or Kia, there is now a free software update or hardware fix available, and you may be able to recover money through two separate nationwide settlements.
Which Cars Are Affected
The vulnerability covers Hyundai models from 2008 through 2022 and Kia models from 2011 through 2022 that use a traditional turn-key ignition. Push-button start models are not affected. An engine immobilizer prevents a car from starting unless it reads the correct electronic code from the owner’s key; without one, a thief can pry off the plastic cover around the steering column, pull out the ignition cylinder, and turn the exposed switch with a USB plug or similar metal object.
As of 2015, only 26% of Hyundai and Kia vehicles sold in the United States had immobilizers, compared with 96% for other automakers.1Washington State Attorney General. States Settle With Hyundai, Kia Over Failure to Equip Vehicles With Anti-Theft Technology By 2022 the figure had risen to 84%, but roughly 8.3 million vulnerable cars were already on the road: about 3.8 million Hyundais and 4.5 million Kias. Engine immobilizers became standard on new Hyundai and Kia models produced after November 2021.2NBC News. Hyundai, Kia Thefts and Recall: Does My Car Have an Engine Immobilizer
How Bad the Thefts Got
Theft insurance claims for vulnerable Hyundai and Kia models rose more than 1,000% between the first half of 2020 and the first half of 2023, from 1.0 per 1,000 insured vehicles to 11.2 per 1,000. During that stretch, theft claims on these models ran more than seven times higher than for all other manufacturers combined.3CNN. Hyundai and Kia Thefts Increased 10-Fold In 2023, Kia and Hyundai models held six of the top ten slots on the National Insurance Crime Bureau’s most-stolen list, with the Hyundai Elantra (48,445), Hyundai Sonata (42,813), and Kia Optima (30,204) in the top three.4National Insurance Crime Bureau. 2023 Vehicle Theft Trends Report
NHTSA linked the challenge to at least 14 crashes and 8 deaths as of February 2023.5NHTSA. Hyundai and Kia Launch Service Campaign to Prevent Theft of Millions of Vehicles The deadliest single incident was an October 2022 crash in Buffalo, New York, in which four teenagers in a stolen Kia Sportage were killed on Route 33.6The Independent. Buffalo Teen Crash Linked to TikTok Kia Challenge
The Free Fix From Hyundai and Kia
Starting in late February 2023, Hyundai and Kia began offering a free anti-theft software update for eligible vehicles. The update lengthens the alarm from 30 seconds to one minute and, more important, requires the owner’s key to be in the ignition for the engine to start, acting as a software immobilizer.5NHTSA. Hyundai and Kia Launch Service Campaign to Prevent Theft of Millions of Vehicles It is available for roughly two dozen Hyundai and Kia models from the 2011–2022 range, though some trim levels that shipped without alarms are not eligible.
One catch: the immobilizer feature only engages when the car is locked with the key fob. Locking from the door handle button does not activate it.7Insurance Institute for Highway Safety. Anti-Theft Software Tamps Down Viral Theft Trend Targeting Hyundai Kia Vehicles Even so, the Highway Loss Data Institute reported that whole-vehicle theft claims for updated cars dropped 64% by December 2023. As of mid-July 2024, about 60% of eligible vehicles had received the update.8Wards Auto. Stolen Hyundai and Kia Down With Anti-Theft Software Update
The automakers have also distributed tens of thousands of free steering wheel locks through local police departments, and Hyundai will reimburse owners who already bought their own. Under the December 2025 multistate settlement described below, owners can now also request a free zinc-reinforced ignition cylinder protector, which is a hardware fix rather than a software one.9California Attorney General. Attorney General Bonta Secures Settlement With Hyundai and Kia
Insurance Headaches for Owners
Even owners whose cars were never stolen felt the fallout. Progressive raised rates and restricted new policies on affected models in some areas, with a spokesman saying the cars were “almost 20 times more likely to be stolen than other vehicles” in some markets.10CNN. Progressive and State Farm Restrict Coverage for Hyundai and Kia State Farm temporarily stopped writing new business on certain model years and trims in some states, and Allstate imposed similar limits. Restrictions have shown up in Louisiana, Georgia, Oregon, Washington, and Pennsylvania, targeting 2015–2021 models including the Hyundai Elantra, Tucson, and Accent and the Kia Soul, Sportage, Forte, and Optima.11MarketWatch. Insuring Your Kia or Hyundai Hyundai has partnered with AAA to offer alternative coverage for owners who cannot find policies elsewhere.12Hyundai Anti-Theft. Hyundai Anti-Theft Resources
The Class Action Settlement
Owners and lessees sued Hyundai and Kia in a consolidated multidistrict case in the Central District of California, arguing that the missing immobilizer was a known defect. Judge James V. Selna granted final approval of a class action settlement on October 1, 2024, valued at more than $200 million, with estimated cash relief of at least $145 million.13Ninth Circuit Court of Appeals. Plaintiffs’ Consumer Class v. Hyundai Motor Company; Kia Corporation, No. 24-7080
Benefits available to class members include:
- The free anti-theft software upgrade for eligible vehicles.
- Up to $300 reimbursement for a steering wheel lock or glass breakage alarm if your vehicle cannot receive the software update.
- Up to $3,375, or 33% of the vehicle’s market value, per incident for theft-related vehicle damage.
- Up to $375 per incident for insurance deductibles and premium increases.
- Up to $250 per incident for towing and other out-of-pocket costs.
- Up to $350 for a replacement key fob needed to complete the upgrade.
- Up to 60% of the vehicle’s market value for a total loss.
The claim deadline was April 28, 2025.14Kia Theft Settlement. Kia Theft Settlement Two objectors appealed, and on January 8, 2026, a three-judge Ninth Circuit panel affirmed approval, finding the district court had properly weighed every required factor and given a “reasoned response to all non-frivolous objections.” Objector Donald Birner’s claim that the settlement was too small was called “largely unsupported by the record.” On February 25, 2026, the Ninth Circuit granted summary disposition on the last related appeal, and the following day denied rehearing, clearing the way for payments.15Mealey’s Litigation Report. 9th Circuit Panel Denies Remaining Challenges to Kia Hyundai Theft Settlement
The Multistate Attorney General Settlement
In December 2025, a coalition of 36 state attorneys general announced a separate settlement with Hyundai and Kia. The automakers agreed to equip all future U.S. vehicles with engine immobilizers and to offer free zinc-reinforced ignition cylinder protectors to owners and lessees of eligible 2011–2022 models. The deal includes up to $4.5 million in restitution for consumers who suffered a theft or attempted theft on or after April 29, 2025, despite having previously received the software update. Payouts are capped at $4,500 for a total loss, $2,250 for a partial loss, and $375 for an attempted theft. The automakers are also paying $4.5 million to the participating states to cover investigation costs.9California Attorney General. Attorney General Bonta Secures Settlement With Hyundai and Kia
Participating states are Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, and Wisconsin.16Wisconsin Department of Justice. Wisconsin DOJ Press Release on Kia Hyundai Settlement The claim deadline is March 31, 2027, and claims are filed at HKMultistateimmobilizersettlement.com.17HK Multistate Immobilizer Settlement. Hyundai Kia Multistate Immobilizer Settlement
Why There Was No Federal Recall
NHTSA declined to issue a mandatory recall. The agency took the position that the absence of an engine immobilizer did not meet the definition of a “safety defect or noncompliance” under current Federal Motor Vehicle Safety Standards, which do not require immobilizers.2NBC News. Hyundai, Kia Thefts and Recall: Does My Car Have an Engine Immobilizer That is why the fix is a voluntary service campaign rather than a formal recall, meaning it carries none of a recall’s mandatory owner notification or completion-tracking requirements.
In April 2023, a coalition of 18 state attorneys general led by California’s Rob Bonta formally asked NHTSA to order a recall, arguing the vehicles violated Federal Motor Vehicle Safety Standard 114 and posed an “unreasonable risk to public safety.” They also pointed out that the voluntary campaign could not reach an estimated 15% or more of affected vehicles.18California Attorney General. State Attorneys General Letter to NHTSA Regarding Hyundai and Kia Recall NHTSA has not acted on that request, and FMVSS 114, the standard governing starting systems, had not been amended in 17 years as of 2023.
Cities Suing Separately
Cities have brought their own lawsuits alleging that the missing immobilizers strained police, emergency, and recovery resources. Plaintiffs include Buffalo, Cincinnati, Cleveland, Columbus, Green Bay, Indianapolis, Kansas City, Madison, Milwaukee, New York, Parma, Rochester, San Diego, Seattle, St. Louis, and Yonkers.19Fox Business. Cities Sue Hyundai Kia After Car Thefts The cases were consolidated as multidistrict litigation in the Central District of California. The district court denied the automakers’ motion to dismiss the negligence and public nuisance claims in November 2023, and on June 20, 2025, the Ninth Circuit affirmed that denial, letting the suits go forward. The appeals court also certified a question to the New York Court of Appeals on whether the manufacturers owed New York municipalities a duty of reasonable care, which could affect the New York plaintiffs’ claims.20Ninth Circuit Court of Appeals. City of Buffalo et al. v. Kia Corp., No. 24-2350 The municipal cases are separate from the consumer class action and do not affect what an individual owner can claim.