Some Hyundai and Kia users may be entitled to a one-time payment due to security issues resulting from vehicle theft. Such reimbursement is part of a court settlement that will compensate owners affected by vulnerabilities in some of these companies’ models. However, there is a deadline to apply for the compensation, so they should act fast before the deadline expires, and they miss out on this one-off payment of more than $3,000.
This is an unprecedented case involving Kia and Hyundai. Both brands have reached a $145 million court settlement to compensate users with a one-time payment for lack of anti-theft technology. Notably, the settlement was reached without either manufacturer admitting to any wrongdoing.
Legal Complaints
The settlement comes after a large number of customers from different cities in the United States filed complaints against both manufacturers. These customers claimed that the vehicles lacked adequate anti-theft features. Specifically, they complained about the lack of engine immobilizers, which left their vehicles very exposed.
Recall that these security devices prevent vehicles from starting without the correct key or remote control. This was a standard feature on many other manufacturers’ cars at the time. Also, while competitors install engine immobilizers, Kia and Hyundai continued to use traditional key-in-hand ignition systems. This left their automobiles more vulnerable to the action of criminals.
Details of the settlement
Although neither company admitted responsibility for the allegations in these reports, they reached a million-dollar settlement. According to Kia and Hyundai, they will provide $145 million in compensation as a one-time payment to vehicle owners. The settlement is intended to address the concerns of their users and ensure that drivers receive the necessary support after facing safety risks.
Because of this situation, Kia and Hyundai have launched initiatives to improve vehicle safety. One of them is offering free anti-theft software updates at pop-up events across the United States since May. With these upgrades, the manufacturers address the lack of engine immobilizers in older models. Both partnered with law enforcement to distribute free steering wheel locks to provide additional protection and peace of mind to their customers.
How to claim the one-time payment from Kia and Hyundai
Kia and Hyundai owners will be able to receive the one-time payment of $3,375 if they qualify. To do so, they will need to submit a formal claim and proof of ownership of the affected vehicles. Owners should visit the settlement website or contact the manufacturers’ customer service. This way, they will be able to get details on how to file their claim before time runs out.
Safety recommendations from the companies
Kia and Hyundai, in addition to the one-time payment, provided a series of recommendations to protect the safety of their vehicles. Despite their efforts to solve the reported problems, car safety is still a concern for many drivers. Therefore, they decided to recommend some proactive measures to help prevent theft, such as:
- Always lock your doors.
- Use a steering wheel lock.
- Install an alarm system.
- Parking in well-lit, high-traffic areas.
- Adding a GPS tracking device.
- Install an engine immobilizer if not already present.
- Keep valuables out of sight.
