Attorney General Kwame Raoul announced that Hyundai and Kia have agreed to a bipartisan, multistate settlement addressing the sale of millions of vehicles that lacked industry-standard anti-theft technology—an omission that contributed to a nationwide car theft crisis and significantly impacted communities in Illinois.
Raoul joined a coalition of 35 attorneys general who reached the settlement with the automakers after years of increased vehicle thefts tied to Hyundai and Kia models manufactured without engine immobilizers, a basic anti-theft feature designed to prevent vehicles from operating without a key or key fob.
“This settlement will ensure consumers can effectively protect their vehicles from theft while protecting communities in Illinois and across the country,” Raoul said in a statement. He urged affected vehicle owners to schedule installation of the new anti-theft hardware or file a theft compensation claim as soon as possible.
Under the terms of the agreement, Hyundai and Kia must equip all future vehicles sold in the United States with industry-standard engine immobilizer technology. The companies will also offer free zinc-reinforced ignition cylinder protectors to owners and lessees of eligible vehicles, including some vehicles that previously qualified only for software updates.
In addition, Hyundai and Kia have agreed to provide up to $4.5 million in restitution to eligible consumers whose vehicles were damaged by theft or attempted theft. The companies will also pay $4.5 million to participating states to help offset the costs of the multistate investigation.
According to the coalition, from approximately 2011 through 2022, Hyundai and Kia failed to include anti-theft immobilizers on certain vehicle models sold in the United States, despite equipping the same models with immobilizers in other countries. As a result, thefts involving these vehicles surged nationwide, with stolen cars frequently used in additional crimes.
The impact was particularly severe in Chicago. In 2022 alone, more than 7,000 Hyundai and Kia vehicles were stolen in the city, accounting for approximately 10 percent of all registered Kia vehicles and 7 percent of all registered Hyundai vehicles in Chicago. Raoul joined other attorneys general in 2023 in calling on the automakers to take swift and comprehensive corrective action.
Beyond the immediate risk of theft, Hyundai and Kia owners also faced insurance challenges. The coalition noted that several major insurance companies declined to insure certain Hyundai and Kia models deemed especially vulnerable to theft, leaving many owners with limited or costly coverage options.
Hyundai and Kia initially responded by launching a service campaign to update software on many affected vehicles. The companies also offered to install zinc-reinforced ignition cylinder protectors, but only for roughly 20 percent of vehicles that were ineligible for the software update. State attorneys general later alleged that the software updates could be easily bypassed and did not adequately prevent theft.
The settlement expands eligibility for the zinc-reinforced ignition cylinder protectors to all consumers with qualifying vehicles, regardless of whether they previously received a software update. Owners and lessees will have one year from the date they receive notice from Hyundai or Kia to schedule a free installation at an authorized dealership.
The agreement also provides relief for consumers whose vehicles were still targeted despite earlier mitigation efforts. Individuals who installed, or were scheduled to install, a software update but experienced a theft or attempted theft on or after April 29, 2025, may file claims for restitution covering certain theft-related expenses.
Consumers seeking information about vehicle eligibility, installation appointments, or compensation claims can visit the settlement website at www.HKMultistateimmobilizersettlement.com.
In addition to Illinois, attorneys general participating in the settlement represent Arizona, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Jersey, New Hampshire, New Mexico, New York, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, Wisconsin, and the District of Columbia.
Raoul said the settlement reflects an ongoing commitment by states to protect consumers and public safety while holding corporations accountable for decisions that place communities at risk.