Hyundai, AAA Insurers Offer Protection For Cars With Theft Vulnerability

Hyundai and a group of independently operated AAA insurers have agreed on a program to offer coverage to owners of certain Hyundai vehicles that other insurance companies are reluctant to insure after a recent spate of thefts.

Hyundai is also accelerating a scheduled rollout of anti-theft software meant to curb the theft wave.

A Nationwide Problem

Car thieves began to target certain older Hyundai and Kia vehicles after a series of social media videos in 2022 showed viewers how to steal them with a screwdriver and a USB cable.

Hyundai and Kia are each under the umbrella of South Korea’s Hyundai Motor Company. They often build vehicles with common parts.

The theft wave became significant enough that loss claims for Hyundai and Kia models from certain years were nearly twice as common as claims for vehicles made by any other manufacturer.

The problem occurs only in base models of particular 2015-or-newer Hyundai and 2011-or-newer Kia models. Those vehicles lack an engine immobilizer — an anti-theft device that prevents a car from starting unless the correct transponder is built into the smart key.

More expensive trims of older Hyundai and Kia models tend to have immobilizers. Both Hyundai and Kia say all their 2022 and 2023 models use immobilizers.

Some Insurance Companies Balked at Coverage

The rash of thefts has caused at least two major insurance companies to decline coverage on some Hyundai and Kia models. Neither adopts the same policy in all 50 states.

Hyundai Speeding Up Software Updates

Both automakers have since rolled out software updates meant to solve the problem. The update, Hyundai says, adds an “ignition kill” mode to the vehicles. When an owner locks the car with the key fob, it will not allow the car to restart until it is unlocked with the key fob.

In the rare circumstance that a customer locks the car with the keyfob and unlocks it with the physical key, it will not start until they press the keyfob unlock button. So, if you own one of these cars, you’ll want to keep a fresh battery in your keyfob.

Kia did not provide a schedule of updates, saying only that it began upgrading vehicles with anti-theft software in February.

Hyundai provided a calendar of updates, planning to contact owners of certain vehicles in waves, asking them to come in for a free anti-theft software update.

The company now says it is ahead of schedule and accelerating the calendar.

An updated plan released this morning lists the following dates for upgrades:

Insurance Available

AAA insurers are independently owned and operated and don’t all follow one set of practices. But Hyundai says it has reached an agreement with AAA-affiliated insurers in 47 states. “Under the program, AAA insurers will issue new and renewal policies for eligible affected Hyundai customers. Consumers can visit AAA.com/insurance to receive a quote.”

AAA does not offer insurance in Alaska, Massachusetts, or Washington state.

Some Cars Can’t Accept Update

A few older models, Hyundai says, cannot accept the software upgrade. For those, “Hyundai will reimburse those owners for their purchase of steering wheel locks. Hyundai is also preparing to provide this subset of customers with the option of obtaining reimbursement to offset their purchase of a different anti-theft device, such as an alarm kit.” Owners can visit www.HyundaiAntiTheft.com for more information.

No Word from Kia Yet

Though Hyundai and Kia share part ownership and many components, they are separate companies and don’t always take the same steps. The AAA insurance agreement does not seem to cover Kia cars. A Kia spokesperson tells us the company has nothing to announce yet, but asked us to stay tuned.