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Kia and Hyundai have reached a $200 million settlement with customers who had their vehicles stolen. The settlement covers nine million vehicle owners and includes up to $145 million for out-of-pocket losses for those who had cars stolen.
It includes up to $6,125 for the total loss of a vehicle and $3,375 for damage to the car and personal property. The settlement will also cover other expenses not covered by insurance, such as car rentals, towing costs, and any parking tickets or additional fines accrued by the stolen vehicles.
The lawsuit was filed after reports that certain Kia and Hyundai vehicles without push-button ignitions were easy to steal. Videos showing how simple it was went viral on TikTok, and the number of car thefts for those vehicles spiked.
The automakers said that they will install a software upgrade on 8.3 million vehicles to fix the issue. For owners whose cars cannot be upgraded, the car companies will provide up to $300 to buy steering wheel locks.
"We appreciate the opportunity to provide additional support for our owners who have been impacted by increasing and persistent criminal activity targeting our vehicles," Jason Erb, chief legal officer of Hyundai Motor North America, said in a statement to the New York Times. "Customer security remains a top priority, and we're committed to continuing software upgrade installations and steering wheel lock distribution to help prevent thefts."