Insurers sue Kia and Hyundai for over $1 billion over theft vulnerability

Approximately 200 insurance companies are seeking to recover more than $1 billion from Kia and Hyundai. The companies are facing legal action in the United States following a surge in vehicle thefts.

The claims are based on subrogation, where insurers seek to recoup funds already paid to policyholders for stolen or damaged vehicles. The lawsuit alleges that certain Hyundai and Kia models produced between 2011 and 2022 were manufactured without engine immobilizers, a security feature that prevents a vehicle from starting without an authorized key.

The vulnerability became widely known after social media videos demonstrated methods for quickly stealing these specific models. On September 14, 2026, the Ninth Circuit Court of Appeals overturned a lower federal court's decision in California that had dismissed the claims based on jurisdiction, allowing the legal process to proceed.