In a recent study conducted by the Highway Loss Data Institute (HLDI), it was revealed that theft rates for Hyundai and Kia vehicles saw a significant decrease after receiving a software upgrade to prevent potential thieves from stealing them. The research showed that vehicles without electronic immobilizers that underwent the software upgrade experienced a reduction in theft claim frequencies by more than half.
The initiative to offer a software upgrade for Hyundai and Kia vehicles came about in February 2023 following a social media trend that demonstrated how easy it was to steal these cars. The upgrade was designed to only allow the vehicles to start if the owner’s key or an identical duplicate was present in the ignition. Additionally, a sticker was added to the vehicles that had received the software upgrade to serve as a deterrent to thieves.
Nearly two dozen Hyundai and Kia models from the years 2011 to 2022 were eligible for the software update. The report from HLDI indicated that theft claim frequencies for upgraded Hyundais were 55% lower than those that were not upgraded, while upgraded Kia vehicles saw a 51% reduction in theft claim frequencies compared to their non-upgraded counterparts. When combined, the vehicles that received the upgrade had theft claim frequencies that were 53% lower than those that did not.
Furthermore, the study revealed that whole vehicle theft claims, which are calculated by matching the cost of the claim to the amount insurers pay for the same model if it’s totaled in a crash, decreased by 64% for vehicles that underwent the upgrade. However, vandalism claim frequencies increased for Hyundai-Kia vehicles that were upgraded, likely due to failed theft attempts.
Despite the effectiveness of the software upgrade, HLDI’s database showed that only 30% of eligible Hyundais and 28% of eligible Kias had received the upgrade as of December 2023. However, Hyundai and Kia have continued to upgrade vehicles, with approximately 60% of eligible vehicles receiving the upgrade as of mid-July 2024.
Matt Moore, senior vice president of HLDI, emphasized the effectiveness of the companies‘ solution and encouraged owners of Hyundai and Kia vehicles without electronic immobilizers to contact their local dealer about getting the software upgrade. The report noted that the upgrade only works if the driver remembers to lock their vehicle with a fob, as thieves who are thwarted by the software upgrade may resort to stealing items from inside the vehicle.
In conclusion, the study highlighted the positive impact of the software upgrade on reducing theft claim frequencies for Hyundai and Kia vehicles. While vandalism claim frequencies increased for upgraded vehicles, the overall decrease in whole vehicle theft claims demonstrated the effectiveness of the upgrade in deterring thieves. As more vehicles receive the upgrade, it is expected that claim rates for Hyundai and Kia vehicles will gradually align with those of other brands, making them less vulnerable to theft.