What is car key insurance?

Key takeaways

• Car key insurance covers the cost of replacing lost, stolen or damaged car keys, as well as offering emergency assistance and even providing a courtesy car

• It can be added to standard car insurance, purchased separately or sometimes included in home contents cover

• Modern car keys can be expensive to replace, ranging from £160 to more than £1,000, depending on the type of key and vehicle whereas car key insurance might only cost £10-£50

What is car key insurance?

Car key insurance covers the cost of replacing your car keys if they’re lost, damaged or stolen. It’s a type of cover you can add on to your car insurance policy or buy as a standalone product.

Is car key insurance worth it?

Yes, it can be worth taking out car key insurance, when you consider the cost of replacement car keys today.

The average cost of replacing a manual car key in the UK in 2026 is £160, according to tradesperson finder Checkatrade, while for remote car keys it’s £320. But lost car key replacements for premium or luxury models can be £1,000 or even £8,000.

It's a steep price to pay for a small piece of hardware, but it's the reality of today's sophisticated car security systems.

Is car key cover included in standard car insurance?

Car key cover is sometimes included in standard car insurance policies, but not always - so it’s always worth checking your policy documents to be sure.

You might have to pay more for this cover, and the level of protection you’ll get can vary between insurers.

What does car key insurance cover?

Depending on your insurance provider and type of policy, your car key insurance could include:

• Costs for new keys (up to £1,500)

• Replacement or reprogramming of immobilisers or security features

• Transport costs, provided you keep your receipts

• Access to a courtesy car

• An emergency helpline for immediate assistance

• The cost of calling out a locksmith

Certain policies ensure that your no-claims bonus remains unaffected, while others may only pay out for stolen keys, not those that are simply lost.

What’s excluded from car key insurance?

These are some common exclusions you should be aware of:

• Wear and tear damage to keys

• Lock damage without corresponding key damage

• Keys lost, stolen, or damaged outside the insured's address

• Claims for an extra set of keys

• Stolen keys without a crime reference number

• Partial repairs when a full replacement isn't necessary

• Upgrades to your existing keys

What are the alternatives to adding car key cover to my policy?

You do have other options if your car insurance provider’s key cover policy doesn’t meet your requirements:

• Buy standalone cover from another insurance provider - this may extend cover to your house keys too

• Add them to your home contents insurance policy

How much does car key insurance cost?

Car key insurance could cost between £10 and £50 a year but prices vary depending on your provider, level of cover, your car’s make and model and the type of keys you are insuring.

Sophisticated keys like transponders, keyless entry and remote keys generally cost more to insure due to the complex nature of their security features.

What are the different car key types?

In the UK, car keys come in various forms, each with their own replacement challenges and costs:

• Mechanically cut keys: Simple and inexpensive to replace, but offer low security

• Transponder keys: Embedded with microchips for added security and are quite common

• Laser cut or sidewinder keys: Require a specialist locksmith to replicate

• Smart keys: High-tech and costly due to the coding involved

• VATS keys: Feature upgraded security that makes them nearly impossible to duplicate

What should I do if my car key is lost or stolen?

If your car keys are lost or stolen, the first thing you should do is contact a trusted locksmith or, if you have car key insurance, your insurance provider.

You’ll need to show proof of ownership and your Vehicle Identification Number to get a replacement.

Should I keep a spare car key?

Yes, having a spare set of car keys can reduce the inconvenience and expense if you lose your primary set, a simple and effective way to help mitigate the stress.

How long will I have to wait for a replacement car key?

It might take anywhere from five to 10 days for your replacement keys to arrive - some insurers might offer a courtesy car for you to use during this time.

How can I keep my car keys safe?

Here are some tips to consider to help keep your car keys safe:

• Invest in a spare set of keys

• Use a tracking device to locate lost keys

• Always store your keys in a designated place

How can I compare car insurance quotes?

While MoneySuperMarket doesn't offer a comparison service for car key insurance, it can show you policies that include key cover.

For those seeking a comprehensive car insurance policy that may include key cover, our price comparison tool is an invaluable resource.

It allows you to compare a range of providers and see at a glance whether key cover is built into your car insurance deal or available as an optional extra.

Car key insurance can be a small price to pay for the peace of mind it provides. Whether you're prone to misplacing your keys or simply want to safeguard against the unexpected, it's an investment that could save you time, money, and a great deal of stress.