Car key insurance

Key takeaways

• Covers the costs of replacing lost, stolen, or damaged car keys, including reprogramming security features, providing a courtesy car, and offering emergency assistance.

• Replacing modern car keys can be expensive, with costs ranging from £200 to over £1,000, depending on the type of key and vehicle.

• Car key insurance can be added to a standard car insurance policy, purchased separately, or possibly included in home contents insurance.

Why consider car key insurance?

Imagine you're running late for an important meeting and, to your dismay, you realize your car keys are nowhere to be found. Panic sets in as you consider the implications: no car, no meeting, and a hefty bill for a new set of keys. This is where car key insurance comes into play. It's designed to cover the costs of getting new keys and, in many cases, provides a courtesy car while your vehicle is unusable. The decision to opt for this insurance hinges on how much you rely on your car and the potential replacement cost of your keys.

The price of peace of mind

The average cost of replacing a car key in the UK in 2023 was £240 according to tradesperson finder Checkatrade. But while a traditional car key for an older car can often be replaced for under £200, buying a new remote or keyless entry key for a modern vehicle can cost you more than £1,000. 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.

What exactly is car key insurance?

Key cover insurance, also known as car key insurance or car keys insurance, is usually taken out as an add-on to your car insurance policy. However, you can also buy standalone car key cover. This specialized insurance is designed to step in when you're left keyless, covering the costs associated with lost, stolen, or broken keys.

What's covered under car key insurance?

Car key insurance goes beyond just replacing your missing keys. It often includes:

• 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

Is key cover included in standard car insurance?

It's not uncommon for insurers to offer key cover as part of their standard car insurance package, but this isn't always the case. Some may charge extra for this benefit, and the level of coverage can vary significantly. 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.

Alternatives to standard policy inclusions

If car keys insurance is not included with your car cover, other options include adding it to your policy by contacting your insurer and buying a standalone car key policy, which may also cover the keys to your home. If you have comprehensive home contents insurance, your car keys might already be covered, or you could add them to your policy.

The cost factor

The price tag for car key insurance can fluctuate based on several factors, including the make and model of your car and the type of key you use. Sophisticated keys like transponders or smart keys will generally push the cost of insurance higher due to the complexity and security features they entail.

Key types and replacement costs

In the UK, car keys come in various forms, each with its 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.

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

Exclusions to watch out for

While car key insurance can be a lifesaver, it's important to be aware of common exclusions:

• 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

The right response to key theft

If you find yourself the victim of key theft, it's crucial to obtain a crime reference number and report the incident to the police promptly. This documentation is typically required to make a theft claim on your car key insurance.

Lost keys: what to do

Should you lose your keys, report the incident to your insurance provider or a trusted locksmith. You'll need to provide proof of ownership and your Vehicle Identification Number (VIN) to proceed with getting a replacement.

The spare key advantage

Having a spare set of keys can significantly reduce the inconvenience and expense should you lose your primary set. It's a simple yet effective way to mitigate the stress of lost or stolen keys.

Locked out? Breakdown insurance might be the answer

Your car key insurance provider may not always be the best placed to help if you lock your keys inside your car. If you have breakdown insurance, this is usually a better place to start. Otherwise, your local garage or locksmith can provide assistance.

Waiting for replacement keys

The timeframe for getting replacement keys can vary, typically taking anywhere from 5 to 10 days. During this period, some policies offer the use of a courtesy car to keep you mobile.

Keeping your keys safe

To avoid the hassle altogether, consider these tips for keeping 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.

Finding affordable car key insurance

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.