What is car key insurance?
Car key insurance can be a lifesaver if yours get lost, damaged or stolen - here’s how it works and how it can help you.
Key Takeaways
This 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 £200 to over £1,000 depending on the type of key and vehicle
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?
It can be, when you consider the cost of replacing car keys today. The average cost of replacing a manual car key in the UK in 2024 was £160 according to tradesperson finder Checkatrade, while for remote car keys it was £320 - but lost car key replacements can cost up to £3,000. 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 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 provider and type of policy, your car key insurance should 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?
Car key insurance can be a lifesaver, however there 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
Alternatives to adding car key cover to your 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 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?
The cost of car key insurance varies 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 and smart keys generally cost more to insure due to the complex nature of their security features.
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
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 your insurance provider, who should be able to provide one. 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 keys can reduce the inconvenience and expense if you lose your primary set, a simple and effective way to help mitigate the stress.
Waiting for replacement keys
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.
Keeping your 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
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.
